NMDC Eyes Growth with Formula-Based Pricing & Higher Volumes in FY26

is planning a major shift by moving to a formula-based pricing model, which it believes could be a “game changer” for the company. This new approach is being tested in a few instances and aims to make prices more predictable and aligned with the market, especially at a time when global iron ore prices are under pressure. Despite this pricing challenge, NMDC is confident of maintaining a strong EBITDA margin of 42% in FY26, the same as in FY25, even though Q4 FY25 margins dropped to 29.28%. The company is focusing on increasing volumes to support profitability and has set a target of producing 55 million tonnes in FY26. NMDC currently operates with an environmental clearance (EC) limit of 53 million tonnes, which is set to increase by another 2 million tonnes soon, and the company aims to expand this to 82 million tonnes over the next 12–18 months by getting more approvals from Bailadila and Karnataka. On the receivables front, which currently stand at ₹6,500–7,000 crore, NMDC expects a significant improvement by the end of the year, as both RINL and , managed by the same group which,have recently turned profitable. While the exact impact of the new pricing formula on future prices is still unclear, the management remains confident that this combination of stable pricing, strong volume growth, and better receivable recovery will help the company stay on track in FY26. Follow me for more such posts, Thank You! Disclaimer: This post is for informational purposes only and not a recommendation to buy or sell any securities. I, or my family, associates, or relatives, may have a financial interest in the securities mentioned.