Gujarat Mineral Development Corporation Limited presented a dividend cheque of ₹223.55 crore to the Government of Gujarat on October 21, 2026. This payment represents the state government's share of the company's final dividend for FY26, underscoring the consistent cash returns from this key public sector enterprise.

The cheque was handed over to Chief Minister Bhupendra Patel by Managing Director Ajay Bhadu. The final dividend of ₹9.50 per share (475% on face value) was approved by shareholders at the 63rd Annual General Meeting held on September 30, 2026. With the government holding a 74% equity stake, it receives the majority of the total shareholder payout of ₹302.10 crore.

Financial performance and dividend policy

The dividend declaration aligns with GMDC's robust financial performance in FY26. The company reported a standalone profit after tax (PAT) of ₹990.81 crore, a significant rise from ₹687.92 crore in FY25. The total dividend payout corresponds to approximately 30% of the standalone PAT, adhering to the progressive dividend policy for state public sector enterprises.

It is important to note that the FY26 profit includes an exceptional gain of ₹522.65 crore arising from input tax credit following GST rate rationalisation on lignite. Excluding this non-operational item, the core operational profitability would be significantly lower, though still substantial given the scale of the gain relative to total earnings.

What the Numbers Show

The dividend payout highlights a strong dependency on one-off regulatory benefits for this specific fiscal year's headline profit. While the ₹990.81 crore PAT suggests robust health, the ₹522.65 crore exceptional gain constitutes over half of the reported profit. Consequently, the dividend coverage ratio based on operating income alone is tighter than the headline figures suggest. However, the cumulative dividends paid to the government over the last five years (FY22-FY26) exceeding ₹1,050 crore demonstrate a sustained commitment to returning capital, regardless of annual exceptional items.

Strategic outlook

Lignite remains the core business for GMDC, supported by five mines across Kutch, South Gujarat, and Bhavnagar. The company is actively diversifying its portfolio to reduce reliance on traditional mining revenues. Key growth areas include:

• Three coal blocks in Odisha
• Copper and rare earth elements projects
• 205.9 MW of wind and solar capacity
• A 250 MW lignite-based thermal power station at Akrimota

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.

Gujarat Mineral Development Corporation has been assigned an Environmental, Social and Governance (ESG) rating of 69, categorized as “Leader”, by Niche Ninety Nine Capability and Certifications (OPC) Private Limited.

The rating was disclosed in a regulatory filing on September 18, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Rating Methodology

The company clarified that it did not engage Niche Ninety Nine for the evaluation or issuance of the ESG rating. The assessment was conducted solely based on publicly available information.

Gujarat Mineral Development Corporation neither participated in nor provided specific data for the purpose of this assessment. The company received intimation of the rating via email from BSE Limited on September 17, 2026, informing that Niche Ninety Nine had submitted the ESG rating disclosure.

Disclosure Details

Detailed ESG rating disclosures are available on the website of Niche Ninety Nine Capability and Certifications (OPC) Private Limited.