NSLNISP - NMDC Steel
📢 Recent Corporate Announcements
NMDC Steel reported a revenue of ₹3,007.69 crore for Q3 FY26, marking a 41.9% growth compared to ₹2,119.54 crore in Q3 FY25. The company's net loss narrowed significantly to ₹243.97 crore from a loss of ₹757.78 crore in the same period last year, although losses widened sequentially from Q2. Debt management showed improvement as total borrowings reduced to ₹4,802.62 crore from ₹6,376.97 crore YoY. The government's plan for a 50.79% strategic disinvestment remains a critical factor for the company's future valuation.
- Revenue from operations increased 41.9% YoY to ₹3,007.69 crore.
- Net loss narrowed to ₹243.97 crore in Q3 FY26 vs ₹757.78 crore in Q3 FY25.
- Total borrowings decreased by approximately ₹1,574 crore over the last 12 months to ₹4,802.62 crore.
- Finance costs reduced to ₹128.11 crore from ₹165.33 crore YoY, supported by an interest rate reset to 8.45%.
- Strategic disinvestment of 50.79% stake by the Government of India is still in progress.
NMDC Steel Limited has announced the cessation of Smt. Priyadarshini Gaddam as Director (Personnel) effective January 31, 2026, following her superannuation. In the interim, Shri Joydeep Dasgupta, the current Director (Production), has been assigned the additional charge of the Personnel portfolio. This management change follows Ministry of Steel guidelines and maintains the board's functional capacity. The current board structure shows several directors holding multiple portfolios, including the CMD who also holds the Finance charge.
- Smt. Priyadarshini Gaddam ceased to be Director (Personnel) on January 31, 2026, due to retirement.
- Shri Joydeep Dasgupta (Director - Production) has assumed the additional charge of Director (Personnel).
- The board currently consists of 5 members, including 2 Government Nominee Directors.
- CMD Shri Amitava Mukherjee continues to hold the additional charge of Director (Finance).
NMDC Steel Limited has announced that Shri Amitava Mukherjee, the current Chairman & Managing Director, will take on the additional responsibility of Director (Finance). This appointment is effective retrospectively from December 6, 2025, and is scheduled to continue until March 5, 2026, or until a permanent replacement is appointed. The decision follows a directive from the Ministry of Steel, Government of India. This move ensures continuity in financial leadership while the search for a dedicated Director (Finance) remains ongoing.
- Shri Amitava Mukherjee (CMD) entrusted with additional charge of Director (Finance).
- The tenure for this additional charge is 3 months, effective from December 6, 2025, to March 5, 2026.
- Appointment is based on Ministry of Steel Order dated January 27, 2026.
- The arrangement will last until a regular incumbent assumes the post or further orders are issued.
NMDC Steel Limited has announced that Shri Joydeep Dasgupta, the current Director (Production), will take on the additional charge of Director (Personnel). This appointment follows a directive from the Ministry of Steel, Government of India, dated January 14, 2026. The additional responsibility is effective from February 1, 2026, for an initial period of three months until April 30, 2026. Such interim leadership arrangements are standard practice in Public Sector Undertakings during transition periods.
- Shri Joydeep Dasgupta assigned additional charge as Director (Personnel) effective February 1, 2026.
- The appointment is for an initial duration of 3 months, ending April 30, 2026, or until further orders.
- Dasgupta currently holds the position of Director (Production) at NMDC Steel Limited.
- The change is based on Ministry of Steel Order No. S-14013/1/2025-BLA-Part(1) dated January 14, 2026.
NMDC Steel Limited has announced a leadership update following an order from the Ministry of Steel. Shri Vinay Kumar, the current Director (Technical), has been assigned the additional charge of Director (Commercial). This temporary arrangement is set for an initial period of 3 months, effective until April 6, 2026, or until further orders. The move ensures management continuity for the company's commercial operations during this interim period.
- Shri Vinay Kumar, Director (Technical), entrusted with additional charge of Director (Commercial).
- The appointment is for an initial period of 3 months, expiring on April 6, 2026.
- The change follows Ministry of Steel Order No. S-14013/2/2025-BLA-Part(1) dated January 9, 2026.
- The assignment is subject to further orders or the expiry of the 3-month term.
