Gandhi Special Tubes Q1 net profit up 29% to ₹279.4 lakh
Gandhi Special Tubes posted a 29% YoY rise in Q1FY27 net profit to ₹279.4 lakh, supported by 19% revenue growth to ₹571.9 lakh. EBITDA margins widened to 46.58% from 43.11%. Other income contributed significantly to the bottom line via investment gains.
*this image is generated using AI for illustrative purposes only.
Gandhi Special Tubes Limited reported a strong start to FY27, with standalone net profit rising 29% year-on-year to ₹279.4 lakh for the quarter ended June 30, 2026. The Mumbai-based manufacturer saw revenue from operations expand 19% to ₹571.9 lakh, reflecting sustained demand in its core segments. Operating efficiency improved significantly, with EBITDA margin expanding to 46.58% from 43.11% in Q1FY26.
The company’s Board of Directors approved the unaudited financial results on August 12, 2026, alongside a limited review report from statutory auditors S.V. Doshi & Co. The board also noted the name change of Company Secretary Chaitali Kachalia to Mrs. Chaitali Parekh.
Financial Performance
Revenue growth was accompanied by an expansion in operating margins, as total expenses grew at a slower pace than income. Profit before tax stood at ₹361.2 lakh, up from ₹279.6 lakh in the corresponding period last year. Earnings per share (EPS) increased to ₹22.99 from ₹17.78 in Q1FY26.
| Metric | Q1FY27 (₹ Lakh) | Q1FY26 (₹ Lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 571.95 | 481.06 | +19% |
| Other Income | 103.71 | 80.70 | +29% |
| Total Expenses | 314.46 | 282.12 | +11% |
| Profit Before Tax | 361.21 | 279.65 | +29% |
| Net Profit | 279.37 | 216.09 | +29% |
Operational costs remained controlled, with employee benefits expenses rising 14% to ₹30.5 lakh and power & fuel costs increasing 33% to ₹38.3 lakh. Depreciation remained stable at ₹8.6 lakh.
What the Numbers Show
A significant portion of the company’s profitability improvement stems from non-operational sources. Other income surged to ₹103.7 lakh, primarily driven by a gain on fair value of investments of ₹93.2 lakh. This contrasts sharply with the previous quarter (Q4FY26), which recorded a loss of ₹62.4 lakh on similar items. While operational revenue grew steadily, the volatility in investment valuation highlights a dependency on market-linked gains for margin expansion in this period.
Auditor’s Note
S.V. Doshi & Co., the statutory auditors, issued a limited review report stating that nothing came to their attention to suggest the financial statements contained material misstatements. The figures for the quarter ended March 31, 2026, are balancing figures between audited full-year results and reviewed year-to-date figures.
Historical Stock Returns for Gandhi Special Tubes
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.37% | -1.72% | +0.56% | +7.40% | -6.49% | 0.0% |
How sustainable is the 46.58% EBITDA margin given that a significant portion of the profit growth was driven by non-operational fair value gains on investments?
What specific strategies is Gandhi Special Tubes employing to mitigate the volatility in other income arising from market-linked investment valuations?
Will the 33% increase in power and fuel costs signal a broader trend of rising operational expenses that could pressure margins in subsequent quarters?
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