Gayatri Projects Limited reported a standalone net profit of ₹3,677.53 lakh for the quarter ended June 30, 2026, reversing a net loss of ₹282.67 lakh recorded in the same period last year. Revenue from operations grew significantly to ₹22,877.35 lakh, up from ₹7,658.34 lakh in the corresponding period of FY25. EBITDA for the quarter stood at ₹402 million, reflecting a margin of 17.57%, compared to ₹95 million and 12.45% in the corresponding period of FY25. The Board of Directors approved the unaudited standalone and consolidated financial results on August 12, 2026, following a review by the Audit Committee and a limited review by independent auditors, Atmakuri & Co.

Financial performance

Revenue from operations stood at ₹22,877.35 lakh in Q1FY26, compared to ₹19,133.71 lakh in Q4FY26. Total income, including other income of ₹2,526.02 lakh, reached ₹25,403.37 lakh. Total expenses were ₹19,541.77 lakh, comprising cost of materials consumed and work expenditure of ₹13,405.29 lakh and changes in inventories of work in progress amounting to ₹3,433.03 lakh. The following table summarises key financial metrics across periods:

Profit before tax and exceptional items was ₹5,861.60 lakh. An exceptional item charge of ₹2,184.07 lakh, related to payments made to lenders under an approved one-time settlement scheme for arbitration claims, reduced the profit before tax to ₹3,677.53 lakh. No tax expense was reported for the current quarter.

Capital raise and debt settlement

During the quarter, Gayatri Projects completed a preferential allotment of 27,71,00,315 equity shares at ₹10 per share, raising ₹2,771.00 crore. This capital infusion supports the company's ongoing debt resolution strategy. Punjab National Bank approved a one-time settlement for the company's secured term loan, under which the company must pay ₹135.06 crore within three months. The lender issued a no-objection certificate allowing the sale of mortgaged immovable property to fund this payment. Management is actively negotiating with prospective buyers to complete the sale within the stipulated timeline.

What the numbers show

The transition from a loss to profit in Q1FY26 is influenced by both operational and non-operational factors. Operational profit before exceptional items improved to ₹5,861.60 lakh from a loss of ₹282.67 lakh year-on-year, while the previous quarter's loss of ₹11,027.19 lakh was driven by exceptional items totalling ₹14,277.51 lakh. The current quarter's profitability reflects improved operational margins alongside the absence of large exceptional charges that weighed on the prior period. The expansion in EBITDA margin from 12.45% to 17.57% indicates stronger operational leverage alongside the revenue growth.

Associate company exposure

Gayatri Projects maintains significant exposure to its associate, Gayatri Highways Limited (GHL), with investments totalling ₹16,770.03 lakh as of June 30, 2026. This includes non-convertible preference shares, equity capital, subordinate debt, and unsecured loans. GHL has been incurring operating losses, leading Gayatri Projects to fully provide for the subordinate debt of ₹4,556.01 lakh due to uncertainty over recoverability. No provision was made for the remaining NCPS and unsecured loan balances, as management believes these are fully recoverable based on expected claim awards and investment sales by GHL. During the quarter, GHL repaid ₹150.00 lakh against the unsecured loan.

Zeal Global Opportunities Fund acquired a 5.06% stake in Gayatri Projects Limited by purchasing 1,50,00,000 equity shares through preferential allotment on April 23, 2026. The acquisition was disclosed to the stock exchanges under Regulation 29(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The acquirer does not belong to the promoter or promoter group of the target company.

Acquisition Details

The transaction involved the purchase of shares carrying voting rights. Prior to this acquisition, Zeal Global Opportunities Fund held no shares or voting rights in Gayatri Projects Limited. The preferential allotment resulted in the acquirer holding 1,50,00,000 shares, which constituted 5.06% of the total share capital and voting rights of the target company immediately post-acquisition.

Capital Structure Changes

The equity share capital of Gayatri Projects Limited increased following the allotment. Before the acquisition, the total equity share capital stood at ₹37,43,97,370, comprising 18,71,91,685 shares of nominal value of ₹2 each. Post-acquisition, the equity share capital rose to ₹59,23,97,370, consisting of 29,61,98,685 shares of nominal value of ₹2 each.

Subsequent Dilution

A note accompanying the disclosure indicated that the share capital of Gayatri Projects Limited increased further on April 22, 2026. The total number of shares rose to 46,42,99,000. As a result of this increase, the holding of Zeal Global Opportunities Fund diluted from 5.06% to 3.23%.

The disclosures were submitted to BSE Limited and National Stock Exchange of India Limited, where the shares of Gayatri Projects Limited are listed.