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.
GMDC said the credits had previously been expensed out due to remote possibilities of utilisation under the earlier tax regime. The revised structure allowed the company to recognise the amount as an asset, resulting in a corresponding exceptional gain in the profit and loss account. In addition, the company restored ₹30.02 crore worth of ITC related to earlier years after withdrawal of a tax appeal approved by the Joint Commissioner of State Tax. The amount was also recognised as an exceptional item.
The exceptional tax-related gains significantly boosted annual profitability, masking weakness in the miner’s underlying operating performance during the year.
During the board meeting held on Thursday evening, the state-run miner recommended a dividend of ₹9.50 per equity share of face value ₹2 each, translating into a payout of 475% for FY26, subject to shareholder approval at the upcoming annual general meeting.
Published on May 15, 2026