GMDC profit drops 63% as last year's other income fades
Operating margins improved sharply year on year and stayed stable sequentially, but other income still contributed 35.6% of pre-tax profit.
Filed 30 Oct 2026, 12:26 IST · Gujarat Mineral Development Corporation Ltd (GMDCLTD)
Key takeaways
- Consolidated operating margin rose 7.91 percentage points year on year to 21.07% as revenue grew 71.15%, faster than expenses at 55.58%.
- Net profit fell 63.33% year on year because Q2FY26 included Rs 582.25 cr of other income, while Q2FY27 had Rs 83.37 cr.
- Sequential momentum was steady: revenue declined 0.4%, expenses declined 0.4%, and operating margin stayed at 21.07%.
Price around the results
Operating recovery did not translate into year-on-year profit growth
GMDC's consolidated revenue grew 71.15% year on year, while expenses rose 55.58%, lifting operating profit growth to 173.89%. That operating improvement was more than offset at the pre-tax level by the sharp decline in other income from Rs 582.25 cr to Rs 83.37 cr. As a result, net profit fell 63.33% and EPS declined 63.34%.
Margins held steady, but non-operating income remains material
Operating margin was unchanged sequentially because revenue and expenses both declined 0.4%. Year on year, the margin expanded 7.91 percentage points as revenue grew faster than costs. Other income still accounted for 35.6% of pre-tax profit, so reported earnings remain meaningfully supported by non-operating income.
Margin is well above the commodities peer median
The 21.07% operating margin was 5.74 percentage points above the 15.33% median among 54 commodities companies that had reported the same quarter. The quarterly trend shows a rebound from 12.80% in Q4FY26 to 21.07% in Q1FY27, with the margin maintained in Q2FY27. The tax rate also eased 1.16 percentage points sequentially to 27.06%, supporting the 4.5% rise in net profit from Q1FY27.
Fresh results have no market reaction yet
There is no post-results stock reaction yet. Across the last eight results, the stock rose three times and fell five times, with a median absolute move of 3.08%, indicating that post-results moves have more often been negative than positive.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹903 cr | ₹907 cr | -0.40% | +71.15% |
| Other income | ₹83 cr | ₹77 cr | +8.88% | -85.68% |
| Expenses | ₹713 cr | ₹716 cr | -0.40% | +55.58% |
| Operating profit | ₹190 cr | ₹191 cr | -0.43% | +173.89% |
| Operating margin (%) | 21.07% | 21.07% | — | — |
| Interest | ₹7 cr | ₹7 cr | -0.15% | +1057.89% |
| Depreciation | ₹33 cr | ₹33 cr | -1.50% | +50.67% |
| Profit before tax | ₹234 cr | ₹228 cr | +2.85% | -62.79% |
| Tax | ₹63 cr | ₹64 cr | -1.35% | -61.26% |
| Net profit | ₹171 cr | ₹163 cr | +4.50% | -63.33% |
| EPS (₹) | ₹5.37 | ₹5.14 | +4.47% | -63.34% |
Operating margin of 21.07% compares with a Commodities sector median of 15.33% across 54 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds at 21.07% after its rebound from 12.80% in Q4FY26.
- Whether other income remains below the Q2FY26 level of Rs 582.25 cr.
- Whether other income's contribution to pre-tax profit moves from 35.6%.