Gujarat Mineral Development Corporation (GMDC) declined 4.23% to Rs 516.20 as investors booked profits after the stock surged 18.45% in the last two sessions.
Despite the dip, the stock remains up 27.87% from its recent closing low of Rs 403.70 on 29 August 2025 and has gained 42.53% over the past year. Trading volumes were elevated, reflecting active participation from both institutional and retail investors.The recent rally in GMDC shares has been supported by expectations of the governments push towards rare earth mining to strengthen domestic supply chains for critical minerals used in electric vehicles, renewable energy and high-tech electronics. GMDC is developing rare earth deposits in Gujarats Chhota Udaipur district and plans to build an integrated supply chain from mining to processing.
The PSU, Indias second-largest lignite producer and a zero-debt company, has also diversified into thermal, wind and solar power.
Brokerages, however, remain cautious on valuations, citing slower-than-expected ramp-up at lignite mines and limited visibility on rare earth projects.
GMDC, Indias second-largest lignite producer and the leading merchant seller of lignite, is a state-owned enterprise with the Gujarat government holding a 74% stake. The company mines lignite from deposit-rich regions across the state and supplies it to high-growth industries such as textiles, chemicals, ceramics, bricks, and captive power.
The companys standalone net profit declined 11.07% to Rs 164.13 crore on a 10.45% drop in revenue from operations to Rs 732.60 crore in Q1 FY26 over Q1 FY25.
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