Are NMDC Ltd latest results good or bad?

The latest financial results for NMDC Ltd highlight a significant rebound in operational performance during the December quarter of FY26. The company reported net sales of ₹7,610.79 crores, reflecting a robust sequential growth of 19.33% from the previous quarter, marking the highest quarterly revenue in its history. This growth is supported by a year-on-year revenue increase of 15.88%, indicating sustained demand for iron ore amidst global economic challenges. Net profit for the quarter stood at ₹1,756.59 crores, which represents a 3.40% increase compared to the prior quarter. This positive trend in profitability is noteworthy, especially in light of the margin pressures faced by the company. The operating margin, excluding other income, contracted to 28.17%, down from 31.25% in the previous quarter, primarily due to rising employee costs and increased operating expenditures. Despite this compression, the profit after tax (PAT) margin remained strong at 22.96%. Over the nine-month period of FY26, NMDC has demonstrated consistent profitability, generating a consolidated net profit of ₹5,423.19 crores on revenues of ₹20,727.76 crores, reflecting a modest year-on-year growth of 10.88%. The company's return on equity (ROE) of 25.81% and return on capital employed (ROCE) of 43.13% underscore its operational efficiency and strong capital management. Additionally, the company has seen a positive adjustment in its evaluation, reflecting the market's recognition of its operational resilience and financial strength. The stable promoter holding of 60.79% and the increasing interest from foreign institutional investors further reinforce NMDC's position as a key player in India's mining sector. In summary, NMDC Ltd's latest results indicate a strong operational performance with record sales and profitability, despite facing margin pressures. The company's solid financial metrics and strategic positioning in the iron ore market suggest a favorable outlook moving forward.