Gallantt Ispat Q4 FY26 results: net profit up 5.6% to ₹122.83 crore, revenue up 12.4%

How did Gallantt Ispat perform in Q4 FY26?

Gallantt Ispat reported consolidated revenue of ₹1,205 crore in Q4 FY26, up 12.4% from ₹1,072 crore in Q4 FY25 and 12.2% from ₹1,074 crore in Q3 FY26. EBITDA was ₹184.39 crore, compared with ₹183.12 crore and ₹153.66 crore in the respective comparatives.

The consolidated EBITDA margin declined to 15.3% in Q4 FY26 from 17.1% a year earlier, a fall of 1.8 percentage points, but increased from 14.3% in Q3 FY26, a rise of 1.0 percentage point. Profit before tax was ₹161.61 crore, up 2.0% from Q4 FY25 and 31.3% from Q3 FY26.

Net profit was ₹122.83 crore, up 5.6% from ₹116.31 crore in Q4 FY25 and 22.3% from ₹100.41 crore in Q3 FY26. Basic EPS was ₹5.09, compared with ₹4.82 and ₹4.16, respectively. On the standalone basis, revenue was ₹1,204.81 crore and net profit was ₹122.84 crore.

What changed in Gallantt Ispat's costs and profit?

Total expenses increased to ₹1,068 crore in Q4 FY26 from ₹925.26 crore in Q4 FY25, a rise of 15.4%. Cost of materials increased by ₹165.99 crore, or 23.6%, to ₹868.26 crore, while employee cost rose by ₹9.59 crore, or 29.8%, to ₹41.72 crore.

Finance costs rose by ₹8.27 crore, or 151.7%, to ₹13.72 crore. Depreciation increased by ₹2.79 crore, or 9.1%, to ₹33.58 crore, and other expenses rose by ₹7.26 crore, or 6.9%, to ₹112.72 crore. The filings do not state the reasons for these cost movements.

Other income increased by ₹12.89 crore, or 110.8%, to ₹24.52 crore, while tax expense fell by ₹3.42 crore, or 8.1%, to ₹38.78 crore. There was no exceptional item in either quarter, so profit before tax rose by ₹3.10 crore to ₹161.61 crore despite the higher expenses.

How did Gallantt Ispat do in FY26 as a whole?

For FY26, Gallantt Ispat reported consolidated revenue of ₹4,418.92 crore, up 2.9% from ₹4,292.73 crore in FY25. Total income rose 4.0% to ₹4,478.52 crore from ₹4,308.34 crore, while profit before tax increased 6.3% to ₹604.03 crore from ₹568.09 crore.

Net profit for FY26 was ₹484.27 crore, compared with ₹400.74 crore in FY25, an increase of 20.8%. Basic EPS rose from ₹16.61 to ₹20.07, also up 20.8%, while the PAT margin increased from 10.8% in Q4 FY25 to 10.2% in Q4 FY26.

What do the balance sheet and cash flow show?

At 31 March 2026, total assets were ₹4,269.62 crore, compared with ₹4,103.19 crore at 30 September 2025, and total equity was ₹3,316.23 crore against ₹3,105.19 crore. Borrowings fell to ₹547.69 crore from ₹656.8 crore, while cash rose to ₹101.65 crore from ₹0.37 crore.

Inventories increased to ₹550.75 crore from ₹470.11 crore and trade receivables rose to ₹177.58 crore from ₹132.12 crore. Trade payables were ₹171.5 crore at 31 March 2026, against the previous balance sheet date. FY26 operating cash flow was ₹602.26 crore, compared with ₹578.8 crore in FY25.

Investing cash flow was negative ₹627.36 crore in FY26 against negative ₹459.9 crore in FY25, while financing cash flow was positive ₹121.42 crore against negative ₹113.89 crore. Capital expenditure increased to ₹348.15 crore from ₹242.22 crore.

How has Gallantt Ispat done over the last 8 quarters?

Revenue over the last eight quarters peaked at ₹1,204.81 crore in Q4 FY26 and bottomed at ₹942.57 crore in Q2 FY25. Q4 FY26 revenue was therefore higher than the prior quarterly peak of ₹1,159.69 crore recorded in Q1 FY25.

