G M D C Q1 FY27 Results (NSE: GMDCLTD)
Signal: Margin pressure
The read
Revenue growth of 23.8% YoY was driven by Mining volume/revenue, but EBITDA margin collapsed 1200bps YoY to 29.5% as production costs (loading/overburden + royalties) surged far faster than revenue — a 6th consecutive quarter of margin contraction on our series; the bottom line was saved by a 586% surge in other income, which at 33.5% of PBT signals profit quality concern; Power segment turned loss-making; the MoUs with GNFC and IREL open strategic optionality in coal-to-chemicals and rare earths but offer no near-term earnings tailwind
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹906.64 Cr | 23.8% | 11.4% |
| EBIT | ₹233.86 Cr | -3.9% | |
| Net profit | ₹163.43 Cr | -0.2% | |
| EPS | ₹5.14 | -0.2% | |
| EBIT margin | 29.5% |
P&L walk
Revenue grew 23.8% YoY driven by Mining segment growth, but EBITDA margin collapsed 1200bps YoY to 29.5% as loading & overburden costs surged to 48.2% of revenue (+850bps) and royalties rose 150bps; other income exploded to ₹76.15 Cr (586% YoY) and compensated for margin compression, leaving consolidated PAT nearly flat at ₹163.43 Cr (-0.2% YoY)
Key positives
- Revenue grew 23.8% YoY to ₹906.64 Cr, the highest Q1 revenue in at least 5 quarters, with Mining segment up 22.7% YoY
- Mining segment PBIT grew 20.5% YoY to ₹208.07 Cr, showing operational resilience despite cost headwinds
- Other income surged to ₹76.15 Cr (586% YoY), boosting cash flow despite operating margin pressure
Key concerns
- EBITDA margin contracted 1200bps YoY to 29.5% — the 6th straight quarter of margin compression on our series — driven by loading & overburden costs rising to 48.2% of revenue (+850bps YoY)
- Power segment swung into loss (₹-6.00 Cr PBIT vs ₹10.59 Cr profit YoY), indicating cost-push or pricing challenges in the power business
- Finance cost surged 1196% YoY to ₹6.61 Cr, albeit from a low base, and depreciation jumped 51.5% YoY, pressuring profits
- Consolidated PAT flat at ₹163.43 Cr (-0.2% YoY) despite 23.8% revenue growth, highlighting significant cost inflation
Earnings quality: includes non-operating other income
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