Synopsis : NMDC shares rallied over 5% after the company reported a nearly 20% jump in iron ore production for May 2026, highlighting strong operational momentum. Backed by expansion plans, rising steel demand and a bullish outlook from Motilal Oswal, the PSU miner remains on investors’ radar.
Shares of NMDC surged more than 5% on Tuesday after India’s largest iron ore producer reported a sharp rise in production for May 2026, reinforcing confidence in its long-term growth strategy.
According to provisional data released by the company, iron ore production increased nearly 20% year-on-year to 5.31 million tonnes (MT) in May, compared to 4.43 MT in the corresponding period last year. The strong production performance was largely driven by higher output from its Chhattisgarh operations.
Production in Chhattisgarh climbed to 3.99 MT from 3.06 MT a year ago, while sales from the region rose to 3.34 MT against 3 MT in May 2025. However, overall sales volume for the company declined 6.9% to 4.04 MT compared to 4.34 MT recorded during the same period last year.
The positive production numbers lifted investor sentiment, pushing NMDC shares to an intraday high of Rs 97.24 on the NSE.
- Motilal Oswal Maintains ‘Buy’ Rating
Brokerage firm Motilal Oswal Financial Services has reiterated its ‘Buy’ rating on NMDC with a target price of Rs 106, indicating an upside potential of over 15% from current levels.
The brokerage highlighted the company’s strong quarterly earnings and healthy volume growth as key reasons for its positive outlook. Management has guided for production volumes to reach 60 million tonnes in FY27, supported by higher environmental clearance limits and the commencement of production from a new joint-venture mine.
According to the brokerage, demand from domestic steel manufacturers is expected to remain strong, supporting both production volumes and pricing over the next few years.
- Expansion Plans to Drive Long-Term Growth
NMDC is aggressively expanding its capacity through a robust capital expenditure pipeline focused on evacuation infrastructure, mining efficiency and production enhancement projects. The company aims to increase its annual production capacity to 100 million tonnes by FY30.
In addition to iron ore, NMDC is exploring diversification opportunities in coking coal, non-coking coal, critical minerals and rare earth elements. These new business segments could become important contributors to future revenue growth and profitability.
- Strong Q4 Performance
The company delivered an impressive financial performance during the fourth quarter of FY26. Net profit surged to Rs 2,017.6 crore compared to Rs 1,483.2 crore in the corresponding quarter last year.
Revenue from operations jumped 62% year-on-year to Rs 11,343.1 crore, while EBITDA increased 29% to Rs 2,643.5 crore. However, EBITDA margins moderated to 23.3% from 29.3% due to higher operating costs.
- Stock Performance Remains Strong
NMDC shares have continued to outperform over multiple time frames. The stock has gained nearly 4% in the last five trading sessions, over 6% in the past month, and around 25% in the last six months. Over the past year, the stock has delivered returns exceeding 34%, reflecting strong investor confidence in the company’s growth trajectory.
With rising iron ore production, ambitious expansion targets and favorable demand conditions from the steel sector, NMDC remains one of the key PSU mining stocks to watch in the coming years.
Disclaimer : This article is for informational and educational purposes only and should not be considered investment advice. Investors should consult a qualified financial advisor before making any investment decisions.
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