GALAPRECGala Precision Engineering Ltd.
Gala Precision Engineering Q2 FY27 Results: Standalone Net Profit ₹10.56 Crore on Total Income of ₹95.02 Crore
- Earnings
- Springs and fasteners manufacturing
Reviewed byKeshav SehgalBlacklitt Research
Gala Precision Engineering reported standalone total income of ₹95.02 crore and net profit of ₹10.56 crore for the quarter ended 30 Sep 2026, it said in a filing on 05 Nov 2026.
Key highlights
Standalone
The company on its own, without its subsidiaries
- Total income: ₹95.02 crore, up 30.6% YoY and 24.2% QoQ
- Net profit and EPS: Net profit ₹10.56 crore, up 25.9% YoY; basic EPS ₹8.25, up 25.0% YoY
- Tax expense: ₹2.44 crore, up 110.3% YoY; 18.8% of profit before tax against 12.1% a year earlier
- Income tax search: Proceedings ongoing; the consequential impact, if any, cannot presently be ascertained
Summary
| Particulars | Q2 FY27 | Q2 FY26 | YoY | Q1 FY27 | QoQ |
|---|---|---|---|---|---|
| 95.02 | 72.76 | +30.6% | 76.52 | +24.2% | |
| Revenue from operations | 93.74 | 71.41 | +31.3% | 75.38 | +24.4% |
| Other income | 1.28 | 1.35 | -5.2% | 1.14 | +12.3% |
| 10.56 | 8.39 | +25.9% | 8.21 | +28.6% | |
| Finance costs | 0.57 | 0.53 | +7.5% | 0.45 | +26.7% |
| Depreciation | 3.36 | 2.31 | +45.5% | 3.17 | +6.0% |
| Tax expense | 2.44 | 1.16 | +110.3% | 1.43 | +70.6% |
| Net profit margin | 11.11% | 11.53% | -0.42 pp | 10.73% | +0.38 pp |
| Tax as share of profit before tax | 18.8% | 12.1% | +6.62 pp | 14.8% | +3.94 pp |
| EPS, basic (₹) | 8.25 | 6.60 | +25.0% | 6.41 | +28.7% |
Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.
Net profit grew more slowly than income over the year. Standalone net profit rose 25.9% to ₹10.56 crore, while total income rose 30.6% to ₹95.02 crore. Quarter on quarter the pattern is reversed: net profit rose 28.6% from ₹8.21 crore, faster than the 24.2% rise in total income.
Tax took a larger share of profit. Tax expense rose 110.3% to ₹2.44 crore from ₹1.16 crore a year earlier, and was 18.8% of profit before tax against 12.1%. Profit before tax rose 36.1%, from ₹9.55 crore to ₹13.00 crore. The statement splits the quarter's tax into current tax of ₹2.75 crore and a deferred tax credit of ₹0.31 crore. The reason for the higher tax charge is not known from this filing.
Operating revenue is the bulk of income. Revenue from operations rose 31.3% to ₹93.74 crore, while other income fell 5.2% to ₹1.28 crore. Other income is 1.3% of total income and 9.8% of profit before tax. Depreciation rose 45.5% to ₹3.36 crore and finance costs rose 7.5% to ₹0.57 crore.
Note 3 records an exceptional item in the year ended 31 Mar 2026. It says a one-time increase of ₹82 lakh in the provision for employee benefits followed the New Labour Codes, effective 21 Nov 2025, and was recognised as an exceptional item in that year.
Inference
Note 6 says the Income Tax Department conducted search proceedings at certain premises of the company during the period. The company has received multiple summons and notices, and has attended personal hearings. The proceedings are ongoing, no final order has been received, and the consequential impact, if any, on the financial results cannot presently be ascertained.
On capital, the IPO net proceeds of ₹121.24 crore had ₹89.57 crore utilised till 30 Sep 2026 and ₹31.67 crore unutilised. The note says ₹31.49 crore of the unutilised amount is temporarily invested in fixed deposits. The company issued 18,650 equity shares under the ESOP Scheme 2021 in the half year.
Note 1 says the statutory auditors expressed an unmodified opinion on the standalone results. The consolidated review report says two subsidiaries, whose interim results the auditors have not reviewed, show total revenues of nil and net losses after tax of ₹7 lakh and ₹23 lakh before consolidation adjustments, and that management considers them not material to the group. Not stated: why revenue and tax rose, and what the tax search may cost the company.
Filed with BSE on . Reference: Original filing (PDF)
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