NMDC Ltd Management Discussions

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

FY 2025-26

1. NMDC: An Overview

1.1. Introduction

NMDC Limited, established in November 1958, plays a pivotal role in the Indian mining and minerals sector. The company produces high-quality iron ore with a premium grade of 64% Fe and maintains a strong financial position, enabling significant investment capacity. More than 67 years of its experience, NMDC has successfully navigated challenging terrains and difficult market conditions and is continuously expanding its global reach. Strategically located near key demand centers, NMDC operates with one of the lowest cash costs (C1) in the industry, making it highly competitive against global counterparts in the iron ore business.

NMDC, Indias largest iron ore producer, continued its strong performance during FY 2025-26, becoming the first iron ore mining company in the country to surpass the 50 million tonne milestone. The Company achieved its highest-ever annual iron ore production of 53.15 million tonnes during the year, reaffirming its leadership position in the Indian mining sector.

NMDCs coal blocks in Jharkhand are ready for production, as operations have started in Tokisud North coal block from January 2026 & Rohne coal block is expected to start its operations very soon, marking another historic first for NMDC as it marks its venture into domestic coal mining.

NMDC has set ambitious targets to achieve iron ore production of 60 million tonnes in FY 2027 with the ultimate goal of reaching 100 million tonnes by 2030. This endeavor will involve substantial capital investments to expand and enhance the companys mining capabilities and infrastructure, along with a special focus of sustainability, society & environment. Additionally, the company plans to diversify into minerals other than iron ore, which are essential for the energy security and net-zero ambitions of the country.

NMDC is dedicated to optimizing its operations and innovating processes to enhance efficiency throughout the organization. The company is continuously working to digitalize its processes, which improves the functioning and management of its activities. Furthermore, NMDC regularly reviews its operational strategies to increase productivity, reduce waste and improve overall performance, ensuring it remains competitive and efficient in its sector. In FY26, NMDC has recorded a revenue from operations of Rs.31,554 crores, with a rise of 33% over last year. The Company recorded a Profit (before tax) of Rs.10,155 crores in FY26 and a net worth of Rs.33,836 crores (as of 31.03.2026). NMDC has a rich history of rewarding investors with dividends. The Company declared an Interim dividend of 2.50 per share during the financial year 2025-26 and has recommended payment of final dividend of 1.00 per share, subject to the approval of shareholders in ensuing AGM.

Looking ahead, NMDC remains committed to creating long-term value for all its stakeholders. Beyond financial returns, NMDC places a high priority on the socio-economic development of communities surrounding its mining operations. These efforts highlight NMDCs dedication as a responsible corporate entity, emphasizing inclusive growth and sustainable development.

1.2. Operating Projects

NMDC operates three highly-mechanized iron ore mine complexes in the states of Chhattisgarh and Karnataka. Two of the complexes are located in Dantewada (Chhattisgarh), namely Kirandul Complex and Bacheli Complex, that produced around 37.5 MTPA in FY26. The third complex in Bellary (Karnataka), namely, Donimalai Iron Ore Complex produces 15.6 MTPA in FY26 (from the two pits- Kumaraswamy & Donimalai). NMDC also has a 1.2 MTPA pellet plant at Donimalai.

NMDC also operates the Diamond Mining Project, Panna (M.P.), which is the only mechanized diamond mine in Asia.

1.3. Global Presence

Legacy Iron Ore Limited, Perth, Australia

Legacy Iron Ore Ltd. (Legacy) is an ASX-listed mineral resources company based in Perth, Western Australia, focusing on gold, iron ore and base metals. NMDC has 92.84% equity in the company. Legacy holds 25 prospective tenements across its Mount Bevan, South Laverton and East Kimberley project areas in Western Australia. The tenements are in various stages of exploration for a host of commodities, including iron (1), gold (20), base metals and tungsten (4).

The Mount Bevan Project in Western Australia is of strategic importance to Legacy. It endows a significant magnetite Mineral Resource of 1.29 billion tonnes at 33.50% Fe (JORC Inferred & Indicated). Legacy signed a Joint Venture (JV) Magnetite Agreement with Hancock Prospecting Ltd (Hancock) to complete a pre-feasibility study (PFS). Under this arrangement, Hancock has completed the PFS studies. After completing of the prefeasibility studies (PFS), the shareholding in JV changed to Legacy 29.4%, Hancock 51% and Hawthorn Resources 19.6% interest in Mount Bevan JV.

After completion of PFS, Hawthorn Resources opted to exit with royalty option and accordingly the shareholding in JV changed to Legacy 36.57% & Hancock 63.43%.

Mount Bevan is progressing in DFS study through activities aimed at further defining, optimising and de-risking the project, with successful completion it is expected to support advancement toward a Financial Investment Decision.

Under the Mt Bevan Lithium & Other Minerals Joint Venture of Hancock & Legacy signed in June 2023, Hancock earned an initial 7.5% interest through an upfront payment of AUD 4 million to Legacy (60%) and Hawthorn (40%). During Stage I exploration, 7,731 metres of RC drilling were completed, with the results indicating that several pegmatites were intersected, although they exhibited only weak lithium enrichment. Following the completion of Stage I expenditure commitments, the current shareholding stands at Hancock 15%, Legacy 51% and Hawthorn 34%. As per agreement, Hancock Prospecting has submitted a notice and royalty deed for their election to convert their 15% participating interest in the Mt. Bevan other minerals JV into royalty.

