Shares of Gujarat Mineral Development Corporation Ltd (GMDC) declined 2.58% to ₹423.20 in early trade on Monday after the state-owned miner reported weaker-than-expected Q1 FY26 earnings. The stock opened lower, extending losses from the previous session where it had closed at ₹434.40.
GMDC posted a 10.8% year-on-year drop in net profit at ₹164 crore for the June quarter, compared to ₹184 crore in the same period last year. Revenue from operations also declined by 10.5% YoY to ₹732 crore from ₹818 crore in Q1 FY25.
At the operating level, EBITDA dropped 19.8% YoY to ₹170 crore, while EBITDA margin contracted to 23.2% from 25.9% a year earlier. The decline in margins and profitability reflects weaker commodity pricing and muted volume growth.
Despite the near-term weakness, GMDC remains a key player in India’s lignite and mineral development space, but investors may stay cautious given the softness in financial metrics.
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