NMDC Steel shares jump 19% as PSU swings to profit in Q1

Shares of NMDC Steel soared in Wednesday's trade after the state-run company reported a turnaround to profit in the June quarter (Q1 FY26). The stock surged 18.87 per cent to hit a day high of Rs 42.70. It saw high trading volume along with the price action, as around 90.80 lakh shares were last seen changing hands on BSE. The figure was way more than the two-week average volume of 2.33 lakh shares. Turnover on the counter came at Rs 37.78 crore, commanding a market capitalisation (m-cap) of Rs 12,323.20 crore.

The PSU swung to profitability in the June quarter, reporting a net profit of Rs 26 crore against a net loss of Rs 547 crore in the corresponding period last year. Revenue from operations surged 66 per cent year-on-year (YoY) to Rs 3,365 crore in Q1 FY26. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 408 crore, marking a sharp turnaround from a loss of Rs 401 crore in Q1 FY25. The EBITDA margin for the quarter was at 12 per cent.

Technically, NMDC Steel's scrip traded higher than the 5-day, 10-, 20-, 30, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 69.61. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the stock has a negative price-to-equity (P/E) ratio of 6.84 against a price-to-book (P/B) value of 0.86. Earnings per share (EPS) stood at (-)6.15 with a return on equity (RoE) of (-)12.55. According to Trendlyne data, NMDC Steel has a one-year beta of 1.2, indicating high volatility.

NMDC Steel Limited, a government-owned company under the administrative control of the Ministry of Steel, operates a state-of-the-art 3.0 million tonnes per annum (MTPA) steel plant at Nagarnar in Chhattisgarh.

As of June 2025, the government held a 60.79 per cent stake in the public sector undertaking (PSU).