GALA Global Products Limited has received a formal demand notice under the SARFAESI Act from HDFC Bank Limited, marking a significant development in the company's debt resolution process. The notice, issued under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, demands immediate attention to outstanding credit facilities.

Outstanding Debt Details

The demand notice specifies total outstanding dues of Rs. 6,99,13,608.13 as on March 15, 2026. The debt comprises two main components:

The original sanctioned limits included a Cash Credit facility of Rs. 6,22,10,000.00 and a BBG-WC Term Loan facility of Rs. 83,50,000.00, with total sanctioned limits of Rs. 7,05,60,000.00.

Timeline and NPA Classification

The company's account was declared as Non Performing Asset on December 23, 2025, with outstanding dues of Rs. 6,69,92,798.08 at that time. The demand notice was dated March 16, 2026, and the company received communication about it on March 20, 2026, at the residential address of one of the directors.

Secured Assets at Risk

HDFC Bank holds security interest in multiple industrial properties located in Ahmedabad:

All properties are located in Shree Laxmi Cooperative Industrial Estate Ltd., Rakhial, Ahmedabad, and are registered as mortgaged securities with the bank.

Company's Proactive Efforts

Prior to receiving the SARFAESI notice, GALA Global Products had approached HDFC Bank on February 26, 2026, with a comprehensive repayment plan. The company had requested a 30-day extension until March 31, 2026, to finalize arrangements with a prospective buyer for the collateral properties. The company expressed commitment to full closure of the entire Rs. 6.22 crore limit along with applicable interest.

Statutory Compliance and Next Steps

Under the SARFAESI Act provisions, the company has 60 days from the notice date to discharge the full liability of Rs. 6,99,13,608.13 plus accruing interest at 18% per annum from March 16, 2026. Failure to comply within this timeframe may result in the bank taking possession of secured assets and proceeding with their sale through lease, assignment, or auction.

The company has stated its intention to discharge the entire liability within the statutory 60-day period and confirmed that there is currently no impact on day-to-day operations. The management remains committed to ensuring a smooth settlement of dues with the bank.

Gala Global Products Limited has announced its unaudited financial results for the quarter ended December 31, 2025, revealing a challenging performance with the company reporting a net loss. The Gujarat-based company published its quarterly results in Financial Express newspapers on February 17, 2026, as per regulatory requirements under SEBI listing obligations.

Financial Performance Overview

The company's financial performance for Q3 FY26 showed mixed results with revenue growth but profitability concerns. Total income from operations increased to ₹856.31 lakhs compared to ₹706.99 lakhs in the corresponding quarter of the previous year, representing a year-over-year improvement in operational revenue.

Nine-Month Performance Analysis

The nine-month period ended December 31, 2025, presented more concerning trends for the company's overall financial health. The company reported a total comprehensive loss of ₹274.61 lakhs for the nine-month period compared to a profit in the previous year's corresponding period.

Capital Structure and Share Information

Gala Global Products maintained its equity share capital structure during the quarter. The company's paid-up equity share capital remained stable at ₹2729.40 lakhs with a face value of ₹5 per share. The earnings per share for the quarter declined significantly to ₹(0.06) from ₹0.01 in the same quarter of the previous year.

Regulatory Compliance and Governance

The financial results were reviewed by the company's Audit Committee and subsequently approved by the Board of Directors at their meeting held on February 13, 2026. The company has maintained compliance with SEBI regulations by publishing the extract of its unaudited financial results in newspapers as required under Regulation 47 of SEBI listing obligations.

Company Operations and Background

Gala Global Products Limited operates from its registered office in Ahmedabad, Gujarat, with branch offices across multiple states including Gujarat, Andhra Pradesh, Telangana, Uttar Pradesh, and West Bengal. The company is led by Managing Director Prahlad Kumar Agarwal, who signed the regulatory filings for the quarter.