NMDC Steel Limited has filed its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The filing pertains to the quarter ended December 31, 2025, and confirms that share certificates received for dematerialization were processed correctly. This certificate was issued by the company's Registrar and Share Transfer Agent, M/s Aarthi Consultants Pvt. Ltd. This is a standard regulatory requirement for all listed entities in India to maintain accurate electronic shareholding records.
- Submission of Compliance Certificate for the quarter ended December 31, 2025
- Adherence to Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018
- Confirmation provided by Registrar M/s Aarthi Consultants Pvt. Ltd.
- Standard administrative filing with no operational or financial impact
Mr. Vishwanath Suresh has stepped down as Director (Commercial) of NMDC Steel Limited effective January 07, 2026. This transition follows his appointment as the Chairman & Managing Director (CMD) of MOIL Limited by the Ministry of Steel. His cessation at NMDC Steel is a direct consequence of the co-terminus board structure between NMDC Limited and NMDC Steel Limited. The company's board remains functional with four other functional directors and two government nominee directors currently in place.
- Cessation of Mr. Vishwanath Suresh as Director (Commercial) effective January 07, 2026
- Departure follows his appointment as CMD of MOIL Limited by the Ministry of Steel
- Board structure follows a co-terminus arrangement with NMDC Limited as per 2023 Ministry orders
- Current board composition includes 4 functional directors and 2 government nominee directors
NMDC Steel Limited has notified the stock exchanges regarding the closure of its trading window for all insiders starting January 1, 2026. This action is a mandatory compliance requirement under SEBI (Prohibition of Insider Trading) Regulations, 2015. The closure is in anticipation of the declaration of financial results for the quarter ending December 31, 2025. The trading window will remain closed until 48 hours after the results are made public.
- Trading window closure scheduled to begin on January 1, 2026
- Closure pertains to the financial results for the quarter ending December 31, 2025
- Restriction applies to all Insiders, Designated Persons, and their immediate relatives
- Window will reopen 48 hours after the official announcement of quarterly results
Financial Performance
Revenue Growth by Segment
Operating income grew by 178.88% YoY, increasing from INR 3,049 crore in FY2024 to INR 8,503 crore in FY2025, driven by the first full year of operations following the August 2023 commissioning.
Geographic Revenue Split
Primarily domestic-focused; while specific regional percentages are not disclosed, the company relies on the Indian domestic market, which saw improved realizations post-March 2025 due to the implementation of safeguard duties on cheaper imports.
Profitability Margins
Net Profit Margin stood at -27.92% in FY2025, an improvement from -49.2% in FY2024. The company reported a Loss After Tax of INR 2,373.78 crore in FY2025 compared to a loss of INR 1,560.32 crore in FY2024 due to high initial ramp-up costs.
EBITDA Margin
Operating profit is projected to reach ~INR 1,340 crore in FY2026, a significant turnaround from an operating loss of INR 1,788 crore in FY2025. H1 FY2026 EBITDA is expected between INR 700-750 crore compared to a negative INR 1,335 crore in H1 FY2025.
Capital Expenditure
The total project cost for the Nagarnar Iron & Steel Plant was approximately INR 24,000 to INR 25,000 crore, with ~71% funded through equity infusion from NMDC Limited and the remainder via external debt.
Credit Rating & Borrowing
Crisil maintains a 'BBB+/Watch Developing' rating. The company has a total debt of ~INR 5,000 crore with a debt servicing obligation of INR 1,652 crore (principal + interest) scheduled for FY2026.
Operational Drivers
Raw Materials
Iron Ore represents 15-20% of the total cost of production; Coking Coal is the other primary raw material, with the company maintaining a 1-month warehouse inventory and 1-month in-transit inventory.
Import Sources
Iron ore is sourced domestically from Chhattisgarh (NMDC mines); Coking coal is imported, though specific countries are not named, it is managed through port-based warehouses and sea transit.
Key Suppliers
NMDC Limited is the primary supplier for iron ore under a nine-year long-term contract executed on an arm's length basis with flexible credit terms.
Capacity Expansion
Current installed capacity is 3.0 Million Tonnes Per Annum (MTPA) at the Nagarnar Iron & Steel Plant (NISP). No immediate further expansion is detailed as the focus remains on stabilizing the current 3 MTPA greenfield facility.
