FAB Reiterates Buy Rating on NMDC Group After Q3 Results

06:14 AM EST, 11/03/2026 (MT Newswires) -- FAB Securities affirmed its investment view on NMDC Group (ADX:NMDC) following its third-quarter results. "We maintain our BUY rating on NMDC Group with a target price of AED 34.00. NMDC Group reported subdued performance in 3Q26, with marginal revenue growth, margin contraction and lower profitability on both a YOY and QOQ basis. Performance was impacted by a challenging operating environment amid regional unrest, alongside recognized cost overruns arising from higher insurance, logistics and fuel costs," analysts said in a first look note published Tuesday. The Abu Dhabi-listed company's attributable net profit for the third quarter came in at 719 million Emirati dirhams, down 22% year over year and below FAB's expected 868 million dirhams. Meanwhile, contract revenue increased 1.4% to 7.28 billion dirhams, against the research firm's forecast of 7.60 billion dirhams. "The existing backlog is expected to unwind primarily over 2027-2028, with AED 23.2 Bn in 2027 and AED 15.4 Bn in 2028 scheduled for execution. The Group remains confident in replenishing the backlog to support revenue generation beyond 2028, underpinned by a sizeable project pipeline of AED 104.4 Bn, comprising submitted and upcoming tenders, expressions of interest (EOIs) and future prospects," FAB wrote.