Revenue and Profitability Trends
NMDC’s net sales have shown considerable volatility, peaking at ₹25,965 crores in March 2022 before moderating to ₹23,906 crores in March 2025. The company experienced a notable dip in sales during the fiscal years 2019 and 2020, with a recovery phase evident from 2021 onwards. Total operating income mirrored this pattern, reflecting the company’s core business activity without other operating income contributions.
Operating profit before depreciation and interest (PBDIT) excluding other income reached a high of ₹12,624 crores in March 2022 but declined to ₹8,149 crores by March 2025. Including other income, operating profit stood at ₹9,742 crores in the latest fiscal year, up from ₹6,821 crores in 2023, indicating some recovery. Profit before tax followed a similar trajectory, with ₹9,144 crores in March 2025 compared to a peak of ₹13,016 crores in 2022.
Profit after tax (PAT) has also fluctuated, reaching ₹9,441 crores in 2022 before settling at ₹6,540 crores in 2025. Earnings per share (EPS) reflected these swings, with a high of 22.7 in 2022 and a more recent figure of 7.44 in 2025, influenced by changes in equity capital and reserves.
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Cost Structure and Margins
NMDC’s expenditure profile reveals a steady increase in total costs excluding depreciation, rising from ₹5,228 crores in 2019 to ₹15,757 crores in 2025. Key cost components such as employee expenses and selling and distribution expenses have grown consistently, reflecting operational scale and inflationary pressures. Raw material costs remain minimal relative to total sales, underscoring the company’s efficient resource utilisation.
Operating profit margins excluding other income have contracted from a robust 57.2% in 2021 to around 34.1% in 2025, indicating margin pressure amid fluctuating sales. Gross profit margins have similarly declined but remain healthy at 40% in the latest fiscal year. PAT margins have moderated from over 40% in 2021 to 27.4% in 2025, signalling a more competitive environment and cost challenges.
Balance Sheet and Financial Position
The company’s balance sheet shows a strengthening of shareholder funds, which rose from ₹18,018 crores in 2022 to ₹29,696 crores in 2025. Total liabilities have increased to ₹40,711 crores in 2025, up from ₹24,343 crores in 2022, driven largely by growth in current liabilities and short-term borrowings. Long-term borrowings have been eliminated since 2022, reflecting a shift towards short-term financing.
NMDC’s asset base expanded significantly, with total assets increasing from ₹24,343 crores in 2022 to ₹40,711 crores in 2025. Capital work in progress surged notably in 2021 but has since normalised to ₹4,737 crores in 2025, indicating ongoing investments in capacity or infrastructure. Cash and bank balances remain strong, though they have declined from ₹12,364 crores in 2024 to ₹10,089 crores in 2025.
Cash Flow and Liquidity
Cash flow from operating activities has been uneven, with ₹1,894 crores generated in 2025 compared to a peak of ₹7,393 crores in 2024. Investing activities have fluctuated, with a positive inflow of ₹305 crores in 2025 following significant outflows in prior years. Financing activities consistently show outflows, reflecting debt repayments and dividend distributions. The net cash position remains relatively stable, with minor inflows and outflows over recent years.
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Summary of Historical Performance
Over the past six years, NMDC has experienced significant fluctuations in revenue and profitability, with a peak in fiscal 2022 followed by a moderate decline. Despite margin pressures, the company maintains solid operating and net profit margins relative to industry standards. Its balance sheet reflects a robust equity base and growing asset investments, supported by manageable liabilities and a strong cash position.
While earnings per share have varied due to changes in equity and reserves, NMDC continues to generate substantial profits and cash flows, underpinning its financial stability. The company’s strategic investments and cost management will be critical to sustaining growth and profitability in the coming years.
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