Gujarat Mineral Development Corporation (GMDC) has presented a ₹223.54 crore dividend cheque to the Gujarat government for FY26, representing the state's share of the company's final dividend. The Gujarat government holds a 74% stake in GMDC and will receive this amount from the payout. According to the latest press release filed on October 21, 2026, Chief Secretary M. K. Das handed over the cheque to Chief Minister Bhupendra Patel in Gandhinagar. The company's board recommended a dividend of ₹9.50 per equity share with a face value of ₹2 on May 14, 2026, which shareholders approved at the 63rd annual general meeting on September 30. The total shareholder dividend payout amounts to ₹302.10 crore, with the government's proportionate share representing approximately 30% of GMDC's standalone profit after tax for FY26, in line with the Gujarat government's progressive dividend policy for state public sector enterprises.
GMDC reported standalone profit after tax of ₹990.81 crore for FY26, representing a significant increase from ₹687.92 crore in FY25. As reported in the latest filing, the company's FY26 profit included an exceptional gain of ₹522.65 crore from input tax credit following the rationalisation of goods and services tax (GST) rates on lignite. The filing notes that this exceptional gain is non-recurring in nature, which investors will want to factor into their assessment of the underlying earnings base supporting future dividends. The total dividend payout represents around 30% of GMDC's standalone profit after tax for FY26, demonstrating the company's alignment with the Gujarat government's progressive dividend policy for state public sector enterprises.
According to the latest filing, GMDC's dividends to the Gujarat government over the five financial years from FY22 to FY26 have exceeded ₹1,050 crore. Managing Director Ajay Bhadu emphasized that the financial discipline reflected in this dividend will be carried into future projects, aiming to strengthen the lignite business while advancing critical mineral initiatives for India's resource security. The cumulative dividends paid to the government over the last five years demonstrate a sustained commitment to returning capital, regardless of annual exceptional items, with the latest payout representing the continuation of this track record.
As reported in the latest filing, GMDC operates five lignite mines across Kutch, South Gujarat, and Bhavnagar, a 250 MW lignite-based thermal power station at Akrimota, 205.9 MW of wind and solar power capacity, and three coal blocks in Odisha - Baitarani West, Burapahar and Kudanali-Lubri. The company is actively diversifying its portfolio to reduce reliance on traditional mining revenues, with key growth areas including copper and rare earth elements projects, which align with India's 2023 Critical Minerals List that identifies these elements as critical minerals. GMDC shares fell 3.53% to ₹442.55 on Wednesday, losing ₹16.20 during the session, reflecting market concerns about the company's heavy reliance on one-off regulatory benefits for profitability. Established in 1963, GMDC plays a significant role in Gujarat's industrial and economic development through the mining and sale of minerals, including lignite, bauxite, limestone, fluorspar and silica sand, while contributing to the state's long-term energy security and resource security.
