GMDC Shares Slide Over 6% as Q1FY26 Revenue Drops 10% YoY

Ahmedabad, July 28, 2025 — Shares of Gujarat Mineral Development Corporation Ltd (NSE: GMDCLTD) fell 5.97% to ₹408.45 on July 28 after the company posted a 10% year-on-year decline in Q1FY26 revenue. Despite steady margins, weak topline performance triggered selling pressure during the session.

Lignite volumes and value declined significantly, dragging overall performance. While margins held at 30%, earnings quality continued to remain under strain. The bauxite segment reported notable gains in both volume and revenue; however, its smaller scale limited any offset to the dip in lignite-led revenue.

Stock Snapshot

GMDC closed at ₹408.45 on July 28, down 5.97%. It touched an intraday high of ₹443 and low of ₹403.25, with a VWAP of ₹422.38. Volume stood at 49.68 lakh shares and turnover at ₹209.82 crore. A low delivery rate of 27.9% pointed to strong selling pressure.

Q1FY26 Financial Highlights

GMDC reported a 10.4% YoY decline in Q1FY26 revenue from operations at ₹733 crore, down from ₹818 crore. Despite the drop, EBITDA margin held steady at 30%, slipping only 100 basis points. Profit before tax fell 10% YoY to ₹225 crore, reflecting softer topline trends.

Segment Performance Snapshot

Lignite sales dropped to 19.8 lakh MT in Q1FY26 from 23 lakh MT a year ago, with revenue falling to ₹649 crore from ₹753 crore. In contrast, the bauxite segment experienced sharp growth, with volumes reaching 1.4 lakh MT and revenue doubling to ₹34 crore.

Management Commentary

Shri Roopwant Singh, IAS, Managing Director, stated, “GMDC has delivered a steady performance in Q1FY26 with strong margins and healthy profitability despite a dip in revenue. We continue to focus on cost efficiency, operational discipline, and timely execution of key projects.”

Outlook

The revenue miss and lignite volume decline have raised near-term concerns around GMDC’s growth stability. While margins remain intact, the market is assessing execution risks and limited diversification impact. Continued pressure on core operations could weigh on sentiment if volume recovery remains muted.

About Gujarat Mineral Development Corporation Ltd.

Gujarat Mineral Development Corporation Ltd. (GMDC) is India’s second-largest lignite producer and a diversified miner of bauxite, silica sand, and other minerals. It also operates thermal and renewable power projects, with forward integration plans in float glass, solar panels, and cement-grade limestone.

REF: https://nsearchives.nseindia.com/corporate/GMDCLTD_25072025200813_spressreleasejune2025.pdf

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