Economic Overview
FY 2025-26 reinforced the strategic importance of resource security, energy reliability and resilient domestic mineral supply chains. The global economy expanded at a measured pace as inflation moderated and monetary conditions gradually stabilised. At the same time, geopolitical developments, evolving trade relationships and supply-chain diversification continued to elevate the strategic importance of minerals, energy resources and processing capabilities.
For mining and energy companies, competitive differentiation increasingly depended on supply reliability, logistics efficiency, customer proximity and disciplined capital allocation. Demand drivers also became more diversified, supported by infrastructure development, manufacturing expansion, energy transition investments and technology-led applications.
India remained among the fastest-growing major economies during the year. Real GDP is estimated to have grown by 7.7%, while nominal GDP grew by 8.9%. Real GVA expanded by 7.9%, supported by robust growth in the secondary and tertiary sectors, which grew by 8.8% and 9.3%, respectively. Private consumption and gross fixed capital formation both remained above 7.5%, indicating resilient domestic demand and continued investment momentum across key sectors of the economy.
Against this backdrop, GMDC is well positioned to benefit from the strengthening linkage between economic growth, industrial development and mineral demand. As infrastructure, manufacturing and strategic mineral initiatives continue to scale, demand visibility is widening across the Companys resource portfolio, including lignite, bauxite, manganese, silica sand, limestone and emerging mineral opportunities. This gives a platform to enhance resource monetisation through reliable supply, customer-focussed market development, quality assurance, beneficiation and value-added offerings.
The broader operating environment is increasingly influencing project development, market access, energy security, critical mineral capability and capital deployment decisions. Accordingly, the following sections analyse the global and domestic environment and their implications for the Companys business performance, growth initiatives and strategic priorities.
Global Economic Environment
The global economy entered FY 2025-26 with moderate but resilient growth momentum. While economic performance varied across regions, overall growth remained positive. The IMF projects global growth at 3.1% in 2026 and 3.2% in 2027, indicating a stable growth environment than broad-based cyclical expansion. Inflation continued to ease from prior peaks but remained sensitive to energy prices, logistics costs and geopolitical developments.
(Infographics: 3.10% Real GDP Growth, USD 126.3 trillion GDP (Current Prices), USD 15,550 GDP per Capita (Current Prices), International USD 215.0 trillion GDP (PPP Terms), 3.6% Average Inflation (Consumer Prices), 3.4% End-period Inflation (Consumer Prices), 8.21 billion Population, USD 110 billion Current Account Balance)
For the mining sector, demand continued to be supported by infrastructure investments, energy-transition value chains and defence-linked manufacturing. In this environment, customers increasingly prioritised reliability of supply, product quality, logistics capability and service responsiveness over short-term commodity market sentiment.
The year also witnessed continued efforts by countries and industries to diversify sources of energy, minerals and processing capacity. These developments were driven by a combination of geopolitical considerations, export restrictions and concentration risks within global mineral value chains. According to IEA, the top three refining countries accounted for 86% of critical mineral refining capacity in 2024, highlighting ongoing supply concentration risks.
This trend has important long-term implications for GMDC. The Companys initiatives in rare earth elements, copper and critical mineral development align with the increasing strategic emphasis on secure and diversified supply chains. Through projects at Ambadungar and Bharuch, and collaborative initiatives through iCEM, GMDC is positioning itself to participate in emerging mineral value chains that support renewable energy, electric mobility, electronics and defence technologies.
Energy security remained an equally important theme during the year. While investments in renewable energy and storage accelerated, reliable fuels continued to play a key role in industrial competitiveness and grid dependability. Domestic fuel availability remained particularly relevant for industrial clusters exposed to imported fuel volatility and logistics disruptions. The impact of Middle East-related gas supply disruptions on ceramics and allied industries in Morbi during the year reinforced the value of dependable domestic fuel alternatives.
Growth in clean energy and digital technologies further strengthened demand for critical minerals. During 2024, lithium demand grew by nearly 30%, while nickel, cobalt, graphite and rare earth demand rose by 6-8%. The energy sector accounted for 85% of demand growth for battery metals. At the same time, price volatility across several mineral categories showed that strategic demand and short-term pricing cycles can move differently, making project phasing, technology choices and market timing central to value creation.
Within this context, GMDCs strategic direction remains centred on sustaining the profitability of its core lignite business, widening its portfolio, building capabilities in critical minerals and pursuing partnerships that enhance execution capability while mitigating technology7.70% 8.90% 7.90% 8.8%/9.3% Real GDP Nominal Real GVA Growth Secondary / GDP Growth (Current Prices) Sector Growthand project-development risks. The global context therefore supports the logic of a more integrated minerals and energy business, where resource security, customer assurance and mineral processing capability are likely to matter more over the medium-term.
Indian Economic Environment
Indias economic environment remained supportive of mineral and energy demand during FY 2025-26. Growth was driven by strong domestic consumption, public infrastructure spending, private investment and manufacturing activity. Continued investment in transport infrastructure, housing, renewable energy, transmission networks and industrial corridors supported demand across a broad range of minerals and energy resources.
(Infographics: 7.70% Real GDP Growth, 8.90% Nominal GDP Growth, 7.90% Real GVA Growth (Current Prices), 8.8%/9.3% Secondary / Tertiary Sector Growth)
Industrial activity was an important driver of mineral demand. Steel and cement acted as key demand channels during the year, with the cumulative index of steel rising by 9.1%, cement by 8.6%, and the eight core industries by 2.6%. These trends supported demand for manganese ore, limestone, bauxite for cement and industrial uses, and energy resources consumed by manufacturing clusters.
Indias steel sector recorded robust growth, with crude steel production reaching 168.4 MT, representing a 10.7% increase, while finished steel consumption rose to 163.7 MT, marking a 7.6% increase. These trends reinforce favourable long-term demand fundamentals for manganese ore and ferroalloy production. Similarly, infrastructure-led expansion sustained demand for limestone and bauxite, while growing applications in glass, ceramics and solar sectors enhanced demand visibility for silica sand.
Indias energy transition advanced at scale during the year. Total installed power capacity reached 532.74 GW as on 31 March 2026, with non-fossil sources accounting for 53.21% of installed capacity. Renewable energy capacity, excluding large hydro, stood at 230.78 GW, while solar and wind capacity increased to 157.05 GW and 56.81 GW, respectively.
INSTALLED FOSSIL ENERGY CAPACITY (MW)
INSTALLED RENEWABLE ENERGY CAPACITY (MW)
Source: Central Electricity Authority (CEA), Executive Summary on Power Sector, March 2026
This evolving energy mix is creating new opportunities across the mineral value chain. The expansion of renewable energy is driving demand for materials used in solar, aluminium, copper, rare earth magnets and transmission networks, while rising power consumption underscores the importance of reliable domestic fuels and despatchable power sources.
The National Critical Mineral Mission further reinforces this opportunity. The Mission was approved in 2025 with an outlay of ?34,300 crore, comprising Government expenditure of ?16,300 crore and expected investment of ?18,000 crore by public sector undertakings. The Mission provides policy support across exploration, mining, beneficiation, processing, recycling, and recovery activities. This policy direction aligns closely with GMDCs strategic direction in rare earth elements, copper and critical minerals, while strengthening the countrys long-termfocus on resource security and domestic value-chain development.
Policy and regulatory developments during the year also carried financial relevance. Changes relating to GST on lignite and the transition to the new labour codes affected reporting, cost assessment and compliance requirements. These developments remain relevant from both operational and financial planning perspective.
For GMDC, Indias domestic growth places its resource base within a wider demand and resource-security narrative. Lignite, bauxite, manganese, silica sand and limestone serve core industrial needs, while copper and rare earth elements add long-term strategic relevance.
Mining and Mineral Sector Outlook
Indias mining sector is entering a more execution-focussed phase, characterised by faster project development, deeper exploration, commercial mining expansion, critical mineral development and improved logistics integration. The policy framework increasingly favours mining enterprises that can combine geological expertise, project governance, technology adoption, stakeholder management and market access to convert resources into commercially viable operations.
During the year, policy initiatives shifted from broad reform objectives to implementation-led measures. Regulatory emphasis centred on accelerating approvals, digitising exploration processes, integrating mine closure planning, expanding commercial mining and strengthening critical mineral development. As a result, the operating environment has become more conducive to project execution, with greater attention on statutory-readiness, technical validation and time-bound development milestones.
A notable development was the launch of the SWCS Exploration Module in July 2025, which digitised the submission, review and approval of geological reports. This was complemented by the notification of 18 additional QCI-NABET accredited prospecting agencies for coal and lignite exploration in November 2025, a measure expected to reduce prospecting licence timelines by nearly six months. Collectively, these initiatives enhance transparency, improve work-flow efficiency and strengthen project sequencing.
The regulatory framework for mine planning also underwent a significant change. Under the revised guidelines issued by the Ministry of Coal, the Mine Closure Plan now forms an integral part of the Mining Plan, eliminating the requirement for separate approval. This integrated approach embeds environmental management, land restoration, safety considerations, and community commitments into project design, reinforcing responsible mining as a key determinant of project viability.
