Gala Precision Engineering Limited has informed the Exchange about Transcript
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Gala Precision Engineering reported Q1 FY26 consolidated revenue of Rs. 63 crore, up 19% year-on-year but down 16% quarter-on-quarter. EBITDA stood at Rs. 10 crore (margin 15.21%), impacted by a Rs. 2 crore forex loss on forward contract revaluation and Rs. 1 crore in additional operational costs. Net profit was Rs. 6.5 crore (margin 10.3%), up 3.2% YoY. The order book stood at Rs. 70 crore, with renewable energy contributing 37%, industrial 35%, and mobility 28%, to be executed in 3-4 months. The fastener business grew 64% sequentially from Rs. 12 crore to Rs. 20 crore. The Chennai plant commenced commercial production in July 2025, targeting Rs. 30 crore in FY26 with peak revenue potential of Rs. 120 crore. Management maintained guidance of 20-25% growth in FY26 and 17-19% EBITDA margins. The US tariff has risen from 5.5% to 25%, creating near-term uncertainty, though no order cancellations reported yet.
Near-term margins are under pressure from forex losses and rising US tariffs, but the strong order pipeline, capacity expansion at Chennai, and zero long-term debt with Rs. 25 crore in IPO corpus provide growth visibility. Investors should watch for tariff impact on exports (38% of revenue) and ramp-up of the Chennai plant in coming quarters.