Galaxy Bearings Limited has made a further advance payment of ₹1 crore towards the proposed acquisition of agricultural land in Gujarat. The payment was made on August 27, 2026, bringing the total advance paid to ₹4.76 crore.

The company disclosed the update to the BSE under Regulation 30 of the SEBI (LODR) Regulations, 2015. This follows earlier disclosures dated May 2, 2026, and June 11, 2026.

Transaction Details

The land is situated at Village Shapar, Taluka Kotda Sangani, District Rajkot, Gujarat. It admeasures approximately 7,588 sq. meters and is identified by Old R.S. No. 254 and New R.S. No. 422/3.

The proposed seller is Mr. Samjibhai Pragajibhai Dhameliya. The latest payment of ₹1 crore was made through banking channels and will form part of the final consideration, subject to the execution of definitive documents.

Status of Acquisition

The transaction remains under evaluation. It is subject to due diligence, finalization of commercial terms, execution of definitive agreements, and applicable statutory approvals.

No sale deed or transfer of ownership has been executed as on date. The company stated that all other disclosures from previous communications remain unchanged.

Bhumika Teli, Company Secretary and Compliance Officer, confirmed the disclosure from Ahmedabad.

Galaxy Bearings reported a sharp decline in profitability for the financial year ended March 31, 2026, with net profit falling 75.86% to ₹330.99 lakh. The drop followed a 35.22% contraction in revenue from operations to ₹6,751.10 lakh, weighed down by subdued demand and significant legal expenses related to U.S. trade sanctions.

The bearing manufacturer’s total income slid to ₹6,968.18 lakh from ₹10,674.65 lakh in the previous fiscal year. Profit before tax (PBT) contracted by 75.04% to ₹462.33 lakh, reflecting both lower operational volumes and increased finance costs.

Financial Performance and Cost Pressures

Revenue from operations dropped to ₹6,751.10 lakh from ₹10,421.86 lakh in FY25. The company attributed the decline to lower sales volumes, reduced customer offtake, and intensified market competition. Total expenses fell to ₹6,505.85 lakh from ₹8,822.15 lakh, but the reduction was insufficient to offset the revenue loss.

Finance costs surged 79.13% to ₹224.70 lakh from ₹125.44 lakh, driven by higher borrowing costs. Depreciation and amortization expenses decreased slightly to ₹173.74 lakh from ₹191.64 lakh.

Legal Expenses Impact

A material drag on profitability was the legal expenditure associated with the company’s designation on the U.S. Office of Foreign Assets Control (OFAC) Specially Designated Nationals (SDN) list. Galaxy Bearings incurred ₹6.70 crore in professional fees during FY26, compared to ₹2.14 crore in the prior year. These costs were recorded under other expenses.

What the Numbers Show

The financial data reveals a severe divergence between operating performance and non-operating costs. While revenue declined by approximately ₹3,670 lakh, the absolute increase in OFAC-related legal fees alone accounted for ₹4.56 crore of additional expense. This suggests that even if revenue had remained stable, the net profit would have been significantly compressed by these specific regulatory defense costs.

Furthermore, the company’s reliance on investment gains is evident. Other income stood at ₹217.08 lakh, including a net gain of ₹64.95 lakh on mutual fund investments. This represents roughly 19.7% of the total net profit after tax, indicating that investment returns played a notable role in cushioning the bottom line during a period of operational stress.

Balance Sheet and Cash Flow Signals

Total assets decreased to ₹13,953.21 lakh from ₹14,975.08 lakh. Current assets stood at ₹9,301.39 lakh, dominated by trade receivables of ₹3,809.68 lakh and current investments of ₹3,464.94 lakh. Inventories reduced to ₹1,892.72 lakh from ₹2,457.51 lakh, aligning with the lower production volumes.

Borrowings declined to ₹1,813.36 lakh from ₹2,909.04 lakh, improving the debt-equity ratio to 0.16 from 0.27. However, cash and cash equivalents remained low at ₹26.18 lakh, suggesting tight liquidity management despite the debt reduction.

Corporate Governance and AGM Details

The company will hold its 36th Annual General Meeting on September 22, 2026, via video conferencing. Key agenda items include the re-appointment of Whole-time Director Bharatkumar Ghodasara for five years with revised remuneration, and the ratification of cost auditor fees.

No dividend was recommended for FY26 as the board opted to conserve resources. The entire net profit of ₹330.99 lakh has been retained in earnings.

Regulatory Developments

Galaxy Bearings was designated under Executive Order 14024 by OFAC in October 2024, restricting its access to USD and EUR transactions. The company contested the designation, citing lack of knowledge regarding sanctioned entities. Subsequent to the fiscal year-end, OFAC confirmed the removal of Galaxy Bearings from the SDN list effective June 30, 2026, allowing the normalization of international business operations.