For GMDC, these reforms have direct implications for project execution and capital allocation. Progress across new lignite mines in Gujarat, Odisha coal blocks, copper development, limestone partnerships and critical mineral initiatives will increasingly depend on approval efficiency, technical preparedness and integrated project planning. This evolving framework also strengthens investor confidence by promoting greater visibility on project timelines, environmental obligations and long-term sustainability outcomes.
Commercial mining expanded further during the year. Captive and commercial coal production reached 210.46 MT as of 31 March 2026, reflecting growth of 10.22%, while despatch increased by 7.35% to 204.61 MT. The operationalisation of 12 additional coal blocks added more than 86 MT of annual production capacity, highlighting the growing scale and competitiveness of the sector. This reinforces the importance of efficient mine planning, logistics capability, cost visibility and customer development.
Production and Despatch figures in MT
| FY 23 | FY 24 | FY 25 | FY 26 | |
| Production | 115.78 | 147.11 | 190.95 | 210.46 |
| Despatch | 109.08 | 142.79 | 190.42 | 204.61 |
Critical minerals emerged as a major policy priority. In September 2025, the Government launched the sixth tranche of critical mineral block auctions comprising 23 blocks across 13 States and Union Territories, spanning minerals such as rare earth elements, lithium, tungsten, niobium, graphite, titanium and vanadium. Together with previous auction rounds, this reflects a sustained national effort to build secure and diversified mineral supply chains.
The sector is also moving towards real-time visibility, automated workflows and data-led operating control. IoT-enabled fleet monitoring, business intelligence dashboards, weighbridge automation, digital ledgers, quality control systems and AI-led applications are becoming relevant because they link technology directly to mine-to-market outcomes, including equipment use, vehicle cycles, despatch visibility, grade communication and coordination across operating teams.
Beneficiation and value addition are becoming central to mineral competitiveness. In bauxite, silica sand, fluorspar, copper and rare earths, future value is likely to come not only from mine output, but from grade consistency, blending capability, processing depth, downstream linkages and customer-specific applications. The sector is therefore moving from bulk despatch towards fit-for-purpose mineral solutions.
These trends align closely with the next phase of the Companys project pipeline. New lignite mines in Gujarat, Odisha coal blocks, the Ambaji Copper Project, limestone-linked partnerships, rare earth initiatives and mineral intelligence platforms all depend on faster approvals, mine closure integration, technical-readiness, digital operating systems and market linkage. The implication for the Company is that Lakshya 2030 needs to be read not only as a growth aspiration, but as a project-conversion agenda: moving from resources to permitted projects, from mineral output to customer-specific products, and from conventional mining to a more technology-enabled minerals platform.
Energy Sector Outlook
Indias energy sector in FY 2025-26 reflected a pragmatic transition, where renewable energy, coal and lignite each carried a distinct role in meeting power and industrial needs. The outlook remains balanced, with renewable capacity expanding rapidly while domestic solid fuels retain relevance for base-load power, industrial energy security and grid reliability.
India achieved the 1 billion tonne coal production milestone for the second consecutive year on 20 March 2026, reflecting the strategic place of domestic coal in the national energy system. This milestone shows that energy transition in India is progressing alongside fuel-security priorities, rather than replacing them in the near term.
Fuel access frameworks are moving towards greater flexibility, with policy measures such as Revised SHAKTI giving power generators more options to align coal linkages with market requirements. This supports wider use of domestic coal while improving responsiveness across the power sector.
The policy environment also created new momentum for coal and lignite gasification. In May 2026, the Union Cabinet approved a surface coal and lignite gasification scheme with an outlay of ?37,500 crore. The scheme targets gasification of about 75 MT of coal and lignite coal and lignite, and provides incentives up to 20% of plant and machinery cost, and extends coal linkage tenure for syngas projects up to 30 years. This opens a technology-led route for solid fuel resources across syngas, methanol, hydrogen and industrial fuel substitution, subject to technical-readiness, feedstock suitability, offtake arrangements and commercial viability.
Lignite operations showed stronger momentum toward the close of FY 2025-26, with production increasing by 12% in the quarter ended March 2026. The Company also focused on supply preparedness through planned lignite production of over 20 lakh MT for the monsoon period, supported by covered stockpiles, 24x7 mechanised quality monitoring across mines, an upgraded customer booking portal and a volume-based discount scheme at Bhavnagar Mine.
Coastal lignite movement added a new route to market. During the year, sea-route despatch coordinated through EOI customers reached approximately 39,000 MT, including around 31,000 MT in March 2026. The first movement from Bhavnagar port to Karanja port in Maharashtra marked the start of interstate lignite movement by sea, providing a practical template for serving customers beyond conventional road-linked catchments.
Over the next three to five years, Indias energy sector is expected to require both renewable capacity addition and dependable despatchable power. This creates a balanced role for GMDC across lignite, coal, LTPS, renewables and gasification-linked options. Energy security and energy transition are therefore not separate narratives for the Company. Mine-readiness, logistics flexibility, plant reliability, reclaimed land-based renewables and cleaner fuel pathways together define how the energy business is positioned to serve Gujarats industrial needs while aligning with Indias resource and transition priorities.
Product-wise External Environment
Coal and Lignite Sector Perspective
Production and Growth Overview
Indias coal and lignite sector in FY 2025-26 moved further into a reliability-led phase. Domestic coal availability became a central support for power generation, industrial fuel security and import substitution.
Commercial and captive mining also gained wider relevance. As on 31 March 2026, production from captive and commercial coal mines reached 210.46 MT, growing by 10.22% over the previous year, while despatch stood at 204.61 MT, growing by 7.35%. During the year, 12 blocks were operationalised, adding more than 86 MT of annual production capacity. This shift is changing the coal market from a largely allocation-led model to a more diversified production ecosystem.
For GMDC, coal and lignite are not only fuel sources. They are instruments of energy reliability, customer assurance and regional industrial competitiveness. As the Company takes forward Odisha coal blocks and new lignite projects in Gujarat, value creation is dependent on project-readiness, clearances, land availability, logistics planning and market linkage.
Electricity Generation and Capacity Mix
Indias electricity system in FY 2025-26 showed a practical balance between scale and transition. Total electricity generation, including renewable energy, reached 1,845.921 BU, compared with 1,828.877 BU in the previous year, recording growth of 0.93%. Fossil fuel generation accounted for 1,306.951 BU, while non-fossil generation accounted for 538.97 BU, representing 29.2% of total generation. Coal-based generation stood at 1,250.189 BU, showing that coal remains central to grid reliability even as renewable generation rises.
2025-26, growing by 21.10% over the previous year. Solar generation stood at 173.525 BU, while wind generation stood at 106.089 BU. Together, wind and solar contributed 276.614 BU, equivalent to 15.14% of total generation. This is creating a larger mineral demand base for solar glass, aluminium, copper, rare earth magnets and transmission materials.
The outlook indicates a dual requirement: dependable despatchable power and faster renewable capacity addition. This mix is also likely to raise demand for minerals used in solar glass, aluminium, copper, rare earth magnets and transmission materials. This creates a balanced opportunity across fuel and materials. Lignite and coal support dependable fuel availability for industries and power generation, while bauxite, silica sand, copper and rare earth elements align with Indias expanding clean energy and transmission infrastructure.
Government Policy Landscape
Exploration and Approval Reforms
Exploration activity during the year moved closer to project-readiness, with greater emphasis on digital workflows, clearer approval tracking and stronger alignment between geological assessment and mine development. This shift supports a more structured approach to resource validation, statutory planning and future project conversion. The notification of 18 additional QCI-NABET accredited prospecting agencies widened technical capacity for coal and lignite exploration and is expected to shorten prospecting-related timelines.
Faster geological validation and online workflows are supporting better project sequencing, particularly for mines that require coordination across technical, statutory and environmental workstreams. These measures are relevant to the Companys new lignite mines, Odisha coal blocks and future mineral projects. Digital approvals and wider exploration capacity can support faster geological validation, better project planning and clearer investor visibility.
Revised SHAKTI Policy
SHAKTI, or the Scheme for Harnessing and Allocating Koylas Transparently in India, is the policy framework for transparent allocation of coal linkages to the power sector. The Revised SHAKTI Policy, approved in May 2025, simplified coal linkage allocation into two windows. Window I provides coal linkage to Central and State Gencos at notified price, while Window II allows generators to secure coal at a premium above notified price for periods up to 25 years.
The removal of the power purchase agreement requirement under Window II gives generators greater flexibility to align fuel procurement with market opportunities. This makes the policy relevant not only for fuel availability, but also for power-market responsiveness, plant economics and domestic coal offtake. For GMDC, the policy reinforces the need to view fuel supply and power generation as linked businesses, with lignite mining, LTPS operations and future energy projects assessed in relation to market requirements, fuel economics, despatch flexibility and grid needs.
Coal Logistics Plan and Policy
The Coal Logistics Plan and Policy, launched in February 2024, stayed relevant through FY 2025-26 as implementation progressed across first-mile connectivity, rail-based evacuation and multimodal movement. The plan aims to reduce rail logistics cost by 14% and generate annual savings of around ?21,000 crore through a shift towards rail-based first-mile connectivity systems.
