GMDCL's operating margin drops to 12.8% as costs outpace revenue
Revenue rose 3.53% YoY, but expenses increased 19.76%; other income cushioned pre-tax profit even as net profit declined 14.20%.
Filed 14 May 2026, 19:05 IST · after market close · Gujarat Mineral Development Corporation Ltd (GMDCLTD)
Key takeaways
- Consolidated operating margin fell 11.82 percentage points YoY to 12.8% as expenses grew 19.76% against revenue growth of 3.53%.
- Net profit fell 14.20% YoY to Rs 194.09 cr despite a lower 17.29% tax rate, with other income contributing 78.66% of pre-tax profit.
- The stock fell 1.64% on results day, less than its 3.35% median absolute post-results move across eight prior results.
Price around the results
Revenue growth did not translate into operating profit
GMDCL's consolidated revenue rose 3.53% YoY to Rs 814.05 cr, while operating profit fell 46.17% to Rs 104.20 cr. Expenses grew 19.76%, far faster than revenue, pushing operating margin down 11.82 percentage points. Sequentially, revenue increased 40.56%, but expenses rose 48.42%, so operating profit grew only 3.28%.
Other income carried most of pre-tax profit
Other income rose 56.11% YoY to Rs 184.58 cr and accounted for 78.66% of pre-tax profit. This softened the effect of weaker operating performance, but net profit still declined 14.20% YoY as depreciation rose 83.10% and interest increased 5866.67% from a low base. The 17.29% tax rate was 3.36 percentage points lower than a year earlier, which also cushioned the decline.
Margin recovery from Q3 reversed, with GMDCL below the sector median
Operating margin improved from 13.16% in Q2FY26 to 17.42% in Q3FY26, but fell to 12.8% in Q4FY26, marking two consecutive quarterly declines from the Q2 level. The margin was 5.97 percentage points below the 18.77% median for the 51 Commodities peers that had reported the quarter. This places GMDCL among the 10 companies from the bottom on this measure.
Initial market reaction was milder than its usual result-day move
The stock fell 1.64% on the results date and was down 1.81% after five sessions. The initial decline was smaller than the 3.35% median absolute move across the company's eight previous results, when six reactions were negative. The decline widened to 8.12% after 15 sessions and 11.99% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹814 cr | ₹579 cr | +40.56% | +3.53% |
| Other income | ₹185 cr | ₹101 cr | +82.07% | +56.11% |
| Expenses | ₹710 cr | ₹478 cr | +48.42% | +19.76% |
| Operating profit | ₹104 cr | ₹101 cr | +3.28% | -46.17% |
| Operating margin (%) | 12.80% | 17.42% | — | — |
| Interest | ₹5 cr | ₹1 cr | +678.26% | +5866.67% |
| Depreciation | ₹49 cr | ₹22 cr | +120.04% | +83.10% |
| Profit before tax | ₹235 cr | ₹179 cr | +30.78% | -17.69% |
| Tax | ₹41 cr | ₹46 cr | -12.51% | -31.09% |
| Net profit | ₹194 cr | ₹133 cr | +45.87% | -14.20% |
| EPS (₹) | ₹6.10 | ₹4.18 | +45.93% | -14.33% |
Operating margin of 12.80% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.64% | -1.45% |
| Next session | -4.63% | — |
| 5 sessions | -1.81% | -1.93% |
| 15 sessions | -8.12% | — |
| 30 sessions | -11.99% | — |
Volume on the results session was 0.42× its 20-day average.
What to watch
- Whether consolidated operating margin stays above 12.8% after its 11.82-percentage-point YoY decline.
- Whether expense growth moderates from the current 19.76% YoY pace against revenue growth of 3.53%.
- Whether other income's 78.66% share of pre-tax profit declines in the next quarter.