NMDC Steel shares surge 19% after turning profitable in June quarter

Shares of NMDC Steel were witnessing strong buying interest on Wednesday, August 13, a day after the company reported June quarter earnings. NMDC Steel shares rose as much as 19% to hit an intraday high of ₹42.70 on the BSE. On the National Stock Exchange, NMDC Steel shares rose as much as 19.10%.

NMDC Steel on Tuesday post-market hours reported a net profit of ₹25.56 crore in the first quarter of the current financial year (Q1FY26) against a loss of ₹547 crore in the same period last year.

NMDC Steel's revenue from operations jumped 66% in the April-June period to ₹3,365 crore from ₹2,023 crore in the year-ago period.

The company reported strong operational performance, as its EBITDA (earnings before interest, taxes, depreciation, and amortisation), also known as operating profit, came in at ₹408 crore against an EBITDA loss of ₹401 crore.

Its EBITDA margin came in at 12.12%.

“The Company has borrowings amounting to ₹523.80 crore in the form of non-convertible debentures (NCDs). The NCDs are unsecured, non-cumulative, non-convertible, redeemable taxable bonds of face value ₹10 lakhs each (Series 1-2020) allotted on 28.08.2020 carrying an interest rate of 7.30%,” NMDC Steel said in an exchange filing.

"Subsequent to demerger and revision in the Rating from 'AAA' to 'A- ', the coupon rate was revised to 8.80 w.e.f. 16.02.2023. The rating has been further revised to BBB+ and accordingly, the coupon rate is revised to 9.05% w.e.f. 5th June 2024. The ratings as on 30th June 2025 are "ICRA BBB+ Rating Watch with Developing Implications" and Ind A-/Negative by Credit Rating Agencies ICRA and India Ratings & Research respectively. The NCDs are redeemable on 28th August 2025 in full," the company added.

NMDC Steel shares were witnessing heavier than usual trading volumes post earnings announcement. Trading volumes in NMDC Steel shares spiked by 41 times to 6.13 crore shares against an average trading volume of 15 lakh shares.

On the BSE, as many as 76.48 lakh shares changed hands compared with an average of 2.33 lakh shares traded daily in the past two weeks.

As of 11:35 am, NMDC Steel shares traded 17.90% higher at ₹42.37, outperforming the BSE 500 index, which was up 0.42%.