Shares of NMDC Steel soared 17% to ₹41 on August 13 after the company reported its first-ever quarterly profit. This marked its sharpest single-day rise since January 2024.

For the June quarter (Q1 FY26), the steelmaker posted a net profit of ₹26 crore. This was a sharp turnaround from a net loss of ₹547 crore in the same quarter last year.

Revenue from operations rose 66% year-on-year to ₹3,365 crore. EBITDA came in at ₹408 crore, reversing from a loss of ₹401 crore in Q1 FY25. The EBITDA margin stood at 12%.

The strong performance was supported by higher steel prices, improved production capacity, and stronger operating leverage. Analysts noted that the ramp-up in output was crucial to the earnings turnaround.

A key operational milestone during the quarter was the commissioning of NMDC Steel’s 3 million tonnes per annum integrated steel plant at Nagarnar, Chhattisgarh. The plant is now fully operational, marking a significant step in the company’s expansion strategy.

The Nagarnar plant is expected to be a major growth driver for the company in the coming years, enabling higher volumes and better cost efficiencies.

On the policy front, reports last month suggested that the government is unlikely to proceed with the disinvestment of NMDC Steel in the current financial year.

The process has reportedly run into multiple roadblocks. Officials indicated that the stake sale will not be pushed aggressively in the near term.

Sources familiar with the matter said pending operational and financial issues need resolution before the sale process can resume. Once these are addressed, the disinvestment plan is expected to be fast-tracked.

NMDC Steel was carved out of NMDC Limited to manage the Nagarnar plant and pursue independent growth. The turnaround in Q1 FY26 is being viewed as a major credibility boost for the company ahead of any future stake sale.

Market watchers believe the first quarterly profit will improve investor sentiment. However, they also caution that sustaining profitability will depend on global steel prices, domestic demand, and the smooth functioning of the Nagarnar plant.

With capacity ramping up and pricing trends favourable, NMDC Steel appears poised for stronger operational performance in the near term. But the timeline for disinvestment remains uncertain.