Gautam Gems Q1 Results: Net profit up 79% YoY, revenue rises

Gautam Gems reported a significant improvement in profitability for the quarter ended June 30, 2026, with net profit rising 78.8% year-on-year to ₹11.55 lakh. The Surat-based diamond manufacturer saw revenue from operations grow by 24.5% to ₹2,922.51 lakh, outpacing the previous year’s figure of ₹2,347.92 lakh. This performance underscores the company’s ability to manage cost structures effectively despite volatile market conditions in the gem sector.

The Board of Directors approved the unaudited standalone financial results on August 12, 2026, during a meeting held at the company’s registered office. The results were reviewed by the Audit Committee and subjected to a limited review by M/s. Shah Karia & Associates, Chartered Accountants, the statutory auditors of the company. The filing complies with Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Overview

Revenue growth was primarily driven by higher sales volumes and strategic inventory management. While cost of materials consumed increased to ₹4,099.22 lakh from ₹2,679.50 lakh in the same period last year, this was offset by a substantial reduction in inventory values. Changes in inventories of finished goods and work-in-progress contributed a negative ₹1,213.14 lakh to expenses, compared to a negative ₹442.92 lakh in Q1FY26, indicating a drawdown in stock levels that positively impacted the bottom line.

Metric	Q1FY27 (₹ Lakh)	Q1FY26 (₹ Lakh)	Change
Revenue from Operations	2,922.51	2,347.92	+24.5%
Total Expenses	2,908.93	2,339.47	+24.3%
Profit Before Tax	13.59	8.46	+60.6%
Net Profit	11.55	6.46	+78.8%
EPS (Basic)	₹0.03	₹0.02	+50.0%

Administrative efficiency also played a key role in margin expansion. Other administrative expenses fell sharply to ₹15.46 lakh from ₹80.68 lakh in the corresponding quarter of the previous year. Employee benefit expenses remained stable at ₹1.38 lakh, down slightly from ₹15.11 lakh in Q1FY26. Financial costs were contained at ₹6.00 lakh, marginally lower than the ₹7.10 lakh recorded in Q1FY26.

What the Numbers Show

The divergence between revenue growth (24.5%) and expense growth (24.3%) highlights improved operational leverage. The most material driver was the inventory adjustment, which reduced total expenses significantly relative to revenue. Additionally, the near-elimination of other administrative expenses suggests successful cost-control measures. With profit before tax rising 60.6% to ₹13.59 lakh, the company demonstrated an ability to convert top-line growth into bottom-line gains more efficiently than in the prior year period.

The trading window for insiders remains closed until 48 hours after the declaration of financial results, as per the SEBI (Prohibition of Insider Trading) Regulations, 2018. The results are available on the company’s website and have been published in newspapers as required.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.99%	+1.32%	-1.92%	-13.52%	-31.32%	-62.52%

Gautam Gems Limited reported a net profit of ₹40.68 lakh for the quarter ended March 31, 2026, driven by revenue from operations of ₹2,022.29 lakh. For the financial year ended March 31, 2026, the company recorded a net profit of ₹70.13 lakh, a significant increase from the previous year's ₹28.43 lakh. The board approved the audited financial results for the fourth quarter and fiscal year 2026 during a meeting held on May 28, 2026.

The company's total income for Q4FY26 stood at ₹2,074.27 lakh, while total expenses were ₹2,018.10 lakh. For the full year, total income reached ₹8,029.16 lakh against total expenses of ₹7,934.54 lakh. The basic earnings per share for continuing operations for the year was ₹0.16, up from ₹0.07 in the previous year.

Financial Performance

The Statement of Profit & Loss highlights the following key figures for the period:

Metric	Q4FY26 (₹ in Lakhs)	FY26 (₹ in Lakhs)
Revenue from operations	2,022.29	7,971.22
Total Income	2,074.27	8,029.16
Total Expenses	2,018.10	7,934.54
Net Profit for the period	40.68	70.13

The balance sheet as of March 31, 2026, shows total assets at ₹7,425.40 lakh, compared to ₹7,109.34 lakh in the previous year. Total equity increased to ₹5,198.15 lakh from ₹5,127.43 lakh, while total liabilities rose to ₹2,227.26 lakh from ₹1,981.91 lakh.

Auditor's Observations

M/s. Shah Karia & Associates, Statutory Auditors, issued an unmodified opinion on the financial results. However, the auditor's report noted several matters requiring attention. Trade receivables, loans, advances, and trade payables outstanding for more than three years are under dispute and subject to litigation, with the auditor unable to comment on their realizable value. Additionally, the company has not paid Tax Deducted at Source (TDS) to government authorities in due course, resulting in non-compliance regarding statutory dues. The report also noted that miscellaneous expenditure not to be written off was not disclosed as per IND AS.

Regulatory Disclosures

Pursuant to Regulation 33 of the SEBI Listing Regulations, the company submitted the audited financial results along with the auditors' reports. The trading window for insiders remained closed until 48 hours after the declaration of the financial results. The company also clarified a clerical error in the previously submitted results, where financial year figures were erroneously reported for the previous year's quarter ended March 31, 2025, which has now been corrected without impacting current period figures.