New Delhi, Aug. 19 -- NMDC Ltd's sales volumes are failing to catch up with strong production growth. This meant weak June quarter (Q1FY27) results. The state-owned iron ore miner's production grew 26% year-on-year to 15.2 million tonnes (mt) last quarter, but offtake rose only 1.8% to 11.7 mt.

This divergence could continue in the monsoon-driven seasonally weak Q2. Despite a price cut on 10 July, sales declined by 1.7% year-on-year last month, prompting the company to cut prices again on 8 August. The two reductions amount to over 7%, with prices now trailing the Q2FY26 average.

Production of iron ore, used to manufacture steel, rose 31% in July, reflecting the management's focus to meet the FY27 guidance of 60 mt (53mt in FY26).

"Whi...