Implementation updates also show progress on first-mile and multimodal systems. As per Ministry disclosures, 39 first-mile connectivity projects with capacity of 386 MT had been completed, and coal movement through the Rail-Sea-Rail route rose from around 28 MT in FY 2021-22 to around 54 MT in FY 2023-24.
Coal logistics is gradually moving towards integrated and multimodal evacuation. Cost, reliability, volume commitment and route flexibility are expected to become important factors in market access, particularly for customers located beyond traditional supply catchments. For the Company, the direction of national logistics is relevant to coastal lignite movement from Bhavnagar. As volumes are assessed, multimodal logistics can become a useful lever for customer access, landed-cost optimisation and market expansion.
Digital Coal Trading Exchange
Coal market reform also advanced through the proposed coal exchange framework. The Ministry of Coal moved the reform from concept to draft-rule stage, with the Coal Controller Organisation envisaged as the regulator and coal exchanges proposed as electronic platforms for transparent trading of coal and lignite. The December 2025 draft rules indicated a shift towards a structured market with improved price discovery and wider participation by sellers and buyers. The Coal Controller Organisation has also created a dedicated Coal Exchange portal as a public window for policy visibility, document access, notices and application-readiness.
As coal and lignite trading becomes more transparent, commercial decisions are expected to depend more on grade assurance, supply reliability, despatch responsiveness and market intelligence. This creates relevance beyond pricing alone. A more visible trading environment places greater importance on quality communication, customer segmentation, faster contracting and data-led sales decisions, particularly as the Company widens customer access across existing and potential markets.
Mining Plan and Mine Closure Guidelines
The Ministry of Coal issued the Guidelines for Preparation of Mining Plan and Mine Closure Plan for Coal and Lignite Mines, 2025 on 31 January 2025. The guidelines make the Mine Closure Plan, including the Final Mine Closure Plan, an integral part of the Mining Plan.
This brings closure planning into the project design stage. Mine planning now has to account not only for extraction sequencing, but also restoration, safety, land use, community obligations and end-of-life accountability. For mining companies, this creates a more integrated planning approach, where technical viability, environmental safeguards and local acceptance are assessed together from the beginning.
The framework is relevant to the next phase of lignite, coal and future mineral projects. As the Company moves new projects through approvals, land-readiness, environmental planning and site development, early integration of closure planning is expected to support smoother project movement and responsible long-duration mining operations.
Coal Gasification and Syngas Schemes
Coal and lignite gasification gained policy focus as a long-term route to convert solid fuel resources into syngas and downstream industrial fuels, subject to technology-readiness, feedstock suitability, offtake and commercial viability. This opens a technology-led route for solid fuel resources, with possible applications across syngas, methanol, hydrogen and industrial fuel substitution. At the same time, the business case for gasification is likely to depend on feedstock quality, capital cost, technology-readiness, environmental performance and offtake arrangements. The opportunity is relevant because the Company has coal and lignite resources in Gujarat and Odisha, and such resources may find wider applications if technology, partners and downstream economics align. This positions gasification as a selective long-term option within the Companys broader energy security narrative.
Performance of GMDC: Lignite
GMDCs lignite business in FY 2025-26 reflected the practical value of local fuel security. The Company achieved lignite despatch of 78.84 lakh MT against a target of 81.40 lakh MT, despite early and extended monsoon conditions, severe waterlogging at Tadkeshwar and demand impact in the Morbi industrial cluster due to gas supply constraints. Lignite revenue stood at approximately ?2,339 crore.
The fourth quarter showed the operating depth of the business. GMDC recorded quarterly lignite despatch of 25.82 lakh MT, the highest quarterly despatch in the last seven years. Bhavnagar Mine emerged as a key supply centre, achieving its highest-ever annual despatch of 25.47 lakh MT against a target of 25.40 lakh MT. It also recorded its highest-ever monthly despatch of 3.63 lakh MT and has an estimated balance mine life of around 15 years.
Coastal movement of lignite added a new dimension to market reach. During the year, lignite movement through coastal shipping coordinated through EOI customers reached around 39,000 MT, including around 31,000 MT in March 2026. The first interstate movement from Bhavnagar port to Karanja port in Maharashtra created a practical template for reaching customers beyond Gujarat through sea logistics.
The year also sharpened the operating priorities for FY 2026-27. GMDCs lignite despatch target of 97 lakh MT will depend on lignite exposure, monsoon preparedness, quality consistency, faster truck turnaround, customer engagement and market conditions. The planned Urja-Setu initiative, online slot booking at Bhavnagar and quality optimisation at Mata-no-Madh can help convert mine-readiness into stronger customer offtake.
For GMDC, lignite is expected to be an important earnings contributor over the near and medium term. The focus will be on converting mine output into reliable customer supply through mine-readiness, flexible logistics, customer support and consistent quality systems.
SCOT Analysis
| Strengths | Challenges |
| • Coal and lignite remain important sources of baseload power and energy security in India. • Established mining, transportation, and power generation infrastructure supports reliable supply. • Significant contribution to employment, regional development, and government revenues in mining regions. | • Increasing environmental and social expectations require higher investments in emission control, land reclamation, and water management. • Managing workforce safety and community expectations remains a key operational priority. • Land acquisition, rehabilitation, and obtaining regulatory approvals can impact project timelines. |
Opportunities |
Threats |
| • Growing electricity demand in developing economies continues to support coal demand in the near to medium term. • Commercial mining, mine modernisation, and digital technologies can improve productivity and operational efficiency. • Continued demand from power generation, cement, steel, and industrial sectors support market stability. • Opportunities exist for mine reclamation, renewable energy development on mined land, and carbon management initiatives. | • Expansion of renewable energy and energy storage technologies may reduce coal demand over the long term. • Geopolitical developments and changing energy policies can influence global coal trade flows. • Climate-related regulations and decarbonisation policies could increase compliance costs and operational constraints. |
Outlook
The coal and lignite sector continues to play an important role in meeting growing electricity demand and supporting energy security, particularly in emerging economies. Supported by strong domestic demand and industrial activity, coal consumption and production are expected to remain at significant levels in the near to medium term. While the global energy transition and increasing environmental expectations may influence long-term demand trends, coal and lignite are expected to remain key sources of baseload power and support industrial growth during the transition to a lower carbon energy mix.
2025 provides a longer-term direction for the sector. It envisages scaling aluminium production sixfold by 2047 and expanding bauxite production capacity to 150 MTPA, along with higher recycling, low-carbon technologies and raw material security. This points to a market where bauxite value is expected to depend not only on availability, but also on grade consistency, blending capability, beneficiation and supply suitability for end-use industries.
Within the non-lignite mineral business of the Company, bauxite is becoming a more active opportunity. A significant portion of Minerals & Metals revenue was driven by the bauxite business, supported by auction-led market discovery and demand across cement, refractories, alumina-linked sectors and industrial applications. During the year, 4.13 lakh MT was sold through the Gadhissa auction at a premium of around 63% over the base price, demonstrating the role of transparent price discovery, grade-led positioning and trusted supply quality. The years outcome indicates that bauxite has moved beyond a volume-led opportunity. With the Minerals & Metals Division achieving despatches exceeding 30 lakh MT and revenue of approximately ?179 crore, bauxite provides a practical base for building higher-yield mineral businesses outside lignite. The next stage is likely to be shaped by repeatable customer segments, auction design, grade consistency, customer-specific supply and beneficiation potential, while retaining attention on permissions, logistics cost, customer concentration and demand cyclicality.
Minerals and Metals
Bauxite
Indias bauxite sector remains linked to aluminium demand, infrastructure activity and domestic raw-material security. Early FY 2025-26 data indicated positive momentum, with production rising from 1.87 MMT in April 2024 to 2.13 MMT in April 2025, a growth of 13.9%. The sectors relevance is expected to increase as aluminium demand, cement applications, refractory uses and industrial self-reliance priorities support long-term raw-material demand.
The Aluminium Vision Document released in 2025 provides a longer-term direction for the sector. It envisages scaling aluminium production sixfold by 2047 and expanding bauxite production capacity to 150 MTPA, along with higher recycling, low-carbon technologies and raw material security. This points to a market where bauxite value is expected to depend not only on availability, but also on grade consistency, blending capability, beneficiation and supply suitability for end-use industries.
Within the non-lignite mineral business of the Company, bauxite is becoming a more active opportunity. A significant portion of Minerals & Metals revenue was driven by the bauxite business, supported by auction-led market discovery and demand across cement, refractories, alumina-linked sectors and industrial applications. During the year, 4.13 lakh MT was sold through the Gadhissa auction at a premium of around 63% over the base price, demonstrating the role of transparent price discovery, grade-led positioning and trusted supply quality. The years outcome indicates that bauxite has moved beyond a volume-led opportunity. With the Minerals & Metals Division achieving despatches exceeding 30 lakh MT and revenue of approximately ?179 crore, bauxite provides a practical base for building higher-yield mineral businesses outside lignite. The next stage is likely to be shaped by repeatable customer segments, auction design, grade consistency, customer-specific supply and beneficiation potential, while retaining attention on permissions, logistics cost, customer concentration and demand cyclicality.
