Gayatri Projects Q1 EBITDA up 323% to ₹402 crore; net profit turns positive
Gayatri Projects posted a Q1FY26 net profit of ₹3,677.53 lakh, reversing a prior quarter loss. Revenue jumped to ₹22,877.35 lakh YoY. EBITDA reached ₹402 million with a 17.57% margin, up from ₹95 million and 12.45% in Q1FY25.
*this image is generated using AI for illustrative purposes only.
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 ₹11,027.19 lakh recorded in the previous quarter. The company’s revenue from operations grew significantly to ₹22,877.35 lakh, up from ₹7,658.34 lakh in the same period last year. 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. The results were reviewed by the Audit Committee and subjected to a limited review by the independent auditors, Atmakuri & Co.
Financial Performance
Revenue from operations stood at ₹22,877.35 lakh in Q1FY26, compared to ₹19,133.71 lakh in the fourth quarter of FY26. 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.
| Metric | Q1FY26 (₹ Lakh) | Q4FY26 (₹ Lakh) | Q1FY25 (₹ Lakh) |
|---|---|---|---|
| Revenue from Operations | 22,877.35 | 19,133.71 | 7,658.34 |
| Total Income | 25,403.37 | 22,463.02 | 7,978.09 |
| Total Expenses | 19,541.77 | 17,992.55 | 8,260.76 |
| PBT (Excl. Exceptional) | 5,861.60 | 4,470.47 | (282.67) |
| Net Profit After Tax | 3,677.53 | (11,027.19) | (282.67) |
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. There was no tax expense 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 has approved a one-time settlement for the company’s secured term loan. Under this scheme, the company must pay ₹135.06 crore within three months. The lender has 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 heavily influenced by non-operational factors. While operational profit before exceptional items improved to ₹5,861.60 lakh from a loss of ₹282.67 lakh year-on-year, the previous quarter’s loss of ₹11,027.19 lakh was largely driven by exceptional items totaling ₹14,277.51 lakh. Consequently, the current quarter’s profitability reflects both improved operational margins and the absence of large exceptional charges that impacted 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
The company maintains significant exposure to its associate, Gayatri Highways Limited (GHL), with investments totaling ₹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. However, 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.
Historical Stock Returns for Gayatri Projects
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.54% | -2.34% | -12.53% | +51.18% | +132.73% | +209.68% |
Will the successful sale of mortgaged immovable property within the three-month deadline ensure full compliance with Punjab National Bank's one-time settlement terms?
How might the continued operating losses at associate Gayatri Highways Limited impact Gayatri Projects' future provisions or investment valuations?
Can the 17.57% EBITDA margin expansion be sustained in subsequent quarters as revenue scales, or was it driven by temporary cost efficiencies?
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