Gala Precision Engineering FY26: Revenue ₹314.30 Cr, Net Profit ₹35.54 Cr, Q4 EBITDA Margin 17.89%

Gala Precision Engineering Limited 's Board of Directors, at their meeting held on May 14, 2026, approved the Audited Standalone and Consolidated Financial Results for the quarter and financial year ended March 31, 2026. The board meeting commenced at 3:30 PM (IST) and concluded at 5:40 PM (IST). Statutory auditors M/s SCA and Associates, Chartered Accountants, issued an unmodified opinion on both the standalone and consolidated financial results, as declared by Chairman & Managing Director Kirit Vishanji Gala pursuant to Regulation 33(3)(d) of SEBI Listing Regulations. Subsequently, on May 15, 2026, Company Secretary and Compliance Officer Pooja Ladha filed a newspaper advertisement under Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, confirming that the audited financial results were published in Financial Express and Mumbai Navshakti. The advertisement has also been made available on the company's website.

Q4 Operational Highlights

Gala Precision Engineering posted strong operational performance in Q4, with EBITDA rising to ₹170M compared to ₹130M in the same period last year, reflecting a year-on-year improvement. The EBITDA margin expanded to 17.89% from 17.33% in the corresponding prior-year quarter. On a standalone basis, Q4 net profit came in at ₹122M versus ₹100M in Q4 of the previous year, while Q4 revenue from operations stood at ₹945M compared to ₹753M year-on-year.

Standalone Financial Performance

The company delivered robust standalone financial performance for the quarter and full year ended March 31, 2026. The following table presents the key standalone financial metrics:

Metric: Q4 FY26 Q3 FY26 Q4 FY25 FY26 FY25 Revenue from Operations (₹ Cr): 94.56 85.25 75.31 314.30 237.84 Other Income (₹ Cr): 1.58 1.32 1.49 5.63 4.37 Total Income (₹ Cr): 96.14 86.57 76.80 319.93 242.21 Total Expenses (₹ Cr): 81.63 74.57 65.49 275.63 209.00 Profit Before Tax (₹ Cr): 14.63 11.06 11.31 43.48 33.21 Net Profit (₹ Cr): 12.24 8.33 10.03 35.54 26.90 Basic EPS (₹): 9.61 6.55 8.67 27.90 23.28 Diluted EPS (₹): 9.33 6.38 8.42 27.10 22.61

On a standalone basis, total income grew to ₹319.93 crores in FY26 from ₹242.21 crores in FY25. Net profit for the full year stood at ₹35.54 crores compared to ₹26.90 crores in the previous year. An exceptional item of ₹0.82 crores was recognised during the year, arising from a one-time increase in provision for employee benefits following the Government of India's consolidation of multiple labour legislations into four Labour Codes effective November 21, 2025.

Consolidated Financial Performance

The consolidated results encompass Gala Precision Engineering Limited (Holding Company), Gala Springs LLP (Subsidiary), and Gala Precision Components (Shanghai) Private Limited (Step Down Subsidiary). Reserves (excluding Revaluation Reserve) as on March 31, 2026 stood at ₹280.09 crores. The following table highlights the key consolidated financial metrics:

Metric: Q4 FY26 Q3 FY26 Q4 FY25 FY26 FY25 Revenue from Operations (₹ Cr): 94.56 85.25 75.31 314.30 237.84 Total Income (₹ Cr): 96.14 86.57 76.80 319.93 242.21 Total Expenses (₹ Cr): 81.57 74.49 65.47 275.41 208.82 Profit Before Tax (₹ Cr): 14.62 11.03 11.27 43.39 33.13 Net Profit After Minority Interest (₹ Cr): 12.24 8.31 10.00 35.48 26.85 Basic EPS (₹): 9.60 6.53 8.65 27.85 23.23 Diluted EPS (₹): 9.33 6.36 8.41 27.05 22.56

Consolidated exceptional items for FY26 amounted to ₹1.13 crores, which include expenses relating to the winding up of a foreign subsidiary in addition to the labour code-related provision. Two subsidiaries reported total net loss after tax of ₹0.07 crores (before consolidation adjustments) for the year ended March 31, 2026, and their financial results have been certified by the management of the Holding Company.

Standalone Balance Sheet Highlights

The standalone balance sheet as at March 31, 2026 reflects continued asset expansion and a strengthened equity position, as detailed below:

Parameter: 31-Mar-26 (₹ Cr) 31-Mar-25 (₹ Cr) Total Non-Current Assets: 130.50 105.56 Total Current Assets: 244.55 214.30 Total Assets: 375.05 319.86 Total Equity: 292.55 256.43 Total Non-Current Liabilities: 11.00 9.19 Total Current Liabilities: 71.50 54.24 Total Liabilities: 82.50 63.43

Property, plant and equipment stood at ₹84.43 crores as at March 31, 2026, up from ₹60.67 crores a year earlier, reflecting ongoing capital expenditure. Cash and cash equivalents improved significantly to ₹11.44 crores from ₹1.44 crores. Net cash from operating activities for the year was ₹10.20 crores compared to ₹2.80 crores in the previous year.