Silica Sand
Silica Sand recorded one of the most notable growth outcomes within the Minerals & Metals Division. Revenue stood at approximately ?36 crore, while despatch growth exceeded 300% over the previous year, making it the fastest-growing mineral segment during the period. This performance builds on the sharp increase seen in FY 2025-26, when silica sand sales had reached 20.91 lakh MT, reflecting a clear upward demand trajectory. This performance is particularly relevant because silica sand demand is becoming more specification-led, with customers placing higher value on purity, consistency and suitability for glass and solar-linked applications. Demand for silica sand is increasingly linked to glass, ceramics, foundry, construction and solar glass applications. Indias solar capacity reached 157.05 GW as on 31 May 2026, creating a larger demand base for glass and related materials. The business gained relevance as demand from industrial and renewable-linked applications deepened. Its commercial pathway is likely to be shaped by impurity control, consistent quality, beneficiation and reliable despatch rather than volume alone. For the Company, silica sand offers a credible route to develop a quality-led industrial mineral business with customer applications beyond conventional construction demand. For this business, beneficiation and impurity control can become the difference between bulk mineral sales and entry into higher-value industrial applications.
Fluorspar
The fluorspar business recorded a material recovery in commercial activity, with despatch and revenue growth exceeding 220% during the year. This marked an important step for a mineral that carries industrial relevance across chemicals, metallurgy and specialised applications. Fluorspar is not only a volume-led mineral. Its business potential depends on processing reliability, grade acceptance and access to specialised industrial customers. The recovery also reflects operating stabilisation and renewed customer engagement after the earlier revamp of the Ambadungar Fluorspar Mine and Kadipani Beneficiation Plant.
Beyond its revenue contribution, the project carries regional significance. The mine and beneficiation facility are located in an area with limited industrial presence, creating employment and local economic activity, particularly for nearby tribal communities. The project also gives GMDC an opportunity to link mineral development with local economic participation in a region where formal industrial activity is limited. The focus now is to convert the projects revived operating base into consistent product quality, dependable supply and wider market acceptance.
SCOT Analysis
Strengths
Bauxite, silica sand and fluorspar are critical industrial minerals with strong linkage to aluminium, glass, construction, chemicals, steel, cement, refrigerants and advanced manufacturing value chains. Bauxite supports alumina and aluminium production, silica sand supports glass and solar glass applications, and fluorspar supports hydrofluoric acid, fluorochemicals and aluminium chemicals. Demand is supported by infrastructure growth, renewable energy, electric mobility, packaging, construction and industrial production.
Challenges
Product competitiveness depends on ore quality, purity, impurity levels, particle size control and consistency of supply. Mining and processing require strong controls for land use, dust, water, tailings, emissions and site restoration Bulk material movement makes freight cost, mine location, port access and customer proximity critical for margin protection
Opportunities
Aluminium demand from mobility, power transmission and renewable energy can support bauxite demand over the medium to long term. Solar glass, specialty glass and high purity industrial applications can create stronger demand for premium silica sand grades. Fluorspar has growth potential in fluorochemicals, refrigerants, batteries, semiconductors and high performance materials. Domestic sourcing, beneficiation and value-added processing can improve supply security and create higher value mineral chains.
Threats
Commodity price volatility, energy cost movement and freight rate changes can affect profitability across all three minerals. Stricter environmental norms and permitting delays can increase project cost and affect capacity expansion. Supply concentration, trade restrictions and geopolitical risks can affect bauxite and fluorspar availability. Recycling and alternative materials may moderate demand in selected applications, particularly aluminium and glass value chains.
Outlook
Bauxite, silica sand and fluorspar are expected to remain important minerals for industrial growth and energy transition linked applications. Demand is likely to be supported by aluminium, solar glass, construction, chemicals, batteries and advanced manufacturing. Future performance will depend on mineral quality, responsible mining practices, logistics efficiency, customer linkages and regulatory-readiness.
Power and Energy
Akrimota Thermal Power Station (LTPS)
The power segment reported higher revenue during the year, with segment revenue rising to ?215.72 crore from ?160.28 crore in the previous year. At the same time, the segment recorded an operating loss of ?79.61 crore, indicating that the turnaround of Akrimota Thermal Power Station is still in progress and central to the power business. The widening loss makes LTPS a management priority, where the quality of turnaround will be measured by plant availability, heat-rate performance, maintenance reliability and fixed-cost absorption rather than generation alone.
The station has strategic relevance because it provides forward integration for lignite and supports regional power reliability. The years financial performance points to the need for better plant availability, maintenance planning, heat-rate performance, fuel logistics and fixed-cost absorption. The proposed exploration of a 350 MW lignite-based thermal expansion at LTPS also places the asset within a broader energy-security context, subject to technical, regulatory and commercial evaluation.
The business priority is therefore not only higher generation, but a more predictable operating model. A financially healthier LTPS can support lignite value capture, provide despatchable power capacity and contribute to Gujarats industrial energy ecosystem.
Renewable Energy
The renewable energy business provides a measured complement to the Companys mining and thermal energy activities. The asset base comprises 201 and 5 MW of installed renewable capacity, including wind and solar projects, with generation of ~327 and 6.5 MU respectively reported for the period. The renewable base also gives GMDC an operating reference point for balancing mining-led cash flows with lower-carbon generation assets.
Indias renewable energy capacity, excluding large hydro, stood at 230.78 GW as on 31 March 2026, with solar and wind capacity forming the largest parts of this base. This national energy mix creates mineral demand for solar glass, aluminium, copper, rare earth magnets and transmission infrastructure, linking GMDCs mineral direction with Indias energy transition priorities.
The segment also supports the Companys transition-readiness narrative. The opportunity ahead lies in evaluating renewable projects where site availability, evacuation infrastructure, commercial offtake and mining-linked land assets create a viable case. This approach allows the energy business to connect resource development with long-term land productivity and transition-linked energy needs.
Wind
Wind energy is the larger component of the renewable energy business, with 201 MW across 7 wind projects. The projects provide recurring generation from a mature asset base and add diversity to the Companys earnings profile. The maturity of these assets makes machine availability, preventive maintenance and site-level generation planning more important than capacity addition alone. In the context of Indias rising renewable capacity, these assets also support a balanced energy mix.
The operating focus for wind assets is centred on machine availability, generation efficiency, site-level maintenance and cost control. With renewable generation becoming more competitive and grid-linked, asset performance will depend on technical upkeep, scheduling discipline and timely interventions across high-generation sites. In a more competitive renewable market, performance gains are likely to come from asset productivity, not only tariff or capacity.
Solar
The solar business is anchored by the Panandhro solar plant, with installed capacity of 5 MW, developed on reclaimed mine land. The project has significance beyond generation because it demonstrates productive reuse of mined land and links mining operations with renewable energy creation.
The plant adds a measured but important element to the Companys clean energy presence. Its strategic value lies in demonstrating how legacy mining land can support future-facing energy assets, creating a model that may be assessed for replication where land, grid connectivity and project economics align. The model can be evaluated for replication where mined land, evacuation infrastructure and project economics create a viable case.
SCOT Analysis
| Strengths | Challenges |
| • Thermal power plants provide firm and despatchable electricity, which supports grid stability and peak demand management. In India, thermal power continued to contribute the highest share during peak demand periods. • Solar and wind have become highly competitive sources of new power generation, with renewables remaining among the lowest cost options for new electricity capacity globally. • A mix of thermal, solar and wind helps balance reliability, cost, fuel security and clean energy requirements. Global power systems are increasingly integrating renewables while retaining flexible generation sources. • Solar PV and wind are expanding rapidly, with solar expected to remain a leading source of renewable power growth globally through 2030. | • Thermal power plants, especially
coal-based plants, face rising pressure to reduce emissions due to climate and air quality
concerns.
• Thermal generation remains exposed to coal availability, logistics, fuel quality and fuel price movement. • Solar and wind generation depend on weather conditions and require grid flexibility, storage and balancing support. • High renewable penetration can lead to curtailment, transmission constraints and the need for better forecasting and storage systems. |
Opportunities
| Opportunities | Threats |
| • Growing electrification, industrial activity, data centres and technology-led demand are expected to increase power requirements, creating scope for both firm and renewable generation. • Solar PV is expected to be a major source of new generation growth, with IEA projecting strong annual increases in solar power output through 2030. • Wind power remains an important renewable source and continues to support clean electricity growth, particularly where strong wind resources and transmission access are available. • Battery energy storage systems, solar-wind hybrid projects and flexible thermal operations can improve grid reliability and reduce renewable curtailment. • Renovation, efficiency improvement, emission control systems and flexible operation can extend the role of thermal plants during the energy transition. | • Stricter emission norms, carbon-related policies and clean energy targets may increase compliance costs for thermal power plants. • Falling renewable costs can reduce the competitiveness of new thermal generation over time. • Rapid renewable capacity addition without matching transmission and storage expansion can lead to curtailment and lower asset utilisation. • Solar and wind output can be affected by weather, seasonal patterns and site-specific resource quality, which may affect generation forecasts and revenue stability. • Large power projects face risks related to capital cost, interest rates, land access, equipment supply chains and project execution timelines. |
Outlook
Power generation is expected to shift toward a balanced mix, with thermal power supporting reliability and grid stability, while solar and wind lead clean capacity growth. Solar PV is expected to remain a key driver of renewable power additions, with low emission sources gaining a larger share in electricity generation through 2030.
