Synopsis: The mining stock surged up to 5% after securing indigenous rare earth processing technology for the Ambadungar project. Shares traded near ₹552 with a market value of about ₹17,555 crore. The development supports pilot-scale MREC production, strategic minerals focus, and long-term value creation aligned with national priorities.
The shares of the minerals and lignite mining company gained up to 5 percent in today’s trading session after the company received indigenous processing technology from the Bhabha Atomic Research Centre.
With a market capitalization of Rs 17,555.19 crore, the shares of Gujarat Mineral Development Corporation Ltd were trading at Rs 552.05 per share, increasing around 2.42 percent as compared to the previous closing price of Rs 538.75 apiece.
Ambadungar project
The shares of Gujarat Mineral Development Corporation Ltd have seen positive movement after it strengthened its rare earths strategy after receiving indigenous processing technology from Bhabha Atomic Research Centre for the Ambadungar project. The technology enables pilot-scale production of mixed rare earth concentrate, helping GMDC address ore-specific challenges, optimise recovery, and accelerate project development with strong technical backing.
Commenting on this significant milestone, Shri Roopwant Singh, IAS, Managing Director, GMDC, said: “The transfer of the rare earth processing technology from BARC for the Ambadungar REE Project represents an important step in GMDC’s rare earths journey. It strengthens our ability to develop the project in a systematic and responsible manner, while building an end-to-end, future-ready rare earths value chain. Our focus remains on long-term value creation in alignment with India’s critical mineral strategy and the Atmanirbhar Bharat vision.”
Financials
The company delivered a mixed financial performance, with revenue declining 11 percent from Rs 593 crore in Q2FY25 to Rs 528 crore in Q2FY26. However, profitability improved sharply, as net profit surged 264 percent year on year to Rs 466 crore, indicating stronger margins, cost efficiencies, or one-off gains during the quarter.
Operating performance weakened in the latest quarter, with operating profit margin declining to 13 percent in Q2FY26 from 23 percent in the previous quarter and 24 percent a year ago. The sharp contraction reflects higher cost pressures and softer operating leverage, resulting in a significant drop in operating profit despite relatively stable expense management.
Gujarat Mineral Development Corporation is a state-owned mining company engaged in the exploration and production of lignite, bauxite, limestone, and other minerals. The company plays a key role in supporting Gujarat’s industrial ecosystem, while steadily expanding into value-added minerals and emerging opportunities like rare earth elements.
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