Orissa Minerals Development Company Limited (OMDC), incorporated in 1918, is one of India's oldest mining enterprises. It operates as a public sector undertaking in the state of Odisha, under the administrative control of the Department of Steel and Mines, Government of Odisha. OMDC is a subsidiary of state-owned Rashtriya Ispat Nigam Limited, which positions it as a significant player in India's mining sector.
The company is listed on both major Indian stock exchanges: BSE (Scrip Code: 590086) and NSE (Symbol: ORISSAMINE). As of the latest available data (June 3, 2025), OMDC has a market capitalization of ₹2,962.2 Crore, classifying it as a mid-cap stock within the mining and minerals sector.
OMDC is primarily engaged in the exploration, exploitation, processing, and marketing of iron ore, manganese ore, and other minerals. The company operates various iron ore and manganese ore mines in different districts of Odisha through leases. Its business operations are broadly categorized into four main lines: mining, beneficiation, pelletization, and marketing.
The company's primary products are iron ore and manganese ore. Historically, OMDC has been one of India's largest producers of iron ore, used extensively in steel making across the country. It has also been a significant exporter of manganese ore to countries such as Japan, China, South Korea, and Taiwan. In addition to these main products, OMDC has also produced other minerals like bauxite, limestone, and chromite.
Despite its long history, the company's mines have remained inoperative, and it has not generated any operating revenues in the past few years. However, OMDC is actively working towards resuming its mining operations. Significant progress has been made towards the resumption of mining activities in the Bagiaburu, Belkundi, and Bhadrasahi mines.
To facilitate this, the company paid compensation along with interest totaling Rs. 876 Cr, by availing a loan of Rs.310 Cr, and has secured necessary clearances from the Government of Odisha and the Supreme Court. The Stage-II Forest Clearance for the Bagiaburu mine is currently in an advanced stage, indicating tangible progress toward operational resumption.
The company's financial performance reflects its current operational challenges.
- Total Income: Slipped 25.78% year-on-year (YoY) to ₹21.16 crore.
- Pre-tax Loss: Reported a pre-tax loss of ₹8.39 crore, compared to a pre-tax profit of ₹2.32 crore in Q3 FY2023-24.
- Net Loss: Posted a net loss of ₹7.49 crore, a stark decline from the previous year's profit.
- Total Expenses: Increased by 12.86% YoY to ₹29.56 crore.
- Finance Cost: Stood at ₹6.34 crore (down 13.62% YoY).
- Employee Benefits Expense: Rose to ₹5.66 crore (up 47.78% YoY).
- Net Profit: Declined by 58.9% to ₹0.79 crore.
- Net Sales: Increased by 40.7% to ₹23.39 crore, compared to Q2 FY2023-24.
- Revenue: ₹64.6 Crore
- Profit: -₹40.2 Crore (Loss)
- Market Capitalization: ₹2,962.2 Crore (as of June 3, 2025). The market cap has declined by 34.8% in the past year, reflecting market concerns about the company's challenges.
- P/E Ratio: 629.3 (as of June 3, 2025).
- PB Ratio: -246.3 (as of June 3, 2025).
- Financial Health Indicators: The company exhibits a low interest coverage ratio and faces significant contingent liabilities of ₹2,060 Crore, pointing to financial stress.
- Director Appointment: Shri S Sharad Rao was appointed as the Government Nominee Director of OMDC with effect from June 11, 2025.
- Audit Notes: The audited FY2024-25 standalone results highlighted audit notes on stock, unpaid dividends, litigations, and instances of board non-compliance, indicating ongoing governance challenges.
Orissa Minerals Development Company Ltd belongs to the Materials sector, specifically the Mining - Diversified sub-sector. While recent market cap figures might place it near mid-cap territory, Value Research classifies it as a Small Cap company.
Despite its current operational challenges and financial stress, OMDC remains a significant entity in India's mining sector. The company holds substantial mineral reserves, and its government backing provides a foundational strength for potential future growth, particularly once its mining operations successfully resume. The ongoing efforts to restart mines and secure necessary clearances are crucial for its revival and future market relevance.
