Galaxy Bearings Limited has disclosed advance payments aggregating to ₹3.51 crore in connection with a proposed transaction for the purchase of agricultural land in Gujarat. The disclosure was made to BSE Limited on May 02, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated that the advance payments constitute a material financial outflow, warranting disclosure as a material event.

The proposed land acquisition involves a property measuring approximately 7,588 sq. meters, identified as Old R.S. No. 254, New R.S. No. 422/3, situated at Village Shapar, Taluka Kotda Sangani, District Rajkot, Gujarat. The total indicative consideration for the transaction is ₹6 crore, subject to final negotiation and execution of definitive documents. The purchase is intended for business purposes and is expected to support the company's operational and strategic requirements.

Advance Payment Details

The company has made the following advance payments toward the proposed transaction:

All payments have been made through banking channels. The transaction does not fall under related party transactions, according to the disclosure.

Transaction Status and Approvals

As of the disclosure date, no formal or binding agreement has been executed for the proposed purchase. The transaction remains at a preliminary stage and is subject to due diligence, finalization of commercial terms, execution of definitive agreements, and applicable statutory approvals. The indicative timeline for completion is yet to be finalized and will be determined upon execution of definitive agreements.

The Board of Directors, in its meeting held on December 08, 2025, had authorized designated officials to explore, negotiate, and undertake necessary actions, including making payments, in relation to the proposed purchase. The matter is being placed before the Board for appropriate noting and/or ratification.

Disclosure Delay and Internal Controls

The company acknowledged that the advance payments were not escalated through formal compliance reporting channels at the time of occurrence due to an internal communication lapse. Upon identification during internal review, the matter has been initiated for appropriate internal approvals and ratification. The company has stated that it has taken steps to strengthen internal controls and reporting mechanisms to ensure timely disclosure of material events going forward.

The proposed transaction has not been concluded, and no transfer of ownership or execution of sale deed has taken place as of May 02, 2026. The company indicated that it shall make appropriate disclosures as and when there are further material developments in this matter.

Galaxy Bearings Limited announced its audited financial results for the quarter and financial year ended March 31, 2026, following a Board meeting held on May 02, 2026. The company reported a total income of Rs. 6968.18 lakh for the financial year ended March 31, 2026, compared to Rs. 10674.65 lakh in the previous year. Revenue from operations stood at Rs. 6751.10 lakh for FY26, while other income amounted to Rs. 217.08 lakh.

Financial Performance Overview

The company's profit after tax for FY26 was Rs. 330.99 lakh, a significant decline from Rs. 1371.15 lakh reported in the previous financial year. For the quarter ended March 31, 2026, the company recorded a profit of Rs. 107.76 lakh. Basic and diluted earnings per share (EPS) for FY26 stood at Rs. 10.41, compared to Rs. 43.12 in the previous year.

Balance Sheet Position

As of March 31, 2026, the company's total assets stood at Rs. 13953.21 lakh, compared to Rs. 14975.08 lakh in the previous year. Total equity increased to Rs. 11007.62 lakh from Rs. 10676.88 lakh in FY25. Current liabilities reduced to Rs. 2732.15 lakh from Rs. 4068.97 lakh in the previous year, while borrowings decreased to Rs. 1813.36 lakh from Rs. 2909.04 lakh.

Auditor Appointments and Compliance

The Board of Directors approved the re-appointment of M/s. Mitesh Suvagiya & Co., Cost Accountants, as Cost Auditor for the financial year 2026-27. Additionally, M/s. M N V Patel & Co LLP, Chartered Accountants, was re-appointed as Internal Auditor for FY26-27. The statutory auditors, M/s. J T Shah & Co., issued an audit report with an unmodified opinion on the standalone financial results for the quarter and year ended March 31, 2026.

Regulatory Disclosures

The company disclosed that it has been designated on the Specially Designated Nationals and Blocked Persons (SDN) List by the Office of Foreign Assets Control (OFAC), U.S. Department of the Treasury, since October 30, 2024. As a consequence, the company has been unable to access USD and EURO denominated transactions through official banking channels during the period from October 30, 2024 to March 31, 2026. The company has engaged legal counsel in the United States and filed an application with OFAC seeking expedited removal of its designation from the SDN List. The company incurred a significant and non-recurring expenditure of Rs. 6.70 Crores during the review period towards professional fees for legal counsel, which has been disclosed in "Other Expenses". The matter remains pending before the relevant authorities.