Gala Precision Engineering Ltd

Gala Precision Engineering Limited: Trading window will remain closed from Thursday, Oct 01, 2026, till the completion of 48 hours after the declaration of the Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and Half year ended September 30, 2026.

Meeting Details

• Date: 29 September 2026.
• Participants: Group of investors.
• Mode: Virtual interaction.
• Organizer: Arihant Capital Markets Ltd.
• Venue: Mumbai.
• Purpose: Participation in an investor meeting.

Meeting Details

• Date: 23 September 2026.
• Type and mode: In-person, group investor meeting.
• Venue: Mumbai.
• Event/organiser: Analyst/Institutional Investor Meeting.

Participants

• Participants: Group of investors.

Purpose

• Purpose: Investor interaction via scheduled analyst/institutional meeting.

Business overview

• Leading Indian precision components manufacturer focused on SFS, DSS, and CSS.
• 800+ SKUs; 175+ customers across renewables, industrials, and mobility.
• Exports to 25+ countries; Frankfurt office supports overseas business.
• Export share 33.7% in Q1 FY27.
• Listed on BSE/NSE; FY22–FY26 revenue CAGR 22%, PAT CAGR 52%.

Operational highlights

• New coil springs plant commissioned.
• Wada DSS capacity: 225,517,000 units; 85% utilization.
• CSS capacity: 20,941,200 units; 75% utilization.
• SFS capacity at Chennai: 420,000 units; 78% utilization.
• FY26 revenue mix: DSS 49%, CSS 17%, SFS 34%.

Financial performance

• FY26 revenue 3,143 INR Mn; EBITDA 519 INR Mn; PAT 355 INR Mn.
• FY26 EBITDA margin 16.51%; PAT margin 11.29%.
• Q1 FY27 revenue 754 INR Mn; EBITDA 123; PAT 82 INR Mn.
• Export share in Q1 FY27: 33.7%.

IPO proceeds & liquidity

• IPO proceeds in monitoring account: 1,212.4 INR Mn; fully utilized.
• Total utilized from net proceeds: 873.4; balance 339.0 INR Mn.
• Loans repaid with net proceeds: 454.3 INR Mn.
• Chennai CAPEX utilized 297.3; Wada CAPEX 110.5; General corporate 11.4.
• Balance for general corporate: 266.1 INR Mn.

Capital structure & liquidity

• Cash and cash equivalents: 115; bank balances: 390 INR Mn.
• Total assets FY26: 3,745 INR Mn; Equity FY26: 2,925 INR Mn.

Strategic priorities & outlook

• Identify opportunities in hydrogen/Electrolyzer, EVs, and high-speed trains.
• Expand product range in fasteners & springs; larger addressable market.
• Increase exports via local hires and Europe/USA warehousing.
• Move up value chain with advanced materials, kitting, smart fasteners.
• Strengthen application engineering and customized solutions.

Governance & leadership

• Kirit Gala: Chairman & MD; other directors include Snehal Shah, Neha Gada, Varsha Galvankar, Sudhir Gosar.

Tax proceedings

• Income Tax Department proceedings at the company's premises have concluded with no material impact on operations.
• The company has extended full cooperation and will continue to provide information as required.
• Operations continued in the normal course during the income tax proceedings.

Tax proceedings

• Income Tax Department proceedings commenced on August 18, 2026.
• Proceedings are at the registered office and promoter Kirit Gala’s residence.
• Company cooperating and providing documents and clarifications; no specific violation communicated.
• No quantified impact on financials or operations; proceedings are ongoing.
• Company will inform exchanges of material developments under Regulation 30.

Financial Performance

• Q1 FY27 revenue from operations around INR 75 crores, +20% YoY.
• Q1 FY27 EBITDA around INR 12 crores; margin 16.51%.
• Net profit INR 8 crores, +29% YoY; PAT margin 11.44%.
• FY27 EBITDA margin guidance 17%–19%.
• Forward cover on EUR/USD around 40%; forex hedges in place.
• Tax rate guided around 20%; benefits from Section 35(1)(i) deductions and ESOP allowances.

Operational Update

• DSS sales grew 31% YoY; 54% of revenue in Q1 FY27.
• SFS contributes 29% of revenue, INR 223 million.
• CSS contributes 17% of revenue, INR 125 million.
• HDG plant commissioned at Chennai; bolt development completed.
• MoU for acquisition of 10.15 acres at Wada to support expansion.
• New hot-dip galvanized facility installed at Chennai.

Capacity and Capex

• Chennai Phase 1 utilization ~70–80% in Q1; ~80–90% in Q2.
• Phase 2 capacity partly in Q3; Phase 1–2 utilization ~70% by Q4.
• Chennai Phase 2 mezzanine floor 10,000 sq ft; completion by Q2.
• Wada land capex planned ~INR 40–45 crores next year.
• 15 acre Wada land MoU under due diligence; press release forthcoming.

Guidance and Outlook

• FY27 guidance: revenue growth 20–25% YoY; margins 17–19%.
• Wind turbine fastener contribution ~10% of total fastener sales by FY27.
• Q1 wind-turbine fastener share of total sales ~25–26%.
• Chennai utilization to reach ~70% by year-end; Phase 2 adds capacity.
• First bulk order from electrolyzer manufacturer highlights diversification.

Q&A Highlights

• KPMG engaged for working-capital optimization; actions planned by Q3.
• Order book ~INR 110 crores on July 1; prior year ~INR 80–85 crores.
• Chennai HDG in-house reduced outsourcing cost; enabled new orders.
• Kitting contributes ~15–17% of sales; could rise to 15–20% per demand.
• Aerospace/defense entry remains exploratory; no near-term impact.

Earnings call update

• Audio recording of earnings call for quarter ended June 30, 2026 held on 07 Aug 2026 is released.
• Recording is available on Gala Precision Engineering's website at www.galagroup.com.

Issue Overview

• IPO of Equity Shares.
• Total issue size and net proceeds disclosed; no revision/undersubscription.
• Objects include setting up Tamil Nadu facility; capex for Wada; debt repayment; general corporate purposes.

Utilisation of Proceeds

• Utilisation is as disclosed; no material deviations observed.
• Facility deployment remains partial; significant unutilised funds and delays.
• Wada capex largely deployed; minimal unutilised funds; no major delay.
• Borrowings fully repaid; no unutilised funds.
• GCP largely unutilised; funds parked in fixed deposits and monitoring account.
• Issue expenses fully utilised.
• Unutilised proceeds total are held in fixed deposits and a monitoring account.

Governance and Compliance

• All statutory approvals for objects obtained.
• GCP allocation approved by the Board; resolution dated Aug 6, 2026.
• No material adverse events or regulatory actions reported.
• Machinery procurement and vendor changes discussed; flexibility allowed per prospectus.
• Note 2 documents government approvals obtained for the objects.
• Fund deployment delays noted; dates extended to subsequent periods.

General Corporate Purpose (GCP)

• GCP utilised for automation at Chennai plant and M&A advisory fees.
• Board approved the GCP allocations with August 6, 2026 resolution.
• Total GCP utilisation remains a small portion of gross proceeds.
• Note 13 confirms board approval for GCP heads.