NMDC Ltd., India’s largest iron ore producer, reported a significant increase in its iron ore sales and production figures for May 2025, triggering a brief spike in its stock price. This rise underscores the resilience of the mining sector and highlights NMDC’s robust performance in both Karnataka and Chhattisgarh regions.

Sales See Strong YoY Growth

NMDC’s iron ore sales surged to 4.34 million tonnes (MT) in May 2025. This marked a sharp rise of 54% compared to the 2.82 MT sold in May 2024. This performance reflects strengthened demand, enhanced mining operations, and improved logistics in its operating geographies.

The company has two key mining locations—Chhattisgarh and Karnataka—which together contribute significantly to its monthly output and sales figures.

Chhattisgarh Leads the Way

Sales in Chhattisgarh saw a remarkable increase, rising to 3 MT in May 2025 from 1.34 MT in May 2024. The iron ore mines in Bailadila region, located in the Dantewada district of Chhattisgarh, continue to be a reliable source of high-grade ore and contribute majorly to NMDC’s revenue stream.

This growth not only demonstrates NMDC’s efficient mining operations in the region but also reflects the company’s logistical improvements, including better rail and road connectivity to major industrial hubs.

Karnataka Sales Show Steady Progress

Sales in Karnataka also improved, increasing to 1.34 MT from 0.91 MT in the same month last year. NMDC’s operations in Donimalai and surrounding belts have gradually picked up pace post regulatory clearances and environmental approvals. The boost in Karnataka sales suggests that local demand from steel plants and sponge iron units is rebounding, aided by infrastructure push in southern India.

Total Sales for FY25 So Far Remain Robust

NMDC’s total sales during the first two months (April–May) of the current financial year FY25 stood at 7.94 MT, compared to 6.35 MT in the same period last year. This represents a 25% YoY growth and indicates that the company is on track to surpass its FY24 sales figures, assuming the current trend continues.

The consistent month-over-month growth is seen as a positive indicator by market analysts and investors, particularly amidst fluctuating global commodity prices.

Iron Ore Production Also on the Rise

In addition to the sales boost, NMDC’s iron ore production in May 2025 reached 4.43 MT, a solid rise from the 2.34 MT recorded in May 2024. This marks an 89% YoY increase in production, showcasing NMDC’s ability to scale up extraction capacity efficiently.

• Chhattisgarh production rose to 3.06 MT, up from 1.27 MT

• Karnataka production reached 1.37 MT, compared to 1.07 MT last year

Overall, production for FY25 up to May stands at 8.43 MT, versus 5.82 MT in the corresponding period of the previous fiscal year. This increase aligns with the company’s expansion plans and push toward achieving higher volume targets to meet rising domestic and export demand.

Share Price Reaction and Market Sentiment

Following the production and sales report, NMDC shares climbed 0.85% intraday, reaching ₹71.78 apiece. Although the stock later pared gains, it remained in the green, trading 0.6% higher at ₹71.6 by 1.45 PM.

Investors initially reacted positively to the data, which is viewed as an early sign of a strong first quarter performance for FY25. However, profit-booking and broader market cues led to some cooling off later in the day.

Operational Efficiency and Strategy

NMDC’s continued focus on streamlining operations, increasing mechanisation, and ensuring compliance with sustainability norms has played a crucial role in the current growth phase. The company is also investing in new beneficiation plants, modernisation of equipment, and digital transformation to further enhance productivity.

The sales and production uptick also reflects NMDC’s strategic foresight in aligning supply with increasing steel sector demands, especially as government infrastructure projects and housing schemes fuel construction activity.

Outlook for FY25

Market analysts believe that NMDC is well-positioned for growth throughout FY25, with projections estimating double-digit volume growth for the full year. While global iron ore prices remain volatile, strong domestic demand and efficient mining practices may help shield NMDC from international headwinds.

Key tailwinds for the company include:

• Stable government policies supporting the mining sector

• Rising steel demand in India

• Increased capacity utilisation at domestic steel plants

• Ongoing infrastructure and urban development projects

Conclusion

With significant growth in both production and sales, NMDC is off to a strong start in FY25. The company’s performance in May 2025 is a testament to its operational strength and strategic direction. As it continues to ramp up output and expand market share, investors and stakeholders remain optimistic about NMDC’s outlook in the mining and metals sector.

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