The South Laverton Project of Legacy includes Mount Celia, Yilgangi, Yerilla and Patricia North gold assets. Mining Lease for Mount Celia Gold Project has been granted by the Western Australian Department of Mining Industry Regulation and Safety (DMIRS) in the first half of 2023.

Legacy has commenced Gold mining operations in Mt. Celia Gold Project on 05.11.2023 and first sale of ore has been done in March 2024. Legacy has entered into an Ore Purchase Agreement (OPA) with Paddington Gold Pty Ltd for sale of ore. Subsequently, Legacy has entered into a right to mine agreement with BGR mining wherein BGR is funding the operational expenses and the profits will be shared as per the agreed terms. The mining and development activities under Right to Mine Agreement ceased from Dec 2025 and ancillary activities such as ore haulage to mill and road maintenance are completed on 22.02.2026.

Further, Mount Celia has a declared updated JORC resource of 8.8 million tonnes @ 1.38 g/t with 390K ounces of contained gold, in April 2026.

The Patricia North, Yilgangi, Sunrise Bore and Yerilla tenements remain at various stages of exploration maturity across Western Australia. Patricia North was granted a two- year extension in December 2025.

At Yilgangi, geophysical desktop studies, UAV drone magnetic surveys, data acquisition and geophysical interpretation were completed, with the survey results announced to the ASX in April 2026.

At Sunrise Bore, field investigations and sample collection were completed to support the tenement extension process, with the extension application scheduled for submission in June 2026. Future exploration activities at the project will be guided by the outcomes of heritage surveys and sampling results.

At Yerilla, heritage-related consultations with relevant stakeholders are in progress. Minimum commitment exploration works, including geological mapping and sampling, have been completed for the Kimberley tenements (Koongie Park, Sophie Downs, Taylor Lookout and Ruby Plains).

International Coal Ventures Pvt. Ltd. (ICVL)

International Coal Ventures Pvt. Ltd. (ICVL), a joint venture company of SAIL, RINL, NMDC, CIL & NTPC, acquired coking coal asset in Mozambique in 2014 and operation of the same was taken over by ICVL. NMDC holds 25.94% stake in ICVL. Benga mine, the operational asset of ICVL, could not produce coal in FY 2025-26 due to termination of coal mining operation services contract and delay in mobilization & ramp up by the new mining contractor. However, it managed to export 0.49 million tonnes of Coal (0.02 million tonnes of Coking Coal + 0.47 million tonnes of Thermal Coal) during the FY 2025-26.

1.4. Growth Plan

• NMDC has made a comprehensive - plan to enhance its iron ore production capacity to 100 MTPA by FY30 to meet the growing requirements of iron ore in the Indian Steel sector. The strategy focuses on growth largely through brownfield expansion of existing mines and improving the evacuation infrastructure.

• NMDC is also expanding through the development of Deposit-13 & Deposit-4 (greenfield projects), under a Joint Venture company of NMDC Limited and Chhattisgarh Mineral Development Corporation (NCL). Deposit-4 iron ore mine has been inaugurated & operations have started in March 2026 while operations are expected to begin soon in Deposit-13 iron ore mine.

• In line with the Vision Plan 2030 for achieving 100 MTPA production capacity, NMDC has undertaken several production augmentation and evacuation infrastructure projects. In addition, development of new deposits and OCSL plant facilities has also been envisaged to support the targeted capacity expansion.

• To augment the evacuation capacity from the Bailadila sector, many projects & schemes are being taken up like doubling of KK line, Slurry Pipeline, etc. Doubling of KK line is being executed by Railways as deposit work is in full swing and few completed sections have been opened for traffic. Out of 150 km of planned doubling of railway line, 140 km has already been completed & the project is likely to be completed by October 2026. The completion of this project will augment the evacuation capacity of the Bailadila sector through the Railway line to 60 MTPA.

• NMDC is in the process of setting up a Slurry Pipeline, along with an associated beneficiation plant & pellet plant, in phases, for economical transportation of iron ore to locations from where the pellets/ore can be supplied to the industry. The overall progress of the project is 94% as on 31.03.2026 and expected to start in 2026.

• Activities for Phase-1 of Slurry Pipe Line including 2 MTPA capacity Ore Processing Plant (OPP) at Bacheli, 15 MTPA capacity Slurry Pipeline System (130 km) from Bacheli to Nagarnar and 2 MTPA capacity Pellet Plant at Nagarnar, are under progress. The first phase of project is likely to be completed in 2026. As on 31.03.2026, out of 135.3 km, 134.28 km of pipeline laying has been completed.

• Ministry of Coal has allocated two Coal Blocks namely Tokisud North Coal block & Rohne Coal Block on 17.03.2020 for commercial sale & captive purposes. NMDC has appointed MDO for Tokisud North Coal Block which has started its operations from January 2026 and plans to start operations from Rohne coal block soon.

• NMDC has established an intermediate iron ore stockyard at Kumar Marenga, Chhattisgarh, to facilitate uninterrupted supply to customers. The facility became operational in FY 2022-23. Building on this initiative, NMDC plans to develop similar stockyard and blending yard facilities across the country with enhanced capacities, aimed at ensuring a reliable & consistent supply of quality iron ore to customers.