Raw Material Costs
Raw material costs are mitigated by a long-term contract with NMDC. Iron ore costs are 15-20% of production; payments to NMDC are made on an ad-hoc basis based on NSL's performance, providing a liquidity cushion.
Manufacturing Efficiency
Capacity utilization improved significantly to 82% in Q1 FY2026 from 50% in FY2025. The company achieved neutral EBITDA for the first time in March 2025 as operations stabilized.
Logistics & Distribution
Not disclosed as a specific percentage of revenue, but the company utilizes port-based warehouses for coal and relies on rail/road for domestic steel distribution.
Strategic Growth
Expected Growth Rate
64%
Growth Strategy
Growth will be achieved by ramping up capacity utilization from 50% to over 80%, optimizing production costs to achieve a projected INR 1,340 crore operating profit in FY2026, and benefiting from the GoI safeguard duties which align domestic realizations with market prices.
Products & Services
Hot Rolled Coils (HRC), Flat Steel products, Semis, and Pig Iron. In FY2025, approximately 23% of output was sold as lower-margin semis and pig iron due to technical constraints at finished steel lines.
Brand Portfolio
NMDC Steel Limited (NSL), Nagarnar Iron & Steel Plant (NISP).
New Products/Services
Focus is on increasing the proportion of high-value finished steel products over semis/pig iron to improve blended realizations; specific new product revenue % not disclosed.
Market Expansion
The company is focusing on stabilizing operations in the domestic Indian market post-demerger from NMDC; target regions include domestic infrastructure and construction hubs.
Market Share & Ranking
Not disclosed; the company is a new entrant with a 3 MTPA capacity in the competitive Indian steel sector.
Strategic Alliances
Maintains a critical operational and administrative support alliance with NMDC Limited, mandated by the Ministry of Steel until the divestment process is finalized.
External Factors
Industry Trends
The steel industry is inherently cyclical with high earnings volatility. The current trend shows a recovery in domestic prices post-March 2025 and a shift toward higher capacity utilization among domestic players to offset high fixed costs.
Competitive Landscape
Competes with large domestic steel producers and international importers; market dynamics are currently influenced by government protectionist duties and domestic infrastructure demand.
Competitive Moat
Moat is derived from raw material security via the 9-year NMDC iron ore contract and status as a CPSU, providing access to flexible credit and government support; sustainability depends on successful divestment and operational ramp-up.
Macro Economic Sensitivity
Highly sensitive to domestic investor sentiment and GDP growth; a slowdown in infrastructure spending directly impacts demand for flat steel products.
Consumer Behavior
Demand is driven by end-user industries like automobiles and construction; shifts toward sustainable infrastructure are expected to influence long-term product mix.
Geopolitical Risks
Trade barriers and safeguard duties (SGD) act as a protective measure against global price volatility and cheaper imports from surplus-producing nations.
Regulatory & Governance
Industry Regulations
Operations are subject to Ministry of Steel mandates, pollution norms, and safeguard duties (SGD) implemented in March 2025 to curb cheaper imports.
Environmental Compliance
Not disclosed in absolute INR; however, the company follows statutory requirements and has implemented resettlement and rehabilitation for 750 land losers.
Taxation Policy Impact
The company reported a tax credit/benefit of INR 947.94 crore in FY2025. It holds an Input Tax Credit (ITC) for capex of INR 1,475 crore, providing a liquidity release of ~INR 600 crore per annum via GST set-offs.
Legal Contingencies
The Vigilance Department resolved 49 grievances in FY2025; specific case values for pending litigation in High/Supreme courts are not disclosed in the provided documents.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timeline and outcome of the GoI divestment (50.79% stake), which could significantly alter the company's support structure and strategic direction.
Geographic Concentration Risk
High concentration in India, specifically the Nagarnar region for production; revenue is tied to the health of the Indian domestic steel market.
Third Party Dependencies
Critical dependency on NMDC Limited for iron ore (15-20% of costs) and operational handholding; any change in NMDC's support philosophy is a key rating sensitivity.
Technology Obsolescence Risk
Risk of technical issues at finished steel lines which previously limited output to 23% semis/pig iron; digital transformation includes adopting electronic procurement and preventive check systems.
Credit & Counterparty Risk
Faces potential loss if counterparties default on receivables; mitigated by a robust capital base and monitoring of return on capital (operating activities / total equity).