Gala Precision FY26 Net Profit Rises 32% to ₹35.54 Cr
Gala Precision Engineering reported a 32% YoY rise in FY26 net profit to ₹35.54 crore, driven by a 32% increase in revenue to ₹314.30 crore. The SFS segment grew 64% to cross ₹100 crores, while the Chennai facility ramped up to a ₹5 crore monthly run rate. Management targets 20-25% revenue growth in FY27 and expects margins to stabilize between 17-19%.

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Gala Precision Engineering Limited 's Board of Directors approved the Audited Standalone and Consolidated Financial Results for the quarter and financial year ended March 31, 2026. The company reported a robust financial performance for the full year, with revenue from operations growing 32% year-on-year to ₹314.30 crores. Net profit for the year stood at ₹35.54 crores, compared to ₹26.90 crores in the previous year, registering a growth of 32%. EBITDA for the year increased 27% to ₹52 crores, with EBITDA margins at 16.51%.
Operational Performance and Guidance
Management attributed the growth to strong traction across its product segments, particularly Special Fastening Solutions (SFS), which crossed the ₹100 crores milestone with a 64% year-on-year increase. The company successfully entered the offshore wind turbine segment and commenced supplies of high-tensile bolts to a global wind OEM in India from its Chennai facility during Q4. For the upcoming year, the company targets overall revenue growth of 20% to 25%, with the wind energy segment expected to grow between 25% and 30%.
Chennai Facility Expansion
The new fastener manufacturing facility in Chennai, with an installed capacity of 4,600 metric tons, operated at approximately 35% utilization during FY26. The plant reached a monthly run rate of ₹5 crores by the end of the fiscal year. Management expects utilization to improve significantly, targeting monthly production of ₹9 to ₹10 crores by the end of Q4 FY27. Phase 2 capex at the facility is underway and is expected to be completed by July 2026, adding another ₹5 crores per month of capacity. The total annual capacity of the Chennai facility is projected to reach ₹120 crores.
Financial Metrics
The following table presents the key standalone financial metrics for the quarter and full year:
| Metric: | Q4 FY26 | Q3 FY26 | Q4 FY25 | FY26 | FY25 |
|---|---|---|---|---|---|
| Revenue from Operations (₹ Cr): | 94.56 | 85.25 | 75.31 | 314.30 | 237.84 |
| Total Income (₹ Cr): | 96.14 | 86.57 | 76.80 | 319.93 | 242.21 |
| Total Expenses (₹ Cr): | 81.63 | 74.57 | 65.49 | 275.63 | 209.00 |
| Profit Before Tax (₹ Cr): | 14.63 | 11.06 | 11.31 | 43.48 | 33.21 |
| Net Profit (₹ Cr): | 12.24 | 8.33 | 10.03 | 35.54 | 26.90 |
| Basic EPS (₹): | 9.61 | 6.55 | 8.67 | 27.90 | 23.28 |
On the margin front, the company reported an EBITDA margin of 17.57% for Q4 FY26. Management noted that the full-year EBITDA margin of 16.51% was impacted by a forex loss of approximately ₹3.23 crores. Going forward, the company expects margins to stabilize between 17% and 19% as it passes on raw material cost increases to customers.
Future Outlook
Gala Precision is actively pursuing land acquisition in Wada and is in discussions with SIPCOT authorities for additional land in Chennai to support future expansion. The company plans to fund the estimated ₹50 crores capex for the current year through internal accruals and bank borrowings. Export contribution is expected to remain between 35% and 40% of total sales.
Historical Stock Returns for Gala Precision Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.38% | +11.34% | +21.85% | +23.32% | +1.48% | +21.75% |
How might the EU-India Free Trade Agreement's timeline and the Carbon Border Adjustment Mechanism collectively impact Gala Precision's European export margins beyond the anticipated duty reduction?
Given the Chennai facility's target of ₹80 crores revenue in FY27 at 67–70% utilization, what risks could delay Phase 2 completion or slow customer ramp-up in the high-tensile fastener segment?
With the company reducing forward cover on forex exposure from 70% to 40%, how vulnerable is Gala Precision's EBITDA margin to currency volatility if the rupee depreciates further against the Euro or USD?


