• NMDC is pursuing the allocation of new iron ore deposits both through participation in auction and reservation through government dispensation route - (section 17A(2A) of the revised MMDR Act, 2015) for further expansion in capacity.

• As part of the thrust to tap renewable energy sources, NMDC installed wind energy of about 10.5 MW at Chitradurga, Karnataka State and a 1.5 MW rooftop power plants in various production units.

1.5. Exploration & Reserve Estimation:

NMDC has a dedicated exploration wing at Raipur, fully equipped to undertake the exploration of minerals. NMDC has conducted more than 12,000 meters of core drilling in FY26 at existing mines. Besides, it has also established a well- equipped Centre for Geostatistics and has a Remote sensing lab at Corporate Office, Hyderabad. NMDC has fullfledged mine planning wings at Corporate office as well as at project sites for orebody modelling, reserve estimation, pit design & scheduling, with advanced software like Surpac, Whittle & Minesched.

Estimated resource as on 31.03.2026 was 3.15 billion tonnes including resources under NCL (NMDC-CMDC Ltd).

1.6. Research & Development:

NMDC operates a state-of-the-art Research & Development (R&D) Centre at Hyderabad, which has been declared a "Centre of Excellence" by the United Nations Industrial Development Organization (UNIDO). The NMDC R&D Centre is dedicated to undertaking product and technology development projects related to ores, minerals and ironmaking to maintain excellence in process performance and operational efficiency. The Centre has made significant contributions not only to NMDCs operating projects but also to Indian industries and is recognized by the Department of Scientific and Industrial Research (DSIR).

The R&D Centre undertakes a wide range of projects aimed at mitigating operational challenges across NMDCs units and providing innovative solutions through process improvements, technology upgrades and sustainable practices, thereby ensuring continual enhancement of operational performance. The Centre also extends technical and analytical services to external agencies.

The Centre specializes in mineral processing, beneficiation, pelletization studies, process flowsheet development, mineralogical studies, material handling and storage, metallurgical studies of iron ore and coal, chemical analysis and process improvement. It has extensive experience in the fields of mineral beneficiation and pelletization. To further enhance its capabilities, the Centre is developing facilities for dry beneficiation, which will enable environmentally friendly and water-efficient processing of low-grade ores and mineral resources.

Recognizing the growing strategic importance of critical minerals, the R&D Centre is also developing advanced facilities for characterization, testing and analysis of critical minerals and associated materials. These facilities will support research in minerals essential for clean energy technologies, advanced manufacturing, electronics and national resource security.

The Centre is equipped with state-of-the-art laboratory and pilot-scale facilities for the analysis of various types of minerals. In addition, NMDCs R&D Centre actively undertakes collaborative research with leading national and international research institutions, universities, laboratories and industry partners to develop practical solutions that can be effectively implemented in the industry.

2. Industry Structure & Developments 2.1. Economic Overview 2.1.1. Global Economy

Global economy has been facing major headwinds due to ongoing conflict in the Middle East and associated supply chain disruptions. The IMF in its World Economic Outlook update released in April 2026 has projected global GDP to grow at 3.1% in 2026 & 3.2% in 2027 against a growth of 3.4% in 2025. It has also highlighted the fact that the slowdown in growth and increase in inflation are expected to be more pronounced in emerging and developing economies¹.

Meanwhile, headline inflation is expected to rise to about 4.4% in 2026 as compared to 4.1% in 2025. Under severe scenarios (assuming energy market dislocations extending to next year), IMF predicts that the headline inflation can go as high as 6% & global economy can come close to experiencing a recession with growth of around 2%.

Overview of World Economic Outlook Projections (GDP Growth %)

Region/Country	2025	2026P2	2027P1
World	3.4	3.1	3.2
Advanced Economies	1.9	1.8	1.7
United States	2.1	2.3	2.1
Euro Area	1.4	1.1	1.2
Japan	1.2	0.7	0.6
UK	1.3	0.8	1.3
Canada	1.7	1.5	1.9
Emerging market & developing economies	4.4	3.9	4.2
Russia	1.0	1.1	1.1
China	5.0	4.4	4.0
India	7.6	6.5	6.5
Brazil	2.3	1.9	2.0

Source: IMF

2.1.2. Indian Economy

India continues to remain one of the fastest-growing major economies globally, supported by strong domestic demand, prudent macroeconomic management and sustained policy reforms. Despite a challenging global environment characterized by geopolitical uncertainties, trade disruptions and financial market volatility, the Indian economy has demonstrated remarkable resilience and is expected to maintain its growth momentum during FY 2026-27.

As India enters FY27, the economic environment faces headwinds from growing tensions in the Middle East and trade policy uncertainty. However, the broader trajectory is expected to remain resilient. According to estimates by the Reserve Bank of India (RBI), Indias GDP growth is projected at 6.6% in FY 2026-27³, reinforcing its position as a key driver of global economic growth.

The Governments continued emphasis on capital expenditure, logistics enhancement, digital infrastructure, renewable energy and industrial competitiveness is expected to strengthen the countrys long-term growth prospects. Initiatives such as the National Manufacturing Mission, Production Linked Incentive (PLI) schemes, PM Gati Shakti and Make in India are fostering domestic manufacturing capabilities and improving Indias attractiveness as a global investment destination.