IPO Proceeds Utilisation

The company completed its Initial Public Offer on September 09, 2024, raising ₹121.24 crores (net of IPO expenses of ₹14.11 crores) through a fresh issue of 25,58,416 equity shares at ₹529 per share. The utilisation of net IPO proceeds as at March 31, 2026 is summarised below:

Object of Issue: Proposed (₹ Cr) Actual Net Proceeds (₹ Cr) Utilised till Mar 31, 2026 (₹ Cr) Unutilised as on Mar 31, 2026 (₹ Cr) New facility at Vallam-Vadagal, SIPCOT, Sriperumbudur, Tamil Nadu: 37.00 37.00 28.43 8.57 Capex at Wada, Palghar, Maharashtra: 11.07 11.07 9.34 1.73 Repayment/prepayment of borrowings: 45.43 45.43 45.43 - General corporate purposes: 27.91 27.74 0.92 26.82 Total: 121.41 121.24 84.12 37.12

As at March 31, 2026, ₹37.12 crores of IPO proceeds remain unutilised. The company noted that the total funds net balance amounts to ₹37.10 crores, with the difference of ₹0.02 crores representing TDS on FD interest to be set off against interest income in the subsequent quarter. The company is engaged in the manufacture and sale of springs, parts, fasteners, and assemblies, and operates as a single primary segment under Ind AS 108.

The Board of Directors of Gala Precision Engineering , at its meeting held on May 14, 2026, approved the re-appointment of three Non-Executive Independent Directors for their second terms, based on the recommendation of the Nomination and Remuneration Committee. The re-appointments are subject to shareholder approval by way of Special Resolution at the ensuing Annual General Meeting. The disclosures were made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Re-appointment Details

The following table summarises the key terms of each re-appointment approved by the Board:

Director: Term Tenure Start Tenure End Ms. Neha Rajen Gada Second term – 3 consecutive years November 30, 2026 November 29, 2029 Mr. Snehal Bhupendra Shah Second term – 5 consecutive years November 30, 2026 November 29, 2031 Mr. Sudhir Tokarshi Gosar Second term – 3 consecutive years January 11, 2027 January 10, 2030

All three directors have individually confirmed that they meet the criteria of independence under Section 149 of the Companies Act, 2013, and Regulation 16 of the SEBI Listing Regulations. Each has also confirmed that they have not been debarred from holding the office of Director by any order of the Securities and Exchange Board of India or any other authority. None of the three directors is related to any other Director of the Company.

Director Profiles

Ms. Neha Rajen Gada

Ms. Neha Rajen Gada is a Chartered Accountant, a Law Graduate, and a Resolution Professional who began her professional career in 1997. She served in managerial positions for eight years at BSE Limited across departments including Corporate Services, Surveillance, and Supervision, where she was instrumental in conceptualising and implementing various compliance systems and modules for the stock exchange. She currently runs a consultancy firm specialising in SEBI Regulations and NBFCs, with expertise spanning Securities Laws, Stock Exchange Compliances, Corporate Restructuring, Mergers, ESOPs, SME Listing, Takeover Code, SEBI Exemption and Consent applications, and advising on Resolution Plans for listed companies.

Mr. Snehal Bhupendra Shah

Mr. Snehal Bhupendra Shah is an electrical engineering graduate from Sardar Patel University (1991) and holds a PGDM from IIM Bangalore (1995). He brings 21 years of experience in private equity investing, having started his career with ICICI Venture Funds Management Company Limited. He subsequently spent 5 years at ICICI Venture before moving to Actis Advisers Private Limited, where he worked for 8 years. He then joined Fairwinds Private Equity as a Partner from 2008 to 2015. Throughout his career, he was involved across the full value chain of private equity—from deal identification to exit strategy execution. He left the private equity sector in 2015 and is also an active investor in public and private markets.

Mr. Sudhir Tokarshi Gosar

Mr. Sudhir Tokarshi Gosar holds a B.Tech in Chemical Engineering from IIT Mumbai. He spent 15 years with Tata Burroughs / Tata Unisys / Tata Infotech as a computer consultant, working on software development assignments including data communications and networking on the Burroughs mainframe. His client engagements included Burroughs Computer (Philadelphia, US), DATEV (Nuremberg, Germany), and BBL (Brussels). He subsequently joined In2cable, a Cable ISP of the Hinduja Group, as Chief Technology Officer for 7 years, followed by a role as CTO at Reliance Infocom / Reliance BIG TV, a DTH operation and subsidiary of RCOM. He later joined Telecom Software Elitecore as President, Cable & ISP Business—a company subsequently acquired by Sterlite Technologies. He presently works as a consultant in the Networks and Security domain.

Compliance and Regulatory Context

The re-appointments and accompanying disclosures have been made in accordance with Regulation 30 of the SEBI Listing Regulations, read with SEBI Circular No. SEBI/HO/CFD/CFDPoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The filing was signed by Pooja Ladha, Company Secretary and Compliance Officer of Gala Precision Engineering.

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