Future competitiveness will depend on fuel security, plant efficiency, grid connectivity, storage integration, forecasting capability, and regulatory-readiness. Thermal assets are likely to remain relevant for baseload and balancing needs, while solar, wind, and storage are expected to account for a growing share of new capacity additions.
Quality Initiatives
Quality systems gained greater commercial significance during FY 2025-26 as laboratory capability, accreditation and digital workflows became more central to mineral sales. NABL accreditation of coal laboratories at Bhavnagar and Mata-no-Madh marked an important step in building customer confidence, regulatory credibility and stronger assurance around product specifications. Independent testing capability also enables more transparent grade communication, lowers the scope for despatch-related disputes and gives buyers greater confidence in product suitability.
As the business base widens across lignite, bauxite, silica sand, fluorspar, copper and coal, specification control is moving closer to revenue outcomes. Customers in application-led segments place higher value on laboratory reliability, faster analysis, traceability and consistent grade communication. Modern analytical tools, digital workflows and site-level monitoring are likely to aid despatch decisions, improve grade assurance and create closer alignment between product characteristics and end-use requirements.
The function is therefore no longer limited to compliance. In lignite, testing discipline supports boiler performance and buyer trust. In bauxite, silica sand and fluorspar, it influences market acceptance and pricing. In copper, coal and rare earths, it is likely to contribute to development-readiness, beneficiation planning and customer qualification from the project stage itself. Quality assurance therefore acts as a link between operations, market access and long-term business contribution.
Exploration Activities - From Resource Assessment to Project-Readiness
Exploration activity during FY 2025-26 was directed towards converting mineral potential into development-readiness. The focus extended beyond identifying resources to building the technical base required for mine planning, beneficiation, statutory approvals and market-linked mineral development. This marks an important shift in the role of exploration, where geological assessment is increasingly tied to bankable projects, specification-led products and revenue pathways.
At Ambaji, the copper project was a key exploration and development priority. The project is positioned as Gujarats first underground copper mine and carries significance for Indias copper, zinc and lead value chain. During the year, the mining plan and mine closure plan for the Ambaji Copper Project were handed over by IBM, marking movement from geological assessment towards project structuring. The project has approximately 10 MT of copper, zinc and lead resources, planned beneficiation capacity of 500 KTPA and a projected mine life of more than 21 years.
Lignite exploration and reserve conversion also carried significance during the year. With legacy mines at different stages of maturity, future supply is linked to timely development of new lignite blocks across Kutch and South Gujarat. Exploration in blocks such as Bharkandam, EFG Valia and Ghala assists reserve conversion, mine design and project economics, while giving the Company a clearer basis to plan fuel availability for Gujarat industrial customers.
The direction ahead is to connect exploration more closely with bankability and market fit. Geological work is likely to be assessed alongside mine closure planning, logistics, grade parameters, beneficiation routes and customer demand. This approach moves exploration from a resource-identification activity to a foundation for responsible mining, application-led supply and long-term business growth.
New Frontiers - FY 2025-26 Priorities Across Energy, Minerals and Future Resources
FY 2025-26 gave clearer shape to the next phase across coal, lignite, copper, rare earths, limestone and gasification-linked options. The direction is not diversification for its own sake. It reflects a measured move into minerals and energy assets connected with industrial growth, fuel security and strategic mineral priorities for India.
This shift also reflects the wider role expected from a state mineral enterprise. GMDC is positioned to serve Gujarat industrial requirements, participate in resource security priorities for India and build businesses that combine reliable supply, processing capability, customer access and responsible mining practices.
Each growth platform is being assessed through a defined business lens covering resource quality, approval-readiness, policy fit, customer use, environmental safeguards and commercial viability. This creates a practical basis for capital allocation across near-term earnings contributors and longer-gestation mineral and energy assets.
Ambaji Copper Project - Moving Towards Project Structuring
The Ambaji Copper Project places the Company in a mineral that is central to transmission networks, renewable energy, electric mobility, industrial electronics and manufacturing. Copper also has direct relevance to Indias energy transition, making the project important beyond its regional mining footprint.
The project comprises approximately 10 MT of copper, zinc and lead resources, with planned beneficiation capacity of 500 KTPA and a projected mine life of more than 21 years. The handover of the mining plan and mine closure plan during FY 2025-26 added project clarity and created a base for technical, statutory and investment-related decisions.
The project pathway depends on more than one extraction. Beneficiation performance, metallurgical recovery, underground mining capability, environmental safeguards and market linkage for multiple metal streams are likely to define its commercial outcome. Ambaji therefore represents entry into a more complex mineral category, where technical depth and phased project movement carry as much weight as resource size.
Odisha Coal Blocks - Building the Next Energy Resource Base
The Odisha coal blocks are central to the Companys long-term energy resource plan. Baitarni West, Buraphar and Kudanali Lubri together give access to large coal resources outside Gujarat and create an opportunity to serve wider industrial and power-sector demand.
Baitarni West is the flagship block, with more than 1,000 MT of geological reserves and peak capacity of 15 MTPA. Across the three Odisha coal blocks, the resource base exceeds 2 billion tonnes, giving the Company a substantial future coal platform. The FY 2024-25 Integrated Annual Report had positioned these assets as part of the long-term growth plan, with Baitarni West targeted for operations by FY 2026.
During FY 2025-26, the focus was on moving the blocks through the project-readiness chain: land, clearances, rehabilitation, mining contracts, evacuation and customer linkage. These blocks provide long-term earnings potential, with value creation linked to the conversion of geological reserves into permitted, evacuated and market-linked production.
New Lignite Mines - Preparing Gujarats Future Industrial Fuel Supply
New lignite mines are critical to industrial fuel security in Gujarat. As existing mines mature, the next phase of supply is linked to timely development of new blocks across Kutch and South Gujarat.
The lignite pipeline includes Lakhpat Punhrajpur, Damlai, EFG Valia, Panandhro Extension, Bharkandam and Ghala. Together, these mines are expected to add a large reserve base for long-term supply to industrial users in Gujarat.
This year also highlighted why this pipeline matters. Weather disruption, waterlogging and limited fresh lignite exposure affected despatch performance at certain mines, even where customer demand was present in key clusters. This places mine-readiness, monsoon planning, drainage, land availability and evacuation planning at the centre of revenue conversion.
The outlook for lignite is linked to supply assurance. The FY 2026-27 despatch target of 97 lakh MT is expected to require mine access, exposed lignite, quality consistency and customer offtake. Over the medium term, the new lignite mines are expected to reduce dependence on ageing assets and serve MSME and industrial fuel needs in Gujarat.
Limestone and Cement Sector Integration - Converting Mineral Access into Industrial Partnerships
Limestone provides a route to connect mineral ownership with downstream industrial development. The limestone resources of GMDC in western Kutch are strategically located and provide scope to catalyse cement-led investment, regional employment and state revenue generation.
The Company has access to more than 2.5 billion tonnes of cement-grade limestone in western Kutch. Under the first wave of limestone development, 800 MT was offered to cement players, and a 40-year limestone supply agreement was signed with J K Cement.
The opportunity goes beyond raw material supply. Limestone can help catalyse cement manufacturing in western Kutch, particularly when combined with lignite availability and port-linked logistics. This creates a long-duration raw material partnership model rather than a short-cycle mineral sale model.
From an FY 2025-26 perspective, the priority is coordination across partner timelines, land-readiness, environmental approvals, water availability and infrastructure. The asset has long-term potential, with commercial movement linked to alignment across private investment, statutory processes and site development.
Rare Earths and Critical Minerals - Building India-linked Strategic Mineral Capability
Rare earths and critical minerals are becoming central to Indias industrial and technology agenda. Their role extends across electric mobility, renewable energy, electronics, defence systems and advanced manufacturing.
The rare earth initiative at Ambadungar and Bharuch places GMDC within this national priority. The FY 2024-25 Integrated Annual Report outlined more than 1 million tonnes of TREO, planned production of around 18,000 TPA of mixed rare earth carbonate, a 12,000 TPA TREO separation plant at Bharuch and around 1,800 TPA of Nd-Pr oxide capacity.
During FY 2025-26, this direction gained depth through partnerships and technology linkages. The Company entered into an MoU with NMDC for potential rare earth value chain development, received indigenous rare earth processing technology support from BARC for pilot-scale validation, and partnered with the University of Cambridge to establish an AI-powered Rare Earth Supply Chain Observatory at iCEM.
The rare earth pathway is likely to be phase-wise. These minerals require beneficiation, separation, processing technology, environmental safeguards, market qualification and specialist capability. The opportunity is material, but technically demanding. A partnership-led approach helps manage learning risk while positioning GMDC within the critical mineral security agenda of India.
Coal Gasification - Evaluating Future Uses for Coal and Lignite
Coal and lignite gasification provide a technology-led route to widen the use of solid fuel resources. The opportunity lies in converting coal and lignite into syngas and downstream products such as methanol, hydrogen, fertiliser inputs and industrial fuels. The policy setting became more supportive, with the approved surface coal and lignite gasification scheme providing incentives and longer linkage tenure for syngas projects. The opportunity remains subject to technology-readiness, feedstock suitability, offtake and commercial viability.