Inflationary pressures have intensified amid rising global energy prices and supply-side disruptions. The Reserve Bank of India (RBI) has revised its FY27 Consumer Price Index (CPI) inflation forecast upward to 5.1% from 4.6%⁴, reflecting the impact of elevated crude oil prices and global supply constraints. Higher energy costs are exerting adverse spillover effects on the economy by increasing transportation, logistics and production costs across sectors. The countrys external sector remains resilient, underpinned by healthy foreign exchange reserves - $ 682.3 billion as on 29.05.2026⁵.

India remains a leading destination for global investment, supported by a liberal and business-friendly FDI framework. The country permits 100% foreign ownership in most sectors through the automatic route, encouraging investor confidence. As a result, foreign direct investment (FDI) inflows reached USD 94.53 billion in FY 2025-26 — exceeded the previous record of USD 84.84 billion in FY 2021-22. However, net FDI inflows stood at USD 7.7 billion, as a significant portion of inflows was offset by higher repatriation of investments by foreign companies and increased overseas investments by Indian corporates⁶. Nevertheless, the strong growth in gross FDI underscores Indias continued attractiveness as a lucrative investment destination.

Indias export sector continued to demonstrate resilience in FY 2025-26 despite ongoing geopolitical tensions and subdued global demand. Total merchandise and services exports reached USD 860.09 billion in FY 2025-26, up 4.22% from USD 825.26 billion in FY 2024-25⁷. The growth was supported by robust services exports and the rising contribution of high-value manufacturing sectors, reflecting improving competitiveness, diversification of export markets and deeper integration with global value chains.

The countrys export sector continues to benefit from expanding manufacturing capabilities, a competitive services industry and growing participation in high- value sectors such as electronics, engineering goods, pharmaceuticals and defence manufacturing. At the same time, strong domestic demand and rapid urbanisation are expected to support sustained growth across infrastructure, construction, automotive and capital goods sectors.

With favourable demographics, a rapidly expanding digital economy, ongoing structural reforms and a strong focus on sustainable and inclusive development, India remains well-positioned to sustain robust economic growth over the medium term and strengthen its role as a leading global economic powerhouse.

2.2.Industry Overview

2.2.1 Global Steel Industry

Global crude steel production softened in 2025 at 1,849 million tonnes⁸, ~ 5.8% below the peak global output of 1,963 million tonnes in 2021⁹. Key producers - including China, Japan, Russia and South Korea- recorded declines while India and the US recorded increase in crude steel production by 10.4% & 3% respectively.

In 2025, Chinas steel exports increased by 14.1%, reaching 133.6 million tonnes from 117.1 million tonnes in 2024. Global apparent steel use has declined from 1,751 million tonnes in 2024 to 1,718 million tonnes in 2025¹⁰. Building and infrastructure sector contributed 52% to the global steel use, followed by mechanical equipment at 16% and automotive at 12%¹¹.

The World Steel Association forecasts that global demand is expected to grow by 0.3% in 2026 as well as 2.2% in 2027¹². It projects a turnaround in steel demand across developed economies, including the European Union, the US, Canada, Japan and Korea. Steel demand growth in developing economies except China is expected to grow at reduced rate of 2.5% in 2026 as compared to 5% annual growth in recent years¹³ owing to the ongoing conflict in the Middle East.

Country	Crude Steel Production	Crude Steel Production
	2025 (MT)	2024 (MT)
China	961	1005
India	165	149
Japan	81	84
United States	82	80
Russia	68	71
South Korea	62	64
Germany	34	37
Turkiye	38	37
Brazil	33	34
Iran	32	31
Others	293	295
World Total	1849	1887

Source: WSA

Note: India steel production in above table is based on calendar year.

2.2.2 Indian Steel Industry

Indias steel industry continued its strong growth trajectory in FY26, supported by robust domestic demand from infrastructure, construction, manufacturing, automotive and capital goods sectors. Crude steel production increased to ~168 million tonnes during FY26¹⁴, registering a growth of around 10.7% over the previous year, while finished steel consumption rose by 7-8% to about 164 million tonnes¹⁵. The sustained growth in steel consumption reflects the continued momentum in economic activity and the Governments focus on infrastructure development.

Driven by robust domestic demand, Indian steelmakers continued to expand their capacities during FY26, increasing the countrys total installed steelmaking capacity to ~220 MTPA. These investments, coupled with the ramp-up of existing facilities, further strengthened Indias position as the worlds second-largest crude steel producer. Despite this progress, per capita steel consumption in India reached 109 kg in 2025¹⁶, well below the global average of 209 kg in 2025¹⁷, underscoring considerable headroom for long-term demand growth. To unlock this potential, the country has set an ambitious target of raising per capita steel consumption to 160 kg by FY31¹⁸.

The growth in steel production was accompanied by higher iron ore output, which crossed the 300 million tonne mark during FY26. As Indias largest iron ore producer, NMDC continued to play a pivotal role in supporting the countrys growing steel industrys iron ore demand. The Company achieved a historic milestone by becoming the first mining company in India to surpass the 50 million tonne annual production mark, recording its highest-ever iron ore production of 53.15 million tonnes, a growth of 21% over the previous year.

