NMDC clears 53 mt in FY26, reopens two mines for the first time in 50 years
The miner beat its production target and is now doubling capex to restart Deposit 4 and Deposit 13, setting the stage for a push to 100 mt capacity by 2030.
What's new
- FY26 production reached 53 mt, beating the 50 mt target; sales revenue was ₹31,000 cr and PAT grew 11% year-on-year.
- Deposit 4 and Deposit 13, dormant for 50 years, will reopen to support the FY27 output target of 60 mt.
- Capex will double to ₹6,000 cr in FY27 as part of a ₹40,000-50,000 cr three-year spending plan.
Why this matters
The reopening of two long-idle mines and a doubling of annual spending mark a clear shift from maintenance to aggressive capacity expansion. NMDC is moving to capture domestic iron-ore demand before imports fill the gap, but the plan hinges on simultaneous execution of new mines, coal projects, and a branded-ore platform.
What we're watching
- Ramp-up pace at Deposit 4 and Deposit 13 against the 60 mt FY27 target.
- Commissioning of the ₹3,000 cr Vizag blending yard for India's first branded iron ore.
- Evacuation capacity from the 90%-complete railway doubling project hitting 40 mt.
The full read
NMDC mined 53 mt of iron ore in FY26, beating its 50 mt target and generating ₹31,000 cr in sales revenue. PAT rose 11% despite pricing headwinds. The company is now pivoting to a major expansion. It will reopen Deposit 4 and Deposit 13, mines shuttered for 50 years, to support an FY27 production target of 60 mt. It will also begin coal mining at Tokisud and Rohne. Capex jumps to ₹6,000 cr in FY27, part of a ₹40,000-50,000 cr three-year plan to double annual capacity to 100 mt by 2030. A railway doubling project, 90% complete, will free evacuation capacity to 40 mt. Management expects iron ore EBITDA margins to normalize at 42-43% in FY27 as prior-year steel trading distortions unwind. The ₹3,000 cr blending yard at Vizag aims to create India's first branded iron-ore product, a bet on value over volume. The test now is executing all these pieces at once.
Questions answered
- What does the reopening of Deposit 4 and Deposit 13 mean for output?
- These mines have been shut for 50 years. Their restart is the backbone of the FY27 target of 60 mt and the longer-term goal of 100 mt by 2030.
- How is NMDC funding the expansion?
- Annual capex is set to double to ₹6,000 cr in FY27. The company plans to spend ₹40,000-50,000 cr over three years to reach 100 mt of capacity.
- What is the branded iron-ore initiative?
- A ₹3,000 cr blending yard at Vizag is being built to create India's first branded iron-ore product, aiming to command a premium over commodity ore.
- How will NMDC move its additional output?
- A railway doubling project, 90% complete, will immediately lift evacuation capacity to 40 mt, removing a logistics bottleneck for the new mines.
- What margin does management expect in FY27?
- Iron ore EBITDA margins are guided to normalize at 42-43% as one-off steel trading impacts from the prior year fade.
- What drove the 11% PAT growth in FY26?
- Higher volumes pushed production past the 50 mt target to 53 mt, generating ₹31,000 cr in revenue that offset softer iron-ore realisations.