GMDC shares hit 52-week-high amid heavy trading volumes; check key details

Shares of Gujarat Mineral Development Corporation (GMDC) rallied 12.98% to touch the 52-week high of ₹514.30 on the National Stock Exchange (NSE) in Friday’s intra-day trade, driven by heavy volumes. The stock opened the session at ₹455.20. At 2:49 PM, the scrip is up 11.68% to ₹508.80 per share. Its market capitalisation stands at ₹16,157.58 crore.

Over the last five days, shares of GMDC have zoomed 23.95% and for a month’s period, it rose 23.80%. Data shows that, for the last 6 months, shares of GMDC have risen significantly by 104.67%. On a YTD basis, GMDC shares have advanced 57.26%.

GMDC is promoted by the Government of Gujarat, which held a 74% stake as of June 30, 2025. The company is primarily engaged in mining and power generation and is active in the exploration of opencast lignite, bauxite, fluorspar, manganese, silica sand, limestone and bentonite.

On the policy side, the Union Cabinet recently approved a ₹1,500 crore incentive scheme to boost recycling capacity for extracting and producing critical minerals from secondary sources. The initiative, under the National Critical Mineral Mission (NCMM), aims to strengthen domestic capacity and supply-chain resilience.

GMDC is India’s largest merchant seller of lignite and the country’s second-largest lignite producer. Lignite mining contributes roughly 85–90% of the company’s total operating income, and the company meets more than a quarter of Gujarat’s lignite demand.

As of March 31, 2025, GMDC operates four lignite mines with estimated reserves of about 79–80 million tonnes and an average mine life of around nine to ten years. The company has been allotted six new lignite blocks with combined reserves of roughly 360 million tonnes, and it expects to begin commercial production from these blocks in Q4 FY26 or Q1 FY27.

GMDC is expanding its Bhavnagar mine to lift output and is developing capabilities in other minerals and metals, including rare earth minerals (REMs). The company says REMs can be used for manufacturing permanent magnets for high-tech consumer products, energy and green technology, defence and aerospace, and other industrial applications. GMDC has REM deposits at Chhota Udepur in Gujarat and is developing these assets for mining, processing and marketing.

The company also holds resources of bauxite, silica sand, fluorspar and limestone materials used across cement, agriculture, high-performance plastics and glassmaking. Its bauxite mines are located in Kutch and Devbhumi Dwarka in Gujarat.

GMDC reported a decline in its Q1 (June quarter) financial results for FY2025-26, with a year-on-year decrease in net profit by approximately 11% to ₹164 crore and a 10.5% drop in revenue to ₹732 crore, as announced on July 25, 2025. The company's operating profit (EBITDA) also fell, down by about 20% to ₹170 crore, resulting in a lower EBITDA margin of 23.2% compared to the previous year's 25.9%.