State-owned miner NMDC recorded a nearly 23% year-on-year increase in iron ore production during the first half of 2026-27, with cumulative output reaching 27.27 million tonnes (MT) by the end of September even as sales remained virtually unchanged from the corresponding period last year.
According to provisional production and sales data disclosed by the company, NMDC produced 27.27 MT during April-September 2026, compared with 22.20 MT in the same six-month period of the previous financial year. The increase of 5.07 MT translated into year-on-year production growth of about 22.8%.
Sales remain flat
The sharp increase in production was not accompanied by a similar rise in sales. NMDC's cumulative iron ore sales stood at 22.23 MT during April-September, the same level as in the corresponding period of 2025.
The figures created a sizeable gap between cumulative production and sales during the first half. Output exceeded sales by 5.04 MT during April-September, compared with a much narrower difference in the year-ago period.
The numbers, however, represent production and sales volumes rather than inventory figures, and the difference cannot by itself be treated as the company's actual stock position because of timing and other operational factors.
September output grows
For September alone, NMDC produced 4.04 MT of iron ore, up about 7.7% from 3.75 MT in September 2025.
Monthly sales moved in the opposite direction. The company sold 3.51 MT during September 2026, down about 9.5% from 3.88 MT in the corresponding month last year.
The September figures indicate that while NMDC maintained production growth towards the end of the first half, dispatches had yet to catch up with the increase in mining volumes.
Chhattisgarh drives growth
NMDC's Chhattisgarh operations accounted for most of the increase in cumulative production. Output from the state rose to 18.92 MT during April-September 2026 from 14.78 MT in the corresponding period last year, an increase of 4.14 MT.
Sales from the Chhattisgarh operations also improved, rising to 16.42 MT from 15.13 MT a year earlier.
In September alone, Chhattisgarh produced 2.50 MT, broadly unchanged from 2.49 MT in September 2025. Sales from the state, however, fell to 2.13 MT from 2.58 MT during the same month last year.
The Chhattisgarh operations include NMDC's major Bailadila iron ore mining complexes, which form a substantial part of the company's overall production base.
Karnataka output up
NMDC's Karnataka operations also reported higher production. Cumulative output increased to 8.35 MT during the first half from 7.42 MT a year earlier.
Unlike Chhattisgarh, however, Karnataka recorded a decline in cumulative sales. Dispatches fell to 5.81 MT during April-September from 7.10 MT in the corresponding period of 2025.
September showed stronger production from Karnataka, with output rising to 1.54 MT from 1.26 MT a year earlier. Monthly sales increased to 1.38 MT from 1.30 MT.
The regional numbers show that Chhattisgarh accounted for the bulk of NMDC's first-half production increase, while the decline in Karnataka sales offset the improvement recorded in Chhattisgarh.
Output target in focus
NMDC has set a target of around 60 MT of iron ore production and a similar level of sales for 2026-27. The 27.27 MT produced in the first six months represents about 45% of that annual production target.
The company had produced 23.23 MT up to August, compared with 18.45 MT during the same period a year earlier. The addition of September's 4.04 MT took first-half output past 27 MT.
NMDC is India's largest iron ore producer and operates major mines in Chhattisgarh and Karnataka. Iron ore is the principal raw material used in steelmaking, making the company's production and sales volumes an important indicator for the domestic steel raw-material market.
Diversification plans advance
Alongside expanding iron ore production, NMDC is also seeking to broaden its mineral portfolio. The company plans to begin commercial production of thermal coal during the October-December quarter and is targeting sales of around 1 MT of the fuel during the current financial year.
It is also looking to begin development of a coking coal mine during 2026-27, with production targeted to start as early as the following financial year. Coking coal is a critical input for conventional blast-furnace steelmaking and India remains heavily dependent on imports for its requirements.
For the immediate term, however, the first-half numbers underline contrasting trends in NMDC's core iron ore business: production has expanded strongly, led by Chhattisgarh, while overall sales volumes have remained at last year's level.