On the trade front, FY26 marked a significant turnaround as India regained its status as a net exporter of finished steel. Finished steel exports increased to around 6.6 million tonnes with a surge of 35.9%, while imports declined sharply by 31.7%¹⁹. The improvement was supported by stronger export demand from key markets in West Asia, Europe and Southeast Asia, coupled with policy measures aimed at safeguarding domestic industry interests. During the year, the Government imposed a 12% safeguard duty on select steel products to address the surge in low-priced imports and support domestic producers²⁰.

However, iron ore exports declined by ~13% to 26 million tonnes, while imports surged by more than 70% to 12 - 12.5 million tonnes²¹ as iron ore production growth lagged the steel output growth.

Looking ahead, the outlook for the Indian steel sector remains positive, driven by sustained investments in infrastructure, urbanisation, housing, transportation and renewable energy projects. Government initiatives such as PM Gati Shakti, National Infrastructure Pipeline, PM Awas Yojana and continued investments in railways, roads and logistics are expected to support long-term steel demand growth.

3. NMDC - Opportunities & Threats

a) Opportunities

i) Envisaged growth in domestic steel production on account of the factors mentioned below would lead to higher demand for Iron Ore in the country:

• Infrastructure and capital expenditure spending by the Government of India remains at a record high, with the Union Budget FY27 proposing capital outlay above 12.2 lakh crore. Construction, infrastructure and real estate continue to account for over 60% of domestic steel consumption and are expected to boost the iron and steel sector demand in India.

• Indias per capita steel consumption at approximately 109 kg remains well below the world average of ~209 kg²², providing substantial headroom for growth. Increasing urbanization, expanding rural infrastructure, multiple key initiatives by the government along with a host of consumption enablers are expected to drive up the steel demand in key end-use sectors. Government initiatives for Self-Reliant India creating new avenues to set-up new industries is leading to demand in iron and steel.

• The Production-Linked Incentive (PLI) Scheme for Specialty Steel in India expands on the original 2021 framework (PLI 1.0) through subsequent phases like PLI

1.1 and PLI 1.2. It aims to boost domestic value-added steel manufacturing, reduce import dependence and offer financial incentives ranging from 4% to 15%. PLI

1.2 was launched on 04.11.2025, covering 22 product sub-categories under four product categories, namely: (i) Steel Grades for Strategic Sector, (ii) Commercial Grades - Category 1, (iii) Commercial Grades - Category 2 and (iv) Coated & Wire Products. The scheme offers incentive rates ranging from 4% to 15% for a period of five years, commencing from FY 2025-26, with incentive disbursement starting from FY 2026-27. The Production Linked Incentive (PLI) scheme for specialty steel continues to attract investment, with committed capex from major steel producers, directly expanding the iron ore demand base.

• Government initiatives including Make in India 2.0, the semiconductor and electronics manufacturing push and the defence indigenization programme are attracting new industrial capacities that create downstream demand for steel and by extension, iron ore.

• Rising vehicle production, including electric vehicles (EVs), is expected to increase demand for high-strength and specialized steel grades. Expansion of solar, wind, transmission infrastructure and energy storage projects requires significant quantities of steel. Dedicated freight corridors, multimodal logistics parks and port modernization can reduce transportation costs and improve competitiveness.

• Indias target of 300 MTPA domestic steel capacity by 2030-31, as envisaged in the National Steel Policy, provides a long-term structural demand anchor for NMDCs high-grade ore. NMDCs ore is among the highest-grade lump ore available globally, positioning the company favourably as steelmakers optimise blast furnace burdens.

ii) Favourable macroeconomic and policy environment supports medium-term growth:

• IMF projects Indias GDP growth at 6.5% in FY2 6 ²³, sustaining Indias position as the fastest-growing major economy and driving steel-intensive investment in infrastructure, manufacturing and housing.

• PM Gati Shakti - the National Master Plan for multi-modal connectivity, is creating new logistics corridors that will reduce transportation costs and improve NMDCs mine- to-market economics.

iii) Provisions under MMDR Act with various amendments such as grant/extension of mining lease for the government companies on the payment of additional revenue, transfer of statutory clearances valid till the expiry of ML will give NMDC competitive advantage over others.

iv) Development of National Mineral Index could help in further driving the profitability and investments in metal mining sector.

b) Threats

i) Geopolitical instability, including the ongoing tensions in the Middle east & Russia-Ukraine conflict has created uncertainty in global commodity markets, supply chains and shipping costs, all of which can influence iron ore price benchmarks and trade flows.

ii) Rising fuel cost due to supply shocks can impact margins as a significant proportion of mining fleet is diesel operated. Apart from fuel, supply chain disruptions may also delay scheduled import of equipment & HEMMs for operations, leading to delay in expansion projects.

iii) Rising inflation can impact consumption and lead to fiscal tightening increasing the cost of borrowings affecting investments.

iv) Allocation of iron ore blocks through Auction in Bailadila to players other than NMDC may exert pressure on already strained evacuation channels from the area.

v) Uncertainty in export duties of iron ore, pellets can lead to volatility in the prices of iron ore, further leading to reduced iron ore demand.

vi) Demand for Iron ore may fall in the international market in long term due to the decline in the Chinese steel production and shift towards EAF/IF route for recycling scrap steel.

vii) New iron ore leases being auctioned and the amendments to MMDR Act allowing sale of all the iron ore production of captive mines in open market, after meeting their demand, is creating increased supply and competition in the market.

viii) Indian iron ore industry will continue to be uncompetitive on a global level due to higher rates of royalty and other levies such as DMF, NMET, Export duty etc. as well as significantly higher logistics costs.

ix) Potential adoption of state-level levies such Mineral Bearing Land and Mineral Rights Taxes could significantly increase statutory costs and adversely impact mining project economics.

x) Increasing regulatory pressure on environment, health & safety and sustainability.

