Analyst Concall
NMDC plans to double capex to INR 60 bln in FY27
This story was originally published at 13:51 IST on 1 June 2026
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--NMDC: Hope to double capital expenditure this year
--CONTEXT: Comments by NMDC mgmt in post-earnings analyst conference call
--NMDC: Hope to mine 0.75-1 mln tn coal from captive mine in Q2
--NMDC: Expect greater profit from NMDC Steel this year
--NMDC:More focus on overseas channels than domestic for rare earth minerals
--NMDC: Expect capex of INR 60 billion in FY27
--NMDC: Expect capex of INR 90-INR 100 bln every year during FY28-FY31
--NMDC: Slurry pipeline in south-east India to get commissioned by mid-Jul
--NMDC: Hope to start operations at Hazaribagh coal mines in Q3
--NMDC: Expect to maintain EBITDA at 42-43% in FY27
By Ashutosh Pati and Avishek Rakshit
MUMBAI/KOLKATA – NMDC Ltd. expects to double its capital expenditure in 2026-27 (Apr-Mar) to around INR 60 billion and plans to scale this up to INR 90 billion-INR 100 billion in the subsequent three-four years, a senior company official said Monday in the post-March quarter results conference call with analysts and investors.
The mining company hopes to maintain its earnings before interest, tax, depreciation, and amortisation margin at 42-43% in FY27 as it expects iron ore prices to remain range bound. For FY26, the company reported an EBITDA of INR 107.37 billion, with an EBITDA margin of 34%.
NMDC is taking steps towards building its rare earths and other critical minerals' portfolio and is focussing more on overseas for the same. It has entered into a memorandum of understanding with the Gujarat Mineral Development Corp. to jointly develop and create processing facilities for the rare earth mine in Gujarat, the management said. "We are in advanced level of talks with them to get this operational as fast as possible. Our main thrust on critical minerals and rare earths is essentially abroad," the official said.
The company expects to spend around INR 20 billion to INR 30 billion on the acquisition of critical mineral assets abroad in FY27. With the help of all these, NMDC is well positioned to reach its target of 100 million tonnes per annum iron ore producing capacity by the end of the decade, the senior official said. NMDC is also expanding its coking coal operations, with two coal mines at Hazaribagh in Jharkhand expected to start operations by the December quarter. The peak rated capacity of the mine is 8 million tonnes per annum.
The company has a slew of expansions and mining ready to commence around the second and third quarter of FY27. This includes a captive coal mine, commercial coal mine, a slurry pipeline, among others. NMDC expects to mine around 750,000 tonnes to 1 million tonnes of coal from its captive coal mine in Jharkhand by the September quarter. It is also looking to start commercial mining at the Bailadila Deposit 4 in Chhattisgarh by July. It has opened the mine already and is currently installing the necessary infrastructure here, the senior official said. NMDC's slurry pipeline in south-east India is likely to be commissioned by mid-July.
When asked when the company will recover all the dues from NMDC Steel Ltd., the senior official said NMDC Steel has become profitable and a "much greater" profit is expected this year as most of the operational aspects have been resolved barring one or two. "So NSL (NMDC Steel) we see light at the end of the tunnel. I guess it should take about a year and a half, max two, to liquidate the entire amount of outstanding (dues)."
For the quarter ended March, NMDC reported net profit of INR 20.20 billion on revenues of INR 111.73 billion. At 1316 IST, shares of the company were around 4% higher at INR 91.49 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj and Akul Nishant Akhoury
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