GMDC Share Price Jumps 11%, Nears Record High on Rare Minerals and Expansion Plans

Gujarat Mineral Development Corporation (GMDC) share price soared 11% to ₹503.25 on the BSE during Friday’s trade, supported by heavy volumes of 8.3 million shares across NSE and BSE. The stock is now close to its all-time high of ₹505, touched in February 2024.

In the last week, GMDC has gained 25%, far outperforming the 0.5% rise in the Sensex. Since hitting its 52-week low of ₹226.20 on March 3, 2025, the stock has zoomed 122%.

Government Backing And Business Focus

Promoted by the Government of Gujarat (74% stake), GMDC is mainly engaged in mining and power generation. It is India’s largest merchant seller of lignite and the second-largest producer. Lignite contributes about 85–90% of GMDC’s revenue, supplying over 25% of Gujarat’s lignite demand.

Recently, the Union Cabinet approved ₹1,500 crore under the National Critical Mineral Mission (NCMM) to strengthen recycling and critical mineral production, boosting sentiment for mining stocks like GMDC.

GMDC Q1 FY26 Performance and Expansion Plans

Despite lower revenue in Q1FY26, GMDC delivered strong margins and profitability, showing resilience. The company currently runs 4 lignite mines with 79–80 MT reserves and has been allotted 6 new blocks with ~360 MT reserves, set to begin production by Q4FY26 or Q1FY27.

Also Read: Kalyan Jewellers Net Profit Rises 48.6% to ₹264 Crore!

Diversification Into Rare And Strategic Minerals

GMDC is also diversifying beyond lignite. It is exploring rare earth minerals (REMs) in Gujarat’s Chhota Udepur, crucial for energy tech, defence, and electronics. The company has bauxite, silica sand, fluorspar, and limestone resources in Gujarat and plans underground copper mining near Ambaji.

The goal is to increase revenue from non-lignite minerals to 50% in the medium term, compared to less than 15% now.

Conclusion

GMDC’s strong rally reflects investor confidence in its expansion strategy, new mine developments, and push into rare minerals. With government backing and a strong market position, GMDC is on track to deliver long-term growth.

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