NMDCs business would continue to be affected by developments impacting the demand-supply scenario & price fluctuations of iron ore in both the global and domestic markets.

23 IMF World Economic Outlook I Apr26

4. Segment-wise or Product wise performance

4.1 Physical Performance of NMDC

Details	2021-22	2022-23	2023-24	2024-25	2025-26
Production:
Production of Iron Ore WMT (In lakh tonnes)	421.88	408.17	450.22	440.72	531.58
Production of Sponge Iron (tonnes)*	NIL	NIL	NIL	NIL	NIL
Production of Diamonds (carats)	NIL	NIL	295.61	4,602.03	8,278.57
Production Pellets (tonnes) Domestic	1,82,299	2,02,330	2,63,053	1,70,605	1,02,550
Pellets through Job Work (tones)	-	-	-	5,91,901	26,73,000
Sales:
Sale of Iron Ore (in lakh tonnes)	406.68	382.23	444.81	444.04	502.39
Sale of Diamonds (carats)	25,218.95	NIL	NIL	NIL	NIL
Sale of Sponge Iron (tonnes)	NIL	NIL	NIL	NIL	NIL
Sale of Pellets (tones) - Domestic	1,96,972	1,88,988	2,40,126	2,15,511	16,28,242
Sale of Pellets (tones) - Export	-	-		4,80,308	12,42,317.93

4.2 Financial Performance of NMDC

					( inCr.)
Details	2021-22	2022-23	2023-24	2024-25	2025-26
Sale of Iron Ore	25,629.72	17,447.39	21,049.47	22,803.40	24,723.45
Sale of Diamonds	62.93	-	-	-	-
Sale of Wind Power	4.99	6.08	6.25	6.46	731
Sale of Sponge Iron	-	-	-	-
Sales- Pellet (Domestic)	222.11	165.50	232.40	206.55	1,722.96
Sales- Pellet (Export)	-	-	-	448.19	1,13733
Sales HR Coil	-	-	-	198.98	3,960.86
Sales - Others	45.04	47.91	5.69	4.74	1.79
Turnover	25,964.79	17,666.88	21,293.81	23,668.32	31,553.70
EBITDA	13,348.36	8,047.25	8,427.27	9,846.86	10,73738
PBT	13,022.45	7,636.61	8,011.98	9,296.43	10,155.12
PAT	9,447.59	5,528.63	5,631.89	6,692.60	7,421.24
Dividend*	4,319.72	1,934.21	2,124.70	2,901.30	3,077.14
Dividend as % of PAT	46%	35%	38%	43%	41%

* The Company paid Interim Dividend @ Rs.2.50 per Share and declared Final Dividend of Rs.1.00 per share for the Financial year 202526 which is to be paid after AGM.

5. Outlook for NMDC

NMDC proposes to augment its production capacity of iron ore to 100 MT by FY30. It has also embarked on value addition projects by setting up a 1.2 MTPA pellet plant utilizing slimes in Karnataka NMDC-CMDC Limited (NCL), a JV company of NMDC Limited & CMDC Limited, has inaugurated & started operations at Deposit-4 in March 2026 and is expected to begin operations at Deposit-13 soon. NMDC has also developed an intermediate stockpile at Kumar Marenga near Jagdalpur to ensure an uninterrupted supply of ore to the customers. To augment evacuation capacity, NMDC is supporting the doubling of K-K line (Kirandul- Kotvatsala), constructing Slurry Pipeline, etc.

NMDC has further diversified its business by beginning operations in one of its Coal Mine block, namely Tokisud North, Jharkhand in January 2026. Actions to operationalize the other allocated Coal Block, Rohne, are underway.

NMDC has prepared its Diversification & International Expansion Strategy to venture into various identified minerals & geographies & will continue to look for opportunistic assets based on the recommendation & strategy in the formulated report. NMDC is reviewing various mineral asset projects in Africa, South America, MENA region etc as per the strategy. NMDC has opened its offices in Dubai, UAE and Sydney, Australia to give thrust on mineral scouting abroad.

NMDC is committed to focusing on maintaining cost competitiveness in the global and domestic markets in a scenario where prices are expected to remain subdued. Further, NMDC is taking various initiatives towards automation & digitization of its operation to further improve its cost competitiveness.

Along with robust strategic planning to support its growth agenda, NMDC continues to enhance organizational capabilities and other enablers to achieve its short-term and long-term objectives.

6. Risks and Concerns

Geopolitical unrests like ongoing fights in the Middle East and the Russia-Ukraine war have created uncertainty in global commodity markets. It is pushing up shipping costs, raising fuel prices for mining fleets and causing supplychain delays that postpone equipment and HEMM imports. This is a matter of concern as it can affect input costs, ironore price benchmarks and trade flows. Any slowdown in domestic or global steel production due to economic downturns, trade restrictions, or reduced infrastructure spending may adversely affect iron ore demand.

