Galaxy Bearings Limited reported a net profit of ₹298.77 lakh for the quarter ended June 30, 2026, marking a 15.26% increase from ₹259.21 lakh in Q1FY25. This profitability surge occurred despite a 5.54% year-on-year decline in revenue from operations to ₹1,594.92 lakh, driven by effective cost management and a significant reduction in legal expenses following the removal of the company from the United States Department of Treasury’s Specially Designated Nationals and Blocked Persons (SDN) List on June 30, 2026. The lifting of sanctions restores the company’s ability to access USD and EURO through official banking channels, paving the way for normalized international trade.

The Board of Directors approved the unaudited standalone financial results at its meeting held on August 07, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory Auditors J. T. Shah & Co. issued a limited review report on the results. The company also published the results in Western Times (English and Gujarati editions) on August 08, 2026, pursuant to Regulation 47 of the SEBI LODR Regulations. The Board scheduled the 36th Annual General Meeting (AGM) for September 22, 2026, to be conducted via Video Conferencing or Other Audio-Visual Means (VC/OAVM).

Financial Performance

Total income for the quarter stood at ₹1,887.95 lakh, compared to ₹1,944.19 lakh in Q1FY25. Other income contributed ₹293.03 lakh, up 14.62% from ₹255.65 lakh in the prior year, partially offsetting the operational revenue decline. Total expenses decreased by 6.67% to ₹1,490.43 lakh from ₹1,596.98 lakh in Q1FY25. Profit before tax rose to ₹397.51 lakh from ₹347.21 lakh in the corresponding period of the previous year.

Earnings per share (basic and diluted) were ₹9.40, compared to ₹8.15 in Q1FY25. Finance costs declined to ₹39.35 lakh from ₹61.80 lakh in the previous year. Depreciation and amortization expense was ₹37.56 lakh, down from ₹41.94 lakh. Equity share capital remained unchanged at ₹318.00 lakh.

Regulatory Developments and Management Changes

The Office of Foreign Assets Control (OFAC) removed Galaxy Bearings Limited from the SDN List on June 30, 2026, concluding proceedings that began when the company was designated on October 30, 2024. The designation had cited allegations regarding the export of dual-use equipment to Russia, which the company contested. During the review period, the company incurred professional fees of ₹0.969 crore for US-based legal counsel, a significant reduction from ₹8.84 crore in the previous year. The removal permits transactions involving US persons and through the US financial system, with management expecting a gradual normalization of international business operations.

The Board approved the re-appointment of Bharatkumar Keshavji Ghodasara as Whole-Time Director for a five-year term commencing September 01, 2026, subject to shareholder approval at the AGM. Ghodasara holds 15,600 equity shares, representing 0.49% of the company’s capital. Central Depository Services (India) Limited (CDSL) was appointed to facilitate remote e-voting, while Alankit Assignments Limited will manage the VC/OAVM logistics. Mr. Jignesh Kotadiya, Practicing Company Secretary, was appointed as Scrutinizer for the voting process.

What the Numbers Show

The improvement in net profit despite a decline in revenue from operations highlights the impact of cost management and other income streams. While revenue fell by approximately ₹93.62 lakh, total expenses decreased by roughly ₹106.55 lakh, driven largely by lower finance costs and reduced professional fees related to the OFAC matter. The surge in other income further bolstered the bottom line, suggesting that non-operational factors played a critical role in the quarter’s profitability trajectory as the company navigates its return to normal global trading conditions.

Galaxy Bearings has been removed from the Specially Designated Nationals and Blocked Persons (SDN) List maintained by the US Office of Foreign Assets Control (OFAC). This development marks a significant regulatory update for the company.

Removal From US OFAC SDN List

The US OFAC SDN List is a roster maintained by the United States Department of the Treasury, identifying individuals and entities subject to economic and trade sanctions. Inclusion on this list typically restricts the ability of US persons and entities to engage in transactions with the designated parties.

The removal of Galaxy Bearings from the SDN List means that the sanctions-related restrictions previously associated with the company's designation have been lifted by the US OFAC. This delisting is a notable regulatory milestone for the company.