NMDC Limited has revised the prices of iron ore effective June 3, 2026. The company fixed the price of Baila Lump (65.5%, 10-40 mm) at ₹5,700 per ton and Baila Fines (64%, -10 mm) at ₹4,850 per ton. This revision impacts the cost structure for buyers in the steel and mining sectors, as the new rates are now in force.

The disclosed prices are FOR (Free on Rail) prices and exclude various statutory levies. These exclusions comprise Royalty, District Mineral Foundation (DMF), National Mineral Exploration Trust (NMEDT), Cess, Forest Permit Fee, transit fee, GST, environmental Cess, and other taxes. The final cost to the purchaser will be higher once these additional charges are applied.

Revised Price Structure

The following table outlines the specific prices fixed by NMDC Limited for the different grades of iron ore:

The notification was submitted to the exchanges in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information has also been made available on the company's official investor relations portal.

NMDC Limited has outlined its strategy to achieve a production capacity of 100 million tons by the end of the decade, following a strong performance in FY26 where it produced 53 million tons. The company reported an 11% growth in Profit After Tax (PAT) and sales revenue of INR31,000 crore. To support this expansion, NMDC plans to nearly double its capital expenditure to approximately INR6,000 crores in the current financial year, with further increases expected in the coming years to fund capacity expansion projects and potential overseas acquisitions.

Operational Performance and Guidance

For FY26, NMDC surpassed the 50 million ton production mark, achieving 53 million tons. The company has set a production target of 60 million tons for FY27. This growth is expected to be driven by increased output from existing mines such as Deposit 14, NMZ, and Kumaraswamy, as well as contributions from new mines like Deposit 4 and Deposit 13. Management stated that all mines, except Deposit 5, have touched their Environmental Clearance (EC) capacity, a unique feat in the Indian iron ore industry.

Expansion Projects and Capex

The company is actively executing several expansion projects to reach its 100 million ton goal. Key initiatives include the opening of Deposit 4 in Bailadila, with commercial mining expected to commence in July, and Deposit 13, which is slated to start operations in Q2. Additionally, NMDC is expanding its coal mining footprint with the Tokisud and Rohne blocks in Jharkhand. Tokisud is set to begin production this month, while Rohne is expected to start operations by the end of Q3.

Strategic Diversification and Future Plans

NMDC is diversifying its portfolio beyond iron ore into coal and critical minerals. The company has opened a subsidiary dedicated to rare earths and is pursuing asset acquisitions abroad, with an estimated investment of INR2,000 crores to INR3,000 crores planned for the current year. Furthermore, the Board has sanctioned an investment of INR3,000 crores to establish a blending yard at Vizag to produce branded iron ore, which is expected to be a game-changer for the company and the domestic market.

Financial Outlook

Management expressed confidence in maintaining EBITDA margins around 42-43% for the current financial year, despite potential cost pressures from wage revisions, citing efficiency gains that have reduced production costs. The company intends to fund its capex and acquisition requirements primarily through internal accruals, maintaining a comfortable net debt position. NMDC also clarified that the trading of HR coils undertaken in the previous quarter to support NMDC Steel was a one-time measure and is not expected to continue significantly in the current year.