NMDC output rises 18% but iron ore sales fall 12%

Limited (NMDC) is in focus on November 3 after reporting an 18% year-on-year rise in October iron ore production to 5.04 million tonnes, while sales fell 11.6% to 3.44 million tonnes. The provisional data was filed on November 2. Production grew in both Chhattisgarh and Karnataka. But sales in Chhattisgarh fell to 1.90 million tonnes from 2.77 million tonnes, outweighing higher Karnataka sales of 1.54 million tonnes. For April to October, production rose 22.1% to 32.32 million tonnes, while sales eased 1.7% to 25.67 million tonnes. Strong production growth shows NMDC’s mines are running well, and capacity is clearly not the constraint. Karnataka is performing on both output and sales. The problem is that revenue comes from sales, not production. Over the first seven months of FY27, NMDC produced about 6.65 million tonnes more than it sold, so inventory is piling up. Chhattisgarh sales alone fell about 31% in October. The company has not explained the gap, which could point to weaker steel-sector demand or logistics issues. The stock is down about 11% over the past year. Investors should watch monthly sales volumes, Chhattisgarh demand and dispatch trends, iron ore price changes, and inventory levels. The key question is whether NMDC can sell its higher output without cutting prices. Disclosure: I do not hold any position in NMDC Limited. This post is for informational purposes only and is not investment advice.