GMDC has explored gasification opportunities through collaborations linked to coal and lignite resources in Gujarat and Odisha. Gasification is best viewed as a long-term option rather than an immediate earnings driver. The business case is likely to depend on technology-readiness, feedstock quality, capital cost, offtake arrangements, environmental performance and downstream product economics. Where these factors align, gasification may extend the role of coal and lignite in a changing energy landscape.
Renewable Energy - Linking Reclaimed Land, Clean Energy and Long-term Asset Use
Renewable energy forms a complementary part of the Companys energy direction. The existing renewable base includes 205.9 MW of installed capacity across wind and solar projects, with generation of 327.52 MU reported for the period.
The solar project at Panandhro is significant because it uses reclaimed mine land. This creates a practical link between land restoration and energy generation, showing how mined land can be redeployed for productive use after mining activity.
The renewable opportunity is likely to be shaped by site availability, grid connectivity, commercial offtake, hybrid models and mining-linked land assets. Rather than being viewed as a separate business line, renewables provide a route to connect land use, transition-readiness and long-term resource planning.
The direction ahead is to pursue renewable opportunities where they are commercially sound, operationally feasible and aligned with the asset base. This approach connects energy transition with mining rehabilitation, industrial customer needs and responsible long-term asset use.
Financial Highlights and Business Growth Perspective
FY 2025-26 presented a financial performance narrative that extended beyond a single-year earnings summary. Three themes defined the year: lignite continued to provide the core earnings base, the balance sheet offered capacity for project-led growth, and recognition of eligible input tax credit following the GST change on lignite added financial headroom. Beneath the reported profitability, the business narrative was shaped by recovery in lignite despatches, early traction in bauxite, silica sand and fluorspar, higher investment in exploration and evaluation assets, and movement across copper, coal, rare earths, limestone and energy-linked opportunities.
Mining remained the principal earnings driver, with revenue of ?2,507.62 crore and segment operating result of ?607.49 crore. This confirms the financial role of lignite and other minerals within the business. At the same time, the decline in mining revenue compared with the previous year places greater emphasis on mine availability, weather preparedness, despatch planning and customer reach. The operating priority is clear: convert reserves into available product, product into despatch, and despatch into cash flow.
LTPS is not only a power asset; it is part of the lignite chain and an element of despatchable energy capacity. Its contribution is likely to depend on plant availability, fuel logistics, maintenance reliability, heat-rate performance and fixed-cost absorption. A stronger operating profile at LTPS would add depth to earnings and serve Gujarats requirement for dependable power.
The exceptional GST-related credit had a material bearing on reported profit. Recognition of ?492.63 crore of eligible input tax credit, along with restoration of earlier litigated credit of ?30.02 crore, lifted reported profitability and created a clearer recoverability position for tax credits. This benefit should be read with balance: it supported FY26 profit, while recurring earnings depend on mine output, customer demand, cost control, quality consistency and conversion of approved projects into operations.
Our Sustainability Pathway
The Companys sustainability pathway is built around responsible mining, clean energy, resource efficiency, community development, and strong governance. The Company has already taken several measures in this direction, including renewable energy generation through its 205.9 MW wind and solar portfolio, Zero Liquid Discharge systems, water recycling, rainwater harvesting, green belt development, mine reclamation, biodiversity initiatives, and digital monitoring of operations. Its ESG agenda is guided by defined pillars covering responsible minerals, inclusive development, ethical governance, and a conscious value chain, supported by BRSR disclosures, ISO certifications, materiality assessment, and regular performance reviews.
Going forward, GMDC aims to deepen this sustainability pathway through clean energy transition initiatives, critical minerals development, coal and lignite gasification, blue hydrogen pilots, rare earth value chain development, digital mining, AI-enabled analytics, and improved resource productivity. The Company also plans to continue expanding its social impact through healthcare, education, skill development, local employment, MSME sourcing, and community-focussed programmes in mining-linked regions. These initiatives position GMDC to create long-term value while supporting Indias energy security, industrial self-reliance, environmental responsibility, and inclusive regional growth.
2030 Growth Pathway and Strategic Priorities
The Companys 2030 growth pathway - Lakshya 2030 - is built around four connected pillars. The first is the existing lignite business, which provides the earnings base, customer reach and regional fuel relevance for Gujarat industrial users. The second is the expansion of the energy resource base through Odisha coal blocks, which adds a wider geographic platform and longer-duration resource visibility. The third is the move into strategic and transition-linked minerals, including copper, rare earth elements and limestone, which connect the business with resource security priorities for India, infrastructure growth, clean energy technologies and advanced manufacturing. The fourth is the use of partnerships, technology and processing capability to move into complex mineral value chains with a phased and commercially measured approach.
These pillars reflect a business growth plan that is broader than capacity addition alone. The emphasis is on converting resource access into permitted, evacuated, quality-assured and customer-linked businesses. In lignite, this means mine-readiness, supply assurance, quality consistency and customer-linked despatch planning. In coal, it means land-readiness, statutory approvals, rehabilitation, mining arrangements, evacuation infrastructure and market linkage. In minerals such as copper, rare earths, limestone and bauxite, it means technical validation, beneficiation potential, end-use suitability, environmental safeguards and customer qualification.
The growth plan also emphasises the changing nature of mineral demand. Industrial expansion in India requires dependable domestic fuel and bulk minerals, while energy transition and manufacturing priorities are increasing the role of copper, rare earths, silica sand, bauxite and other critical inputs. This places GMDC in a position where existing businesses provide near-term financial resilience, while new mineral and energy opportunities offer a longer development runway.
Partnerships and technology are likely to play an important role in this transition. Complex areas such as rare earth processing, coal and lignite gasification, mineral intelligence and new energy pathways require specialist capability, technical validation and market alignment. A partnership-led model provides scope to manage learning curves, access domain expertise and assess viability before larger capital deployment.
Lakshya 2030 is not a separate strategic statement; it is the connecting logic across lignite, coal, copper, rare earths, limestone, renewables and gasification-linked opportunities. The pathway points to a more integrated minerals and energy enterprise, where growth is linked to supply reliability, project conversion, customer-specific mineral solutions, responsible mining and careful capital phasing aligned with Gujarat industrial requirements and resource security priorities for India.
Responsible Mining and Resource Stewardship
For over six decades, GMDC has played a vital role in developing Gujarats mineral resources while supporting regional economic growth. As a State-owned enterprise, the Company views mining as a long-term responsibility - one that balances resource development with environmental stewardship, employee safety and community well-being.
GMDCs approach to responsible mining extends across the entire asset lifecycle, from exploration and mine planning to operations, reclamation and post-mining land use. Sustainability considerations are increasingly integrated into project evaluation and development, ensuring that environmental, social and safety factors are addressed alongside operational and economic objectives.
The Company continues to focus on scientific mining practices, efficient resource utilisation and progressive land restoration. Environmental management measures covering land rehabilitation, water conservation, emission control and ecological restoration form an integral part of operational discipline. Initiatives such as Napier grass plantation and other reclamation measures support the rehabilitation of disturbed land and promote long-term environmental value creation.
GMDCs commitment to resource stewardship is also reflected in its efforts to create productive outcomes from operating assets and by-products. The Panandhro solar project on reclaimed mining land demonstrates how former mine areas can be repurposed to support clean energy generation. Similarly, the utilisation of fly ash in mine restoration and fly ash brick applications contributes to circular resource use and environmental improvement.
Safety remains a core operating priority. Through its Environment, Health and Safety (EHS) framework, the Company continues to strengthen safety systems, workforce awareness and risk management practices to promote a safe and responsible working environment across its operations.
Equally important is GMDCs engagement with communities around its project locations. Through targeted CSR initiatives and stakeholder outreach programmes, the Company contributes to local development in areas such as education, healthcare, livelihood enhancement and community infrastructure, helping foster long-term partnerships with local stakeholders.
As GMDC expands its presence across coal, critical minerals, limestone, copper, rare earth elements, renewable energy and other emerging opportunities, responsible mining and resource stewardship will remain central to its growth strategy. By embedding sustainability principles into project development and operations, the Company aims to create enduring value while contributing to Indias resource security and sustainable development priorities.
Data-led Operations and Intelligent Systems
Technology is becoming an increasingly important enabler of GMDCs growth and operational efficiency. As the Company expands across mining, energy and emerging mineral opportunities, digital systems are helping improve visibility, strengthen controls, enhance customer experience and support faster decision-making across the mine-to-market value chain.
GMDCs digital transformation is guided by a business-led approach focussed on improving operational excellence, responsiveness and stakeholder engagement. Customer-facing platforms already enable services such as online despatch order booking, customer registration, coal distribution management and digital support systems, promoting greater transparency and ease of access.
The Companys technology investments are increasingly directed towards measurable business outcomes. Fleet monitoring, weighbridge automation, ERP workflows, customer portals, CRM, digital ledgers, quality systems and dashboards are helping improve despatch management, reduce process cycle times, enhance transaction visibility and strengthen coordination across mining, logistics, sales, finance and customer-facing functions. These initiatives support greater operational discipline while enabling faster and more informed decision-making across GMDCs geographically dispersed operations.
