NMDC shares declined 2.05% to ₹76.63 in Friday's trading session, despite the mining major reporting strong annual financial performance for the fiscal year ending March 2025. The stock, which is a constituent of the Nifty Midcap 150 index, faced selling pressure even as the company demonstrated robust operational metrics across key financial parameters.

Annual Financial Performance Shows Strong Growth

NMDC delivered impressive annual results for FY25, with significant improvements across revenue and profitability metrics. The company's financial performance demonstrates the strength of its mining operations and market position.

The company's net profit margin improved to 27.35% in FY25 from 26.14% in the previous year, indicating enhanced operational efficiency and cost management.

Quarterly Performance Shows Mixed Trends

While annual performance remained strong, quarterly results revealed some moderation in recent quarters. The revenue trajectory shows fluctuations across the recent quarters.

The quarter-ending September 2025 showed revenue of ₹6,378.11 crores compared to ₹6,738.85 crores in the previous quarter, representing a sequential decline.

Strong Balance Sheet and Financial Ratios

NMDC maintains a robust financial position with strengthened balance sheet metrics. The company's total assets grew to ₹41,006 crores in FY25 from ₹35,661 crores in FY24, reflecting expansion in operations.

The company maintained healthy liquidity with a current ratio of 2.42 times and low debt-to-equity ratio of 0.13, indicating strong financial stability.

Corporate Actions and Shareholder Returns

NMDC has been active in rewarding shareholders through various corporate actions and dividend distributions. The company announced significant corporate actions during the recent period.

Recent Corporate Actions:

• Bonus Issue: 2:1 ratio announced on November 11, 2024, with record date December 27, 2024
• Total Dividend FY25: ₹3.30 per share comprising interim dividend of ₹2.30 and final dividend of ₹1.00
• Previous Bonus: 2:1 ratio in December 2007
• Stock Split: Face value split from ₹10 to ₹1 in December 2007

The dividend yield and consistent shareholder returns reflect the company's commitment to sharing profits with investors while maintaining growth investments.

Market Valuation and Trading Metrics

Despite the recent price decline, NMDC's valuation metrics remain attractive compared to historical levels. The stock trades at a P/E ratio of 9.26 times and P/B ratio of 2.04 times as of FY25, indicating reasonable valuation levels for a mining company with strong fundamentals and consistent profitability.

NMDC has commenced mining operations at its Tokisud North Coal Mine in Jharkhand, marking a significant milestone in the company's coal mining expansion strategy. The facility is designed to achieve substantial production targets in the thermal coal segment.

Production Capacity and Specifications

The Tokisud North Coal Mine has been established with ambitious production goals. The following table outlines the key operational parameters:

Strategic Significance

The commencement of operations at Tokisud North represents NMDC's strategic focus on expanding its coal mining portfolio. With a targeted annual production of 2.30 million tons of thermal coal, this facility adds considerable capacity to the company's existing mining operations. The mine's location in Jharkhand positions NMDC advantageously within one of India's key coal-producing states.

Operational Milestone

The start of mining activities at Tokisud North Coal Mine demonstrates NMDC's commitment to scaling up its coal production capabilities. The facility's focus on thermal coal production aligns with the ongoing demand in the power generation sector. This operational commencement marks the transition from development phase to active production, representing a significant step forward in NMDC's coal mining operations.