NMDC is exposed to sharp fluctuations in demand for its products and volatility in prices. Falling prices of iron ore, especially in international market will support the import by the steel players & exert pressure on domestic supply & prices. Fluctuations in international iron ore and steel prices can impact revenue realization and profitability.

Timely enhancement of evacuation capacity in line with production plans also remains a potential concern. New players getting ore block allocation in the Bailadila region could impact production and inventory levels for NMDC.

Introduction of Auction rule has increased risks for NMDC as its major customers have acquired captive mines in mineral- rich states, mainly JSW & AM-NS. Both JSW & AM-NS are increasing production from newly acquired mines & planned to focus on other supply sources. This is likely to impact the market for NMDC over the medium to long term.

In April 2026, the Government amended the Mineral Concession Rules to introduce a discounted pricing mechanism for subthreshold iron ore (below 45% Fe). By pegging the ASP of 35-45% Fe ore at 75% of the standard benchmark, the rule reduces the royalty burden and incentivizes the utilization of low-grade resources. Operationally, this requires allocation of additional on-site storage space to separate sub-threshold ore from actual mine waste for future beneficiation.

Increasing stakeholder focus on sustainability, carbon emissions, biodiversity conservation and responsible mining practices may necessitate additional investments and compliance measures.

With NMDC commencing Coal Mining from allocated blocks, the opening of the Coal sector for Commercial mining will increase the competition for NMDC in the short to medium term.

Increasing digitalization and interconnected operational systems expose the organization to cyber threats, data breaches and operational disruptions.

Despite these challenges, NMDC continues to strengthen its operationa l resilience throu gh resou rce expansion, digital transformation, sustainability initiatives, strategic diversification and prudent risk management practices, positioning the Company for sustainable long-term growth.

7. Internal control systems and their adequacy

Necessary disclosures in respect of Internal Control Systems and their adequacy have been made in Annexure-C to the Independent Auditors Report dated 29.05.2026 which forms part of the Annual Report.

8. Discussion on financial performance with respect to operational performance

During the year under review, the Companys revenue from operations increased by 33% from Rs.23668 crores to Rs.31554 crores mainly on account of:

• Increase in sales quantity by 58.35 LT compared to previous year from 444.04 LT to 502.39 LT.

• Other factors include Export of Pellet and Sale of HR Coil.

Details on the financial performance with respect to operational performance are given in detail in the Boards Report.

9. Material developments in Human Resources/ Industrial Relations front, including number of people employed.

NMDC is committed to providing a safe, secure and respectful work environment for all employees, with special emphasis on ensuring the dignity and protection of women at the workplace. The human capital of NMDC has been its key driving factor and its greatest asset.

The company has made concerted efforts in keeping the workforce highly engaged and motivated by providing adequate facilities for education, health, accommodation, recreation etc. across all projects. Also, sports activities at Project/Unit/Regional Office/Corporate Office levels were organized for employees and their wards to encourage participation in sports and recreational welfare activities.

During the last five years, the number of people on rolls as on 31^st March are as follows:

2021- 22: 5539

2022- 23: 5713

2023- 24: 5630

2024- 25: 5677

2025- 26: 5730

Keeping in view the various diversification projects like Pellet Plant etc., & expansion of existing projects, the Company has taken initiative to train its existing manpower and also to go for fresh induction.

Further, a total of 246 posts were filled through direct recruitment in FY 2025-26. All of them were provided on-the- job and off-the-job training in order to prepare them for taking up the challenges of working in NMDCs production projects, as well as the new ventures which the Company may like to take up. The further recruitment process is in progress for upcoming projects.

10. Details of significant changes in Key Financial Ratios:

Details of significant changes (i.e. changes in 25% or more as compared to the immediately previous financial year in key financial ratios):

1. Debt - Equity Ratio: 30.77 (PY NIL)

Increase in Short term borrowings: Short term working capital loan and Bill discounting for Rs.2,104 crore.

2. Inventory Turnover Ratio: 42.21 (PY 11.54)

Sharp increase in turnover with regard to trading in HR Coils and closing inventory is NIL.

11. Details of any change in Return on Net Worth as compared to the immediately previous financial year along with a detailed explanation thereof (For Standalone Basis)

	2025-26	2024-25	(% of Change)
Net Worth ( In crore)	33,836	29,579	14%
PAT ( in crore)	7,421	6,693	11%
Return on Net Worth	23%	24%	-4.17%

The Company has declared an Interim Dividend for FY 202526 @ Rs.2.50 per share in the month of February, 2026 and recommended a final Dividend @ Rs.1.00 per share in the month of May, 2026.

12. Sustainability

NMDC is publishing Sustainability Report as per the Global Reporting Initiative (GRI) Standards, capturing initiatives taken by NMDC over the years in Economic, Environmental and Social aspects. As the world is now traversing more uncertainty than ever, NMDC is focusing on building sustainable and resilient businesses to survive in the long run and to make a meaningful contribution to the battle against climate change through an increasing investing environment, social and governance (ESG) initiatives.

