GMDC's operating margin rebounds, but profit remains flat YoY
Revenue grew 23.76% YoY, but faster expense growth narrowed margin by 2.03 percentage points and offset the operating improvement.
Filed 31 Jul 2026, 13:25 IST · Gujarat Mineral Development Corporation Ltd (GMDCLTD)
Key takeaways
- GMDC's consolidated operating margin recovered 8.27 percentage points QoQ to 21.07%, as revenue grew 11.37% while expenses rose 0.81%.
- Despite 23.76% YoY revenue growth, consolidated net profit fell 0.21% because expenses grew faster and interest costs rose 1196.08%.
- Other income contributed 33.63% of pre-tax profit, making the Rs 163.43 cr profit less dependent on operations alone.
Price around the results
QoQ operating recovery did not lift profit
GMDC's consolidated revenue rose 11.37% QoQ, while expenses increased only 0.81%, lifting operating profit by 83.34% and margin by 8.27 percentage points. Profit before tax nevertheless declined 2.97% because other income fell 58.52% and the tax rate rose 10.93 percentage points. Other income still accounted for 33.63% of pre-tax profit.
YoY growth came with cost and interest pressure
Revenue increased 23.76% YoY, but expenses grew faster at 27.02%, narrowing operating margin by 2.03 percentage points. Interest expense rose 1196.08% and depreciation increased 51.50%, while the tax rate was 1.22 percentage points higher. These pressures left net profit down 0.21% YoY despite the higher operating profit.
Margin recovered from Q4 but remains below last year
The 21.07% operating margin was well above Q4FY26's 12.80%, but below Q1FY26's 23.10% and Q4FY25's 24.62%. The quarterly trend shows a recovery from the Q4 trough after margins fell from 24.62% in Q4FY25 to 13.16% in Q2FY26, rather than a continued sequential decline. GMDC's margin was 1.68 percentage points above the 19.39% median for the 41 Commodities peers that had reported.
Initial stock move was modest versus its results history
The stock rose 0.42% on the results date, with a 0.85% opening gap. In the last eight results reactions, it fell six times and rose twice, while the median absolute move was 3.08%, so this initial move was smaller than its typical reaction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹907 cr | ₹814 cr | +11.37% | +23.76% |
| Other income | ₹77 cr | ₹185 cr | -58.52% | -1.33% |
| Expenses | ₹716 cr | ₹710 cr | +0.81% | +27.02% |
| Operating profit | ₹191 cr | ₹104 cr | +83.34% | +12.88% |
| Operating margin (%) | 21.07% | 12.80% | — | — |
| Interest | ₹7 cr | ₹5 cr | +23.09% | +1196.08% |
| Depreciation | ₹33 cr | ₹49 cr | -31.64% | +51.50% |
| Profit before tax | ₹228 cr | ₹235 cr | -2.97% | +1.49% |
| Tax | ₹64 cr | ₹41 cr | +58.38% | +6.08% |
| Net profit | ₹163 cr | ₹194 cr | -15.80% | -0.21% |
| EPS (₹) | ₹5.14 | ₹6.10 | -15.74% | -0.19% |
Operating margin of 21.07% compares with a Commodities sector median of 19.39% across 41 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.42% | +0.15% |
Volume on the results session was 3.47× its 20-day average.
What to watch
- Whether operating margin holds above 21.07% after the QoQ recovery.
- Whether expenses grow slower than revenue after rising 27.02% YoY against revenue growth of 23.76%.
- Whether other income remains a material contributor after accounting for 33.63% of pre-tax profit.