Gujarat Mineral Development Corporation Ltd Q3 FY26 – ₹579 Cr Sales, ₹133 Cr PAT, EPS ₹4.18, P/E 28: Is Gujarat’s Mining Giant Turning Into a Coal King?
1. At a Glance – The Gujarat Government’s Mining ATM?
₹17,905 crore market cap. ₹563 share price. 112% return in one year. P/E 28. ROCE 14.1%. ROE 10.9%. Dividend yield 1.75%. Debt-to-equity 0.04.
Ladies and gentlemen, meet Gujarat Mineral Development Corporation Ltd — or as I like to call it, “Government Mining Machine with a Power Plant Side Quest.”
In Q3 FY26 (December 2025 quarter), the company reported:
Revenue: ₹579 crore
PAT: ₹133 crore
EPS: ₹4.18
OPM: 17%
But wait. Just last quarter (Sep 2025), PAT was ₹466 crore and EPS was ₹14.65 — thanks to a ₹474.43 crore GST input credit recognized as an exceptional item.
So the real question is: is this a mining powerhouse or a quarterly lottery ticket?
Let’s dig.
2. Introduction – The Lignite Sultan of Gujarat
GMDC is not your regular private mining company. This is a state-owned enterprise with 74% promoter holding by the Governor of Gujarat.
It mines lignite, bauxite, manganese, fluorspar, limestone, silica sand, bentonite — basically, if it’s under Gujarat’s soil, GMDC has probably poked it with a shovel.
90% of its revenue comes from mining. Around 85–90% of that mining revenue comes from lignite.
Translation: GMDC is basically a lignite company pretending to be diversified.
It caters to about 25% of Gujarat’s lignite demand and wants to take it to 30–35% by FY25. Production capacity is planned to increase from 8 MTPA to 10 MTPA.
And that’s just Gujarat.
The company has also:
Two coal blocks in Odisha
200.9 MW wind capacity
5 MW solar
A 250 MW thermal plant (currently underperforming)
Now ask yourself — is this a mining company with power exposure, or a power company that mines fuel?
Keep reading.
3. Business Model – WTF Do They Even Do?
1. Mining (90% of revenue)
The bread, butter, and Gujarati khichdi of GMDC.
Main products:
Lignite (primary cash cow)
Bauxite
Manganese
Limestone
Silica sand
Bentonite
They operate across Kutch, Surat, Rajkot, Jamnagar, Porbandar, Amreli, Bhavnagar and more.
Lignite alone contributes 85–90% of operational income. That’s like saying you’re diversified because you sell both masala chai and plain chai.
They plan to add 6 new lignite mines with total reserves of 360 MT by FY29–FY30.
2. Power (~10%)
250 MW thermal power plant
200.9 MW wind
5 MW solar
The thermal plant has low PLF (38% in FY23). They plan ₹300 crore capex to improve PLF beyond 75%.
They also onboarded A.T. Kearney to help fix this.
When you hire consultants, either you’re scaling up… or you’re confused.
Which one is this?
4. Financials Overview – The Numbers Don’t Lie (But They Do Fluctuate)