The next phase of transformation is expected to be driven by data, analytics and intelligent technologies. In the mining sector, artificial intelligence and advanced analytics have growing relevance in areas such as demand forecasting, fleet productivity, grade modelling, predictive maintenance, safety monitoring and decision support. In this context, the AI-powered Rare Earth Supply Chain Observatory at iCEM provides a useful reference point for how data and domain knowledge can aid strategic mineral decisions, particularly in a field where supply concentration, technology choices and market qualification matter. As GMDC evaluates opportunities in critical and strategic minerals, data-driven insights are expected to become increasingly important in strengthening planning and market intelligence capabilities.
Alongside digital adoption, the Company continues to focus on strengthening operational controls and system resilience. As business processes become more technology-enabled, areas such as cybersecurity, system availability, access management, data quality and governance assume greater importance. Robust digital controls support both business continuity and stakeholder confidence, particularly across customer platforms, despatch systems, ERP-based processes and project monitoring frameworks.
Looking ahead, GMDCs digital vision is centred on integrating mine operations, quality assurance, sales planning, procurement, finance, safety and project execution into a unified decision-making environment. By combining technology, analytics and business processes, the Company aims to convert operational data into actionable insights, enhance organisational agility and build a future-ready platform for sustainable growth.
Navigating Risks, Unlocking Opportunities
The operating environment during FY 2025-26 underscored the importance of balancing growth ambitions with operational resilience. Market dynamics, mine availability, climatic conditions, regulatory processes and changing customer requirements continued to influence business performance. At the same time, opportunities emerged through domestic resource development, expansion of strategic mineral capabilities, progress in coal and copper initiatives, and growing interest in critical minerals that support Indias long-term resource security.
GMDCs enterprise risk management framework is embedded within planning and decision-making processes. The Company actively monitors risks relating to mining operations, project execution, resource availability, market competition, regulatory compliance, environmental management, safety performance, IT systems and infrastructure reliability. This integrated approach enables timely risk mitigation while supporting sustainable growth and operational continuity.
Looking ahead, the Companys ability to advance new projects, diversify its resource portfolio and strengthen operating efficiency will remain key drivers of long-term value creation. By combining disciplined risk management with strategic investment priorities, GMDC aims to enhance resilience and capitalise on emerging opportunities across the mining and energy value chain.
Risks
As GMDC expands its portfolio across lignite, coal, limestone, copper, rare earth elements and other strategic minerals, effective project execution remains critical to unlocking long-term value. The development of new projects depends on timely land acquisition, statutory and environmental approvals, infrastructure creation, rehabilitation planning and stakeholder coordination. Delays in these areas can affect project timelines and capital deployment; accordingly, the Company continues to monitor approval-related risks closely through focussed project-level interventions and governance mechanisms.
Operational continuity remains another important business priority. During FY 2025-26, extended monsoon conditions and waterlogging at certain mining locations impacted production and despatch activities. In response, GMDC continues to strengthen mine planning, pit preparedness, drainage systems, dewatering arrangements, stockpile management, quality control and logistics-readiness to improve operational resilience and maintain supply reliability.
Market dynamics also continue to influence business performance. Changes in fuel economics, competition from imported materials and supply disruptions affecting customer industries can impact demand patterns. To address these challenges, the Company is focussed on strengthening customer engagement, improving market intelligence, enhancing logistics flexibility and adopting a more data-driven approach to customer segmentation and market development.
Product quality remains a key differentiator in maintaining customer confidence and supporting commercial competitiveness. The Companys NABL-accredited laboratories at Bhavnagar and Mata-no-Madh strengthen testing capabilities and quality assurance processes. As GMDC expands its presence across minerals such as bauxite, silica sand, fluorspar and future strategic resources, laboratory reliability, sampling accuracy, grade communication and traceability will become increasingly important in supporting customer requirements and value realisation.
In the power business, plant efficiency, availability and cost optimisation remain important performance drivers. Continuous monitoring, preventive maintenance and adherence to overhaul schedules are aimed at improving operational performance at the Akrimota Thermal Power Station (LTPS). Reliable plant operations not only support business performance but also strengthen the integration between mining and power generation activities.
Technology resilience is becoming increasingly important as operations become more digitally integrated. The Company continues to enhance system reliability through cloud-based infrastructure, backup systems, disaster recovery measures and ERP-driven process improvements. As digital platforms become central to customer engagement, quality monitoring, logistics and business decision-making, maintaining system availability, data integrity and cybersecurity remains a key focus area.
Environmental, safety and social considerations are closely integrated into GMDCs growth strategy. As the Company progresses new projects within and beyond Gujarat, emphasis is being placed on regulatory compliance, water management, rehabilitation planning, biodiversity conservation, workforce safety, community engagement and mine closure planning. These factors are increasingly important in securing approvals, maintaining stakeholder trust and supporting long-term asset sustainability.
In addition, procurement efficiency, contractor performance, equipment reliability and maintenance planning remain critical to operational success. Strong vendor management practices, preventive maintenance programmes and infrastructure-readiness help support production continuity, project execution, despatch reliability and customer service. As project activity expands, these capabilities will play an increasingly important role in delivering operational excellence and sustainable growth.
Opportunities
GMDCs growth opportunities are increasingly anchored in its ability to convert a diversified mineral portfolio into sustainable commercial value. While lignite continues to be the Companys principal business, evolving customer requirements, logistics innovation and emerging opportunities in strategic minerals are creating multiple avenues for future growth.
A key opportunity lies in strengthening the reliability of mine-to-customer supply. Demand from industrial clusters across Gujarat continues to underline the importance of dependable domestic fuel sources, particularly during periods of volatility in imported fuels and alternative energy markets. Accordingly, the Company remains focussed on enhancing mine-readiness, quality consistency, logistics efficiency and customer servicing capabilities to support stable supply and improve market responsiveness.
The Company is also placing greater emphasis on customer-centric growth. Through customer mapping, direct industry engagement, digital sales platforms and initiatives such as the proposed Urja-Setu boiler advisory programme, GMDC is deepening its understanding of fuel consumption patterns and customer requirements. These efforts are expected to support stronger customer retention, improved market penetration and more targeted commercial strategies across industrial segments.
Logistics remains an important growth enabler. The successful experience of coastal lignite movement has highlighted the potential to expand market reach beyond traditional road-based supply networks. By improving access to distant customer markets and enhancing evacuation flexibility, multimodal logistics solutions can support higher market penetration while improving supply chain resilience.
Beyond lignite, minerals such as bauxite, silica sand and fluorspar provide opportunities to diversify revenue streams and deepen customer engagement. The Companys focus is increasingly directed towards quality assurance, grade consistency, application-based marketing and value optimisation, enabling these mineral businesses to contribute more meaningfully to long-term earnings growth.
Looking further ahead, opportunities in copper, rare earth elements and other critical minerals represent an important strategic growth platform. Progress made during the year through the Ambaji Copper Project, rare earth initiatives, technology collaborations and knowledge partnerships reflects GMDCs commitment to building capabilities in mineral segments that are critical to energy transition, advanced manufacturing and national resource security. These opportunities are expected to be pursued through a phased and disciplined approach that balances growth potential with technical, regulatory and commercial considerations.
A supportive policy environment further strengthens the long-term outlook. Ongoing reforms relating to mine development, resource management, digital exploration, coal sector modernisation and energy transition initiatives are creating new opportunities for responsible resource development. Leveraging its strong resource base, operational experience and government-backed institutional strengths, GMDC is well positioned to participate in these opportunities and create sustainable value for stakeholders over the long term.
Outlook
Looking ahead, GMDCs growth trajectory will be shaped by its ability to convert a diversified resource portfolio into sustainable and customer-linked businesses across lignite, coal, bauxite, silica sand, fluorspar, limestone, copper, rare earth elements and renewable energy opportunities. The pace of this transformation will depend on timely project execution, statutory approvals, mine-readiness, environmental stewardship, technology validation, partner collaboration and market development.
In the near term, the Companys priority remains strengthening the core lignite business through reliable mine availability, quality assurance, customer engagement and logistics flexibility. Alongside lignite, minerals such as bauxite, silica sand and fluorspar offer opportunities for value enhancement through improved grade consistency, wider market access and application-specific customer solutions. Longer-gestation opportunities in Odisha coal, limestone, copper and rare earth elements are expected to progress through a phased approach, with milestones linked to approvals, infrastructure development, technology choices and capital deployment.
Over the medium term, GMDCs risk and opportunity framework is expected to be increasingly integrated across operating assets, growth projects and emerging mineral businesses. While operational priorities will focus on mine productivity, despatch reliability, customer retention and performance improvement at Akrimota Thermal Power Station (LTPS), project development efforts will continue to emphasise land acquisition, regulatory clearances, stakeholder engagement and execution-readiness. In strategic minerals, progress will depend on exploration success, beneficiation capabilities, technology partnerships, market qualification and responsible resource development practices.
The Company is also strengthening organisational resilience through enhanced governance and risk management practices. The implementation of a Business Continuity Plan (BCP) framework and the progressive digitisation of Enterprise Risk Management (ERM) processes are expected to improve risk visibility, response preparedness and decision-making effectiveness across business functions. These initiatives support proactive management of operational, project, technology and market-related risks in an increasingly dynamic business environment.
