Gautam Gems Ltd

Gautam Gems Ltd: Trading Window closed from Thursday, October 1, 2026, until 48 hours after the announcement of the Unaudited Financial Results for the quarter and half year ending September 30, 2026

Financial highlights

• Revenue from operations: Rs 79.71 crore in FY25-26, up from Rs 78.34 crore.
• Total revenue: Rs 80.29 crore; Net profit: Rs 0.70 crore (70.13 Lakhs).
• EPS: ₹0.16; EBITDA margin: 1.59%; EBITDA growth: 53.5%.
• Finance costs down 21.28%; Debt-Equity 0.11x.
• Short-term borrowings: ₹5.54 crore; Net worth: ₹51.98 crore; Equity: ₹42.85 crore.
• Closing inventory: ₹4,837.70 Lakhs; Receivables: ₹2,334.00 Lakhs; Payables: ₹1,600.95 Lakhs.
• Cash and cash equivalents: ₹9.60 Lakhs; Dividend for FY25-26 not declared.

Industry context and strategy

• Industry shift to lab-grown diamonds; Gautam Gems positions for LGD growth.
• Hybrid model: owned core steps, outsourced volume processing; Sarin grading ensures precision.
• Export opportunities via UAE CEPA and India-UK CETA; UK subsidiary planned via AG Corporation Ltd.
• Headcount of 18 as of 31 Mar 2026; lean, specialist team supporting high-value inventory.

Capital structure and liquidity

• Equity capital ₹42.85 crore; total equity ₹51.98 crore; reserves ₹913.54 Lakhs.
• Current borrowings ₹553.94 Lakhs; cash ₹9.60 Lakhs.
• Authorised capital increased earlier to ₹75.35 crore; implementation pending.
• Overseas Direct Investment in AG Corporation Ltd. (UK) planned; remittance pending; not yet subsidiary.

Governance and leadership

• Board of five directors; Independent Directors 3 (60%).
• Seven Board meetings; 100% attendance.
• Audit, NRC, SRC committees in place; independence declarations on file.
• Secretarial Auditor changed to Madhav Upadhyay and Associates; board recommends approval.

Related party transactions and overseas investment

• RPTs conducted in ordinary course; arm's-length; omnibus Audit Committee approvals.
• Director remuneration: MD ₹3.00 Lakhs; ED ₹2.00 Lakhs; CFO ₹3.03 Lakhs.
• Overseas investment: AG Corporation Ltd. UK; remittance pending; not yet a subsidiary.

Risks and controls

• Risks include LGD price volatility, regulatory changes, currency risk, and supply chain disruption.
• Export growth supported by UAE and UK trade corridors; domestic demand resilience noted.
• Internal controls: adequate; no material weaknesses; unmodified statutory audit opinion.
• Familiarization and performance evaluation processes strengthen governance and risk oversight.

Shareholding and disclosures

• Promoters hold 21.8%; Vivid Mercantile 12.8% stake; robust promoter share base.
• 100% dematerialised; NSDL 32.33%, CDSL 67.67%; 22,865 shareholders.
• Annual report and Corporate Governance disclosures published; CSR not applicable this year.

Financials (Q1 FY27)

• Revenue from operations: ₹2,922.51 lakh in Q1 FY27 (Unaudited).
• Total revenue: ₹2,922.51 lakh; Other income: nil.
• Cost of materials consumed: ₹4,099.22 lakh.
• Changes in inventories: decrease ₹1,213.14 lakh.
• Employee benefit expense: ₹1.38 lakh.
• Financial costs: ₹6.00 lakh.
• Depreciation & amortization: Nil in Q1 FY27.
• Other administrative expenses: ₹15.46 lakh.
• Profit before tax: ₹13.59 lakh.
• Tax expense: Current ₹2.04 lakh.
• Profit for the period: ₹11.55 lakh.
• Earnings per share: Basic ₹0.03; Diluted ₹0.03.
• Board approved the results; Audit Committee reviewed.

Meeting Details

• Board meeting on 12 August 2026 at the Registered Office, Surat, Gujarat.

Key Agenda Items

• Unaudited standalone financial results for the quarter ended 30 June 2026, with Limited Review Report.

Other Notes

• Trading window closed from 1 July 2026 and opens 48 hours after results declaration.

Demat/Remat processing status

• Demat requests processed (approved/rejected) within 15 days of receipt.
• Securities dematerialised have been listed on the exchanges where the earlier issued securities are listed.
• Physical certificates for dematerialisation were mutilated and cancelled after verification; depository's name substituted as registered owner.