NMDC riding on twin boosters

Shares of NMDC Ltd have risen about 11% so far in September, buoyed by robust sales growth even in a typically slow season.

- Ashish Agrawal

Sales volumes climbed 8% year-on-year in August, a seasonally weak month because of the monsoon rains, pushing overall growth in the first two months of the September quarter (Q2FY26) past 10%. Production, meanwhile, surged 23% as the state-run miner gears up for an expected demand pick-up.

Demand outlook remains bright, underpinned by the expected ramp-up of recently commissioned steel mills. Yet, the iron ore producer remains exposed to volatility in global prices and an expected rise in domestic output from rival miners. NMDC's solid August volumes came despite a price hike at the start of the month, underscoring strong offtake. It had raised prices in May to cash in on the improved outlook for the steel sector following the imposition of safeguard duty, but rolled them back in June and July. Average prices in Q2 so far are 3.5%-3.8% higher year-on-year, setting up the quarter for robust performance.