13. Environment:

• Environmental monitoring studies are conducted through recognized laboratories of MoEFCC/ CPCB, covering all environmental parameters. Based on the results of environmental monitoring studies, it is concluded that all environmental parameters are well within the limits during FY 25-26. A total of 14 nos Continuous Ambient Air Quality Monitoring Stations (CAAQMS) have been installed at Bacheli com plex (2 nos) , Kirandu l com plex (9 nos) and Donimalai complex (3 nos) for recording of Ambient air quality parameters such as PM10, PM2.5, SO2, NOx and CO in real time. ^•

• Every year Carbon Footprint studies are being conducted for disclosure of Greenhouse Gas Emissions under Carbon Disclosure Project (CDP). Water Audit is conducted at regular intervals at all projects of NMDC and recommendations of audit are being implemented to conserve water and to improve the efficiency of motors/pumps, arrest leakages, etc. Apart from this regular maintenance of water appurtenances is being done.

• Sustainable Mining Initiative audit is being done at all Iron Ore Mining projects of NMDC and recommendations are being implemented.

• The R&R works suggested by M/s Indian Council of Forest Research and Education (ICFRE, Dehradun) in the Environmental Management and Reclamation & Rehabilitation Plan for Kirandul Complex, Chhattisgarh and in Donimalai Complex, Karnataka are under implementation stage.

• R&D works in the field of air, water, solid waste etc. were undertaken by engaging institutes of repute such as ISM Dhanbad, NIT - Raipur and VNIT - Nagpur.

• The environmental pollution control works are undertaken such as de-silting of check dams/check bunds, tailing dams, construction of buttress walls at toe of waste dumps and geo-coir matting for stabilization of waste rock dumps.

• About 96 nos. of wells are being monitored for water quality and water levels covering all 4-seasons in a year at iron ore projects. Studies are revealed that there has been an increasing trend in the ground water level due to hydraulic loading by the existing check dams and check bunds. Limited usage of ground water and continuous recharge helped in the process. One Digital Water Level Recorder (video telemetry) and one piezometer are also installed at Bailadila Iron Ore Mine, Bacheli Complex for regular monitoring of ground water level.

• NMDC has set-up Sewage Treatment Plant (STP) with advanced treatment technology (Sequential Batch Reactor) at Bacheli (2 MLD) and Donimalai (3 MLD) township for treatment of domestic waste water. STP works are in progress at Kirandul (3 MLD) and the treated water will be reused for green belt development.

• About 3 million saplings were planted in and around NMDC projects covering an area of 2300 Ha. NMDC is also actively contributing funds to Government of Chhattisgarh flagship programme "Hariyar Chhattisgarh" for undertaking block plantation in the state of C.G by CGRVVN Limited. Chhattisgarh Rajya Van Vikas Nigam Limited (CGRVVN Ltd). 2 Matri Vans established (1 at Bacheli and another at Kirandul) through Chhattisgarh Forest Department. 20000 saplings of trees planted in above matri vans under the "Ek Ped Maa Ke Naam" program.

14. Health & Safety

• Health & Safety continue to be our priority with employees & contractual workmen at our projects adhering to the SOPs & safety norms. NMDC appreciate that safety is a journey & is committed to continually improve its performance and set high standards.

• NMDC has its training centers in all its projects. They are equipped with infrastructure as required under Mines Vocational Training Rules. These centers cater to the needs of basic training, refresher training and training for skilled workers and also for those injured on duty.

• In each mining project of NMDC sufficient number of Workmen Inspectors are nominated/appointed for Mining operations, Mechanical and Electrical installations as per statutory requirements for carrying safety inspections.

• Mine Level Tripartite Safety Committee Meetings have been conducted in each of the operating mines. This meeting is conducted once in a year at project level with senior officials, Union Representatives and DGMS Officials in which Safety Performance and its appraisal are made and the recommendations are implemented.

• Corporate Level Tripartite Safety Committee Meetings are being held regularly once in a year at Head Office and the recommendations are implemented.

• Safety Committees have been constituted in every operating mine and pit safety meetings are held every month discussing the safety matters and corrective actions related to work atmosphere.

• In order to ensure that safety systems are up to date & also comply with the latest safety regulations, a crossproject internal safety audit and external safety audit by outside agency has been started in NMDC.

• Safety Management system has been implemented in all our mines. Risk Assessment studies are being conducted regularly.

• NMDC provides extensive safety training programmes to inculcate safety habits & mindset at work to its employees. Behavioral based safety trainings are also given to the employees.

• The Severity Rate for the year 2025-26 is 474.94 and Injury frequency rate is 4.18.

(Severity Rate = Man-days lost per 100000 Man-days worked).

OHS Activities:

Occupational Health Services have been provided with adequate manpower and infrastructure and are functioning in full-fledged manner at all the projects, headed by Qualified Doctors trained in OHS at Central Labour Institute, Mumbai.

Periodical Medical Examination under statute is carried out regularly in all the projects.

NMDC strives to ensure that workers are not exposed to occupational hazards that negatively affect their health. NMDC also has well equipped hospitals with capable medical teams available 24/7 to support the health & wellbeing of the workers & the surrounding community.

15. Corporate social responsibility

As a socially responsible and environmentally conscious Corporate Citizen, NMDC remains steadfast in its commitment to fostering inclusive growth, sustainable development and community empowerment in the areas surrounding its operations. Guided by the philosophy of creating shared value and ensuring that the benefits of economic progress reach the most vulnerable sections of society, the Company continues to implement transformative CSR interventions across education, healthcare, nutrition, skill development, rural infrastructure, livelihood enhancement and community welfare.

Detailed disclosure on CSR activities of the Company forms part of the Annual Report.