NMDC Steel shares jump 14% on Q4 profit revival; more steam left in the stock?

Shares of NMDC Steel Ltd soared 13.57 per cent on Monday to settle at Rs 50.63 after the company reported a sharp turnaround in earnings for the January-March quarter of FY26.

The steelmaker posted a consolidated net profit of Rs 391.91 crore in Q4 FY26 against a net loss of Rs 473.39 crore in the corresponding quarter last year. Revenue from operations rose 36.67 per cent year-on-year (YoY) to Rs 3,879 crore from Rs 2,838.25 crore.

For the full financial year FY26, NMDC Steel reported a net profit of Rs 58.72 crore, reversing a net loss of Rs 2,373.78 crore recorded in FY25. Revenue climbed 60.43 per cent to Rs 13,641.81 crore from Rs 8,503.05 crore a year ago.

From a technical standpoint, a few analysts remain bullish on NMDC Steel following its breakout above the Rs 47–48 zone, with upside targets ranging from Rs 54 to Rs 64. However, one analyst cautioned that the stock appears overbought and advised investors to consider profit booking.

Osho Krishan, Chief Manager – Technical & Derivative Research at Angel One, said, "NMDC Steel has witnessed a strong consolidation breakout above the Rs 48 subzone and is likely to start its northward journey towards Rs 60-64 levels. The neckline of the breakout around Rs 48-45 is likely to cushion the counter in the near period."

Virat Jagad, Senior Technical Research Analyst at Bonanza, said the stock has delivered a bullish breakout above a multi-month resistance level.

"The stock exhibits a powerful bullish breakout above multi-month resistance at Rs 47. Consider a fresh entry at Rs 49.50–50.50, targeting Rs 58 and Rs 64. Maintain a strict stop loss for new and existing positions at Rs 44," Jagad noted.

AR Ramachandran, Sebi-registered research analyst at Tips2trades, said, "NMDC Steel is bullish but also overbought on daily charts with next resistance at Rs 54.83. Investors should keep booking profits as a daily close below the support of Rs 47.4 could trigger a fall towards Rs 38 level in the near term."

Meanwhile, Jigar S Patel, Senior Manager – Technical Research at Anand Rathi, said support for the stock is placed at Rs 48, while resistance is seen at Rs 52.

"A decisive move above Rs 52 may trigger a further upside towards Rs 54. The expected trading range in the short term is between Rs 48 and Rs 54," Patel added.