Digital systems, quality assurance, safety management, compliance frameworks and environmental planning will continue to provide the foundation for sustainable growth. By balancing earnings from its established businesses with long-term opportunities in new mines, strategic minerals and energy projects, GMDC aims to create enduring value while supporting Gujarats industrial development and Indias resource security objectives.
Internal Control and Adequacy
The internal control framework continues to support GMDCs expanding portfolio of mines, energy assets and strategic growth projects, the Company continues to strengthen its internal control framework to support efficient execution and responsible governance. Built on a foundation of structured oversight, defined responsibilities and technology-enabled controls, the framework helps maintain process reliability, transparency and accountability across business functions.
The internal audit process operates through an independent review mechanism, with quarterly audit coverage placed before the Audit Committee. The Committee is chaired by an Independent Director, and internal auditors present observations directly to the Committee, covering control design, compliance status and agreed corrective actions. The follow-up mechanism includes review of action-point closure in subsequent meetings, creating a clear review trail and audit discipline.
During the year, audit observations led to specific actions, including development of a Bank Guarantee module, recovery of old outstanding amounts from BLTPS, and department-based accounting changes in ERP. These examples indicate that the control process is linked not only to review, but also to corrective action and process refinement.
Financial proposals are subject to pre-audit review before approval, supported by maker-checker controls, payment validations and departmental scrutiny. Budgetary controls provide visibility on quarterly and annual expenditure, while major outlays are assessed through approved authority levels and internal review processes. As a Government company, the external assurance environment also includes audit by the Comptroller and Auditor General of India, including supplementary and propriety audit coverage.
The internal financial control framework covers fixed assets, payroll, entity-level controls, cash and treasury, inventory, intangible assets, revenue and receivables, financial statement closure, purchases and payables, departmental pre-audit and internal audit. Physical verification of assets through professional agencies and Chartered Accountants adds another layer of assurance over asset existence and record accuracy.
As the operating base widens, control priorities are likely to place greater emphasis on project governance, capital expenditure tracking, statutory approvals, vendor performance, digital access controls and data integrity. The framework is positioned to guide growth with process reliability, timely oversight and accountability across functions.
e-Governance
Digital governance is embedded across sales, despatch, finance and accounts, material management, internal administration and customer interface processes. ERP-based workflows, audit trails, e-Sarkar file processing, digital payments and online customer platforms provide a more traceable operating environment across the corporate office and project locations.
Customer-facing digital processes gained greater commercial relevance during the year. The achievements update records a 100% digitised sales process, transition of more than 700 customers to the online portal, 2,680 customers surveyed through market scanning, 1,757 active customers and more than 4,000 customer visits. These initiatives point to a more structured sales interface, where customer data, booking behaviour and field engagement are becoming part of operating decisions.
Digitalisation also enabled more transparent customer servicing. Online and faceless customer registration, CRM use, digital ledgers and customer mapping help align booking, payment, despatch and reconciliation. The broader digital architecture described in the business excellence submission includes ERP on cloud, BI dashboards, automated weighbridge systems, LIMS, fleet-monitoring tools and digital customer platforms. These systems provide visibility across mines, despatch, quality, finance and customer-facing teams, with outcomes linked to faster coordination, cleaner transaction trails and more informed customer engagement.
Information security and system continuity are also part of the digital governance agenda. The cyber control framework includes firewalls across project locations, advanced email security, web application firewall, sandbox scanning of file uploads, OCI Cloud Guard, EDR/XDR, CASB, MDM, patch tracking, half-yearly VAPT, centralised log monitoring, phishing simulations and disaster recovery drills. This gives the digital environment a structured control base as operational and commercial processes become more data-led.
The next phase of digital governance is likely to depend on integration, data quality and user discipline. Dashboards, CRM, online booking, ERP, customer platforms and quality systems are useful when they provide reliable information for coordination across mines, sales, finance, procurement, power and project teams. The focus is therefore on converting digital systems into measurable operating outcomes across productivity, customer servicing, grade assurance, safety oversight and decision support.
Human Resource and Industrial Relations
GMDCs people agenda is closely aligned with its evolving business portfolio spanning new mines, strategic minerals, energy projects and digital operations. As the Company advances growth initiatives across multiple sectors, capability requirements are becoming increasingly specialised, creating demand for skills in mining, geology, project planning, mineral processing, digital technologies, sustainability, safety and stakeholder management.
To support this transformation, GMDC continues to strengthen its people framework through the Rising HR initiative, anchored on five pillars - digitisation and automation, talent and capability development, employee experience and culture, data-driven HR and governance. The programme supports the Companys shift towards a more agile, technology-enabled and project-oriented organisation.
Leadership and talent development remained key focus areas during the year. Project DISHA contributed to capability building through cross-functional collaboration in the modernisation and efficiency enhancement of the Akrimota Thermal Power Station, while Project SHIKHAR focussed on developing leadership capabilities, fostering innovation and strengthening organisational alignment with GMDCs long-term growth vision. Complementing these initiatives, the Young Leaders Programme (YLP) continued to attract and nurture high-potential talent across mining, engineering, geology, environment and business functions, helping build a future-ready leadership pipeline.
GMDC continued to strengthen workforce capability through online training programmes, webinars, e-learning modules and video-based learning sessions covering safety, statutory compliance, cyber awareness, POSH, workplace ethics, mining technologies, environmental management and emerging business, ESG and regulatory developments. These initiatives support continuous learning across corporate and project locations while enhancing role-specific capabilities in operations, digital adoption, quality, safety and stakeholder management.
Security capability also received focussed attention. During the year, the Security Department undertook welfare activities for security personnel, quarterly community welfare programmes through selected project security teams, the first Security Stakeholders Conclave with participation from around 15 security agencies, induction training for 21 newly recruited ex-servicemen supervisors, professional training for 25 security officials at Rashtriya Raksha University, and an internship programme through which 27 students received exposure to industrial and corporate security practices. These initiatives add a practical layer to site preparedness, contractor interface, asset protection and community-linked security awareness.
Renewable energy initiatives also reflect the need for cross-functional capability. The RE Department progressed conductor and earth wire replacement for the 66 kV Madhavpur-Gorsar transmission line, formation of an SPV with GACL for a hybrid renewable energy project, installation of climbing systems at 67 wind turbines, rooftop solar proposals at Bhavnagar and Mevasa, optimisation planning for the 5 MW Panandhro solar plant, and feasibility assessment for solar and wind projects at Gadhissa. These initiatives require coordination across technical, finance, procurement, legal, project and site teams, showing how energy opportunities depend as much on cross-functional readiness as on asset availability.
As the asset base expands across Gujarat and Odisha, the people agenda is likely to place greater emphasis on workforce-readiness, safety behaviour, contractor interface, local engagement and capability building for project-intensive operations. Industrial relations are therefore expected to draw on structured engagement, defined HR processes, welfare measures, training, grievance channels and site-level coordination. The overall direction is to align people systems with the needs of a mining and energy enterprise that is becoming more technology-enabled, customer-oriented and project-led while retaining workplace continuity across operating locations.
Way Forward
The business outlook is centred on converting the resource base of GMDC into a more customer-linked, quality-led and project-ready minerals and energy enterprise. In the near term, lignite stays central, with revenue conversion shaped by mine-readiness, exposed lignite availability, despatch reliability, grade consistency and closer customer engagement. This earnings base provides the financial foundation for wider mineral and energy priorities.
Beyond lignite, bauxite, silica sand and fluorspar provide a broader commercial base, with business potential linked to grade consistency, beneficiation, customer-specific applications and market-based price discovery. New lignite mines, Odisha coal blocks, copper, limestone and rare earth initiatives define the medium-term growth agenda, subject to approvals, technical validation, infrastructure, partner timelines and market linkage. Across these opportunities, the priority is to move from resource access to permitted, quality-assured and customer-linked businesses.
Strategic minerals and energy options add a longer-term pathway. Copper, rare earths, critical mineral intelligence, renewables and gasification place the Company within resource security priorities for India and the energy transition agenda. Progress is likely to follow a phased and commercially measured approach, relying on partnerships, technology validation, processing capability and careful capital phasing rather than rapid expansion alone.
Digital systems, grade assurance, governance, internal controls and people capability provide the operating base for this next phase. The overall direction is to balance earnings from existing businesses with carefully sequenced growth in new minerals and energy options, while focussing on dependable supply, customer confidence, responsible mining and long-term business contribution aligned with Gujarat industrial requirements and resource security priorities for India.
Cautionary Statement
Statements within the Management Discussion and Analysis section, which articulate the Companys objectives, projections, and estimates, utilise terms such as "will", "aim", "believe", "expect", "intend", "estimate", "plan", "objective", "contemplate", "project" and similar expressions. These terms are intended to be forward-looking and progressive within the context of applicable laws and regulations. It is important to note that actual results may differ significantly from those expressed or implied by these forward-looking statements due to various risks and uncertainties, which may include economic conditions, government policies, and other incidental factors. Consequently, readers are advised to exercise caution and avoid placing undue reliance on these forward-looking statements.
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