Shares of GMDC ended 0.61 per cent higher at Rs₹563.15 apiece on the BSE on Friday
State-owned Gujarat Mineral Development Corporation (GMDC), India’s second-largest lignite producer, on Friday reported a flat consolidated net profit for the first quarter ended June 30, as higher revenue from its mining and power businesses helped offset pressure on earnings.The company’s consolidated profit after tax stood at ₹163 crore for the April-June quarter of FY27, compared with ₹164 crore in the year-ago period. Consolidated revenue from operations rose 24 per cent y-o-y to ₹907 crore. Revenue from the mining business, which remains the company’s largest segment, increased 23 per cent to ₹841 crore, while revenue from the power business surged 136 per cent to ₹111 crore.Alongside its quarterly results, the board approved proposals to sign separate memoranda of understanding (MoUs) with state-owned IREL (India) Ltd to explore opportunities in rare earth elements (REE) and with Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) to jointly evaluate opportunities in the coal-to-chemicals value chain using gasification technologies, including underground coal gasification (UCG). GMDC said that further details on both collaborations would be announced after the agreements are executed.Equity sharesDuring the quarter, the company’s investment in another state-PSU Gujarat State Petroleum Corporation Ltd (GSPC) stood extinguished following the implementation of a composite scheme of amalgamation and arrangement. In return, GMDC received equity shares of listed PSU Gujarat Energy Ltd (GEL) under the approved share-swap ratio and is also entitled to receive shares of GSPL Transmission Ltd after the demerger of GEL’s gas transmission business.GMDC primarily mines lignite in Gujarat for industries such as textiles, chemicals, ceramics, bricks and captive power generation. The company is also engaged in mining minerals, including bauxite, fluorspar, manganese, silica sand and limestone, and has diversified into thermal and renewable power generation. It has also acquired three coal mines in Odisha, although commercial production from these assets is yet to commence.Shares of GMDC ended 0.61 per cent higher at ₹563.15 apiece on the BSE on Friday. Published on July 31, 2026
