PSU Stock Skyrockets 18% After Reporting Its First-Ever Profit Since Listing

Synopsis: The shares of this state-owned steel producer surged 18 percent after reporting a strong turnaround in Q4FY26, driven by higher revenue, improved margins, and posting first ever Net profit.

The share of this company, which is a Navratna Public Sector Enterprise under the Ministry of Steel, Government of India, is the single largest producer of iron ore in India, and gained traction after the turnaround quarter.

With a market capitalization of Rs 14,694 crore, NMDC Steel Ltd’s share on Monday made a day high of Rs 52.60 per share, up by 18  percent from its previous day’s close price of Rs 44.58 per share. The share of the company gave a return of 30 percent in the last year.

Result Overview

• QoQ View: The revenue from operations grew by 29.0 percent to Rs 3,879 crore in Q4 FY26 from Rs 3,008 crore in Q3 FY26, and EBIDT surged by 726.7 percent to Rs 806 crore in Q4 FY26 from Rs 97.5 crore in Q3 FY26. This profitability expansion was accompanied by a substantial net profit of Rs 392 crore in Q4 FY26 from a net loss of Rs 244 crore in Q3 FY26, resulting in a sequential EPS turnaround to Rs 1.34 per share from a negative Rs 0.83 per share in Q3 FY26.
• YoY View: The revenue from operations grew by 37 percent to Rs 3,879 crore in Q4 FY26 from Rs 2,838 crore in Q4 FY25, while EBIDT turned around significantly, growing to a profit of Rs 806 crore in Q4 FY26 from a loss of Rs 291 crore in Q4 FY25. This strong operating performance was accompanied by a net profit turnaround to Rs 392 crore in Q4 FY26 from a net loss of Rs 473 crore in Q4 FY25, resulting in an EPS growth to Rs 1.34 per share in Q4 FY26 from a negative Rs 1.62 per share in Q4 FY25.
• Fiscal year comparison: revenue from operations rising 28.9 percent to Rs 3,879 crore from Rs 3,008 crore in FY25. Profit before tax stood at Rs 486 crore compared to a loss of Rs 264 crore in FY25, while profit after tax came in at Rs 392 crore against a loss of Rs 244 crore in the previous year. Earnings per share improved to Rs 1.34 from a negative Rs 0.83 in FY25, reflecting a significant recovery in profitability and operational performance.
• Shareholding Pattern: As of Q4FY26, promoters held a 60.79 percent stake in the company. FIIs increased their shareholding to 4.85 percent from 4.60 percent on a YoY basis, while DII holdings declined slightly to 15.85 percent from 16.03 percent. Public shareholding also remained largely stable during the period.

About the Company

NMDC Steel Ltd. is a Central Public Sector Enterprise under the Government of India’s Ministry of Steel. Demerged from the mining major NMDC Ltd., NSL owns and operates a state-of-the-art 3.0 MTPA greenfield integrated steel plant in Nagarnar, Chhattisgarh. The company manufactures a diverse range of steel products, including Hot Rolled (HR) coils, low-carbon steel, High-Strength Low-Alloy (HSLA) steel, dual-phase steel, and API-grade steel.

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