Net profit reached its high of ₹173.79 crore in Q1 FY26 and its low of ₹48.89 crore in Q2 FY25. It fell to ₹88.93 crore in Q2 FY26 before rising to ₹100.41 crore in Q3 FY26 and ₹122.83 crore in Q4 FY26.

The EBITDA margin peaked at 21.9% in Q1 FY26 and bottomed at 10.4% in Q2 FY25. It then moved to 13.0% in Q2 FY26, 14.3% in Q3 FY26 and 15.3% in Q4 FY26, showing a sequential recovery from the Q2 FY26 low.

What else did the company announce?

The board recommended a final dividend of 20% for FY26, equivalent to ₹2.00 per equity share of face value of ₹10 each, subject to shareholder approval at the upcoming Annual General Meeting. Payment is to be made within 30 days of declaration at that meeting, while the record date will be intimated later.

The company filed that promoter and promoter-group shareholders, except a few promoter-group shareholders, voluntarily waived their entitlement to the final dividend to retain funds for ongoing expansion. Smita Modi and Pankaj Khanna resigned as independent directors effective from the close of business on 5 May 2026, citing work pressure, pre-occupation, lack of time and other engagements.

The board appointed Sanjay Kumar Jain and Kishore Pariyar as additional non-executive independent directors with effect from 5 May 2026, initially until the ensuing general meeting. Their appointment as independent directors for five years is subject to member approval, and the board also reconstituted its audit, nomination and remuneration, stakeholders relationship, and corporate social responsibility committees.

What did the auditors point out?

Maroti and Associates, Chartered Accountants, issued an audit report with an unmodified opinion on Gallantt Ispat’s financial results for the year ended 31 March 2026. The report contains an emphasis of matter concerning an Income Tax Department search conducted on 26 April 2023 and the reopening of assessment under section 147 of the Income-tax Act, 1961.

The auditors stated that no dispute or demand arose for the period covered by the reopened assessment and that their opinion was not modified in respect of this matter. The excerpts also describe the responsibilities of the board and management for preparing the results, assessing going concern, maintaining internal financial controls and overseeing financial reporting.

What did Gallantt Ispat's management say?

Management said revenue could reach ₹5,300-5,400 crore after expansion from FY27, compared with the FY26 base of ₹4,500 crore, as steel capacity rises to 1.3 mtpa. It set an EBITDA-margin target of about 20%, against the current 15-17%, and expects EBITDA per tonne to improve by about ₹2,000 from captive iron ore mine integration once commissioning begins in FY28.

The company plans ₹3,000 crore of capital expenditure across FY27 and FY28: ₹1,200 crore for steel, ₹300 crore for 78 MW of solar capacity and ₹1,500 crore for mines. Management expects annual solar cost savings of ₹30-40 crore from FY27 and targets capacity utilisation of 90-92% in FY27 against the current 88%.

Management identified mine-development timelines, execution of the ₹3,000 crore programme and possible equity dilution under a balanced funding plan as risks. Vice Chairman Dindayal Jalan said the main challenge was implementing a sizeable investment through a balanced funding proposal with equity and external borrowing, and that the company wanted to acquire more mines to complete its integration.

CEO Mayank Agrawal said holding its ratio steady through a volatile cost environment reflected the advantage of integration and procurement discipline. Management also reported a net cash surplus of ₹360 crore and said ₹800 crore had been deployed in ICDs at 12% for treasury management.

How did Gallantt Ispat shares react?

The filing appeared after market hours. Gallantt Ispat was down 0.5% after five minutes, 0.5% after 15 minutes and 1.7% after 30 minutes. It closed the reaction session down 4.8% from the previous close, while the Iron & Steel Products industry median rose 0.6%, leaving the stock 5.4 percentage points below the sector.

Earlier reaction-day moves were mixed: Gallantt Ispat rose 10.6% on 29 July 2025, fell 1.2% on 21 May 2025, rose 5.5% on 5 February 2025 and rose 5.0% on 12 August 2024. The 4 February 2026 reaction was a 1.0% rise.

How did other Iron & Steel Products companies do?

Among 100 Iron & Steel Products companies compared for the quarter, the median revenue growth was 9.4%. Gallantt Ispat’s revenue growth was below that median: 57 peers grew more slowly and 43 grew faster than the company.

Of the 110 peers used for the profit comparison, 64 reported higher profit. The peer comparison is dated 5 November 2026, while Gallantt Ispat’s results were announced on 5 May 2026.