Gujarat Mineral Development Corporation (GMDC), one of India’s largest lignite miners, reported a 14% year-on-year decline in consolidated net profit for the fourth quarter of FY26 at ₹194 crore, reflecting weaker operational performance in its core mining business despite strong growth in power sales.
Consolidated revenue from operations during the January-March quarter rose 3.5% year-on-year to ₹814 crore. Revenue from mining — GMDC’s main business — grew only 1.8%, while revenue from power sales surged 211% during the quarter. For the full year FY26, consolidated revenue from operations declined 7% to ₹2,653 crore as mining revenue fell 7.5%. Revenue from power sales, however, increased 35% during the year. GMDC operates across lignite mining, bauxite, manganese and power generation businesses and remains one of Gujarat’s key state-owned natural resource companies.
Despite the decline in topline performance, GMDC reported a sharp 41% rise in annual consolidated profit after tax at ₹957 crore, largely aided by exceptional GST-linked input tax credit (ITC) gains amounting to more than ₹522 crore. The company recognised an ITC asset worth ₹492.63 crore following changes in the GST structure on lignite supplies effective September 22, 2025. The GST rate on lignite was increased to 18% from 5%, alongside the removal of compensation cess, ending the inverted duty structure that had earlier limited the company’s ability to utilise input tax credits.
