Gravity India Limited has scheduled its 39th Annual General Meeting (AGM) for September 25, 2026, to seek approval for a ₹90 crore Qualified Institutions Placement (QIP) and a strategic pivot into the technology sector. The Board of Directors approved these proposals in its meeting held on September 1, 2026.

The company will conduct the AGM via Video Conference or Other Audio-Visual Means (VC/OAVM). The register of members and share transfer books will remain closed from September 19, 2026, to September 25, 2026. Remote e-voting is open from September 22, 2026, at 9:00 am until September 24, 2026, at 5:00 pm. The cut-off date for determining eligible shareholders is September 18, 2026.

QIP and Strategic Expansion

The board approved raising up to ₹90 crore through a QIP in one or more tranches. Proceeds will primarily fund working capital requirements, with up to 25% allocated for general corporate purposes. The equity shares issued under the QIP will rank pari-passu with existing shares. The issue must be completed within the period permitted under SEBI ICDR Regulations.

Additionally, shareholders will vote on altering the Main Objects Clause of the MOA. This special resolution aims to enable Gravity India to undertake businesses in:

• Information Technology and related services
• Data centres, data storage, data processing, and cloud infrastructure
• Manufacturing and development of semiconductors and related components

Other Agenda Items

The AGM notice includes several other key resolutions:

• Adoption of Financial Statements: Approval of audited standalone financial statements for FY26.
• Director Re-appointment: Re-appointment of Ms. Dakshaben Rasiklal Thakkar, who retires by rotation.
• Auditor Appointments: Appointment of M/s AVKAS & Co. as Statutory Auditor and CS Arvind Sudra as Secretarial Auditor for five years, from FY27 to FY31.
• Regularization of Appointments: Regularization of Mukesh Parmar as Managing Director & CEO, Kuldipsinh Rathod as Executive Director & CFO, and Ankit Goel as Non-Executive Independent Director.

Financial Context and Audit Disclaimer

For the financial year ended March 31, 2026, Gravity India reported a significant turnaround. Turnover rose to ₹1,791.9 crore from ₹12.2 crore in the previous year. Net profit stood at ₹128.5 crore, compared to a net loss of ₹20.1 crore in FY25.

However, statutory auditors M/s AVKAS & Co. issued a disclaimer of opinion on the standalone financial results. The firm cited insufficient audit evidence due to missing supporting documents, reconciliations, and historical accounting records. Key observations included:

• Unfiled GST returns since December 2025.
• Outstanding TDS defaults and non-compliances.
• Missing basis and working for income tax provisions.
• Unresolved income tax demands from AY 2018.

The company had previously attempted a rights issue in April 2026 but did not proceed due to insufficient subscription. The authorized share capital was increased to ₹100 crore during January 2026.

gravity reported a net profit of ₹600.66 lakh for the fourth quarter ended June 30, 2026, a substantial increase from ₹6.60 lakh in the same period of the previous fiscal year. The company’s revenue from operations surged to ₹6,000.08 lakh, compared to ₹30.87 lakh in Q4FY25, driven primarily by higher purchases of stock-in-trade. This performance underscores a significant operational expansion for the Bhiwandi-based entity, which has seen its reserves grow to ₹1,191.72 lakh from ₹(693.97) lakh a year ago.

The Board of Directors approved the unaudited standalone financial results at a meeting held on August 10, 2026, at the company’s registered office in Bhiwandi. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, A V K A S & Co., Chartered Accountants. The filing was made pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

The company’s total revenue from operations stood at ₹6,009.60 lakh for the quarter, including other income of ₹9.52 lakh. Total expenses amounted to ₹5,204.41 lakh, with purchases of stock-in-trade constituting the largest component at ₹5,087.78 lakh. Employee benefit expenses were recorded at ₹3.88 lakh, while finance costs remained minimal at ₹0.03 lakh. Depreciation and amortization expenses totaled ₹4.05 lakh.

Profit before tax was ₹805.19 lakh. After accounting for current tax expenses of ₹202.64 lakh and deferred tax liabilities of ₹1.89 lakh, the net profit after tax reached ₹600.66 lakh. Earnings per share (basic and diluted) were ₹6.67, compared to ₹0.07 in the corresponding quarter of FY25.

What the Numbers Show

The most striking aspect of Gravity (India)’s results is the magnitude of growth in both revenue and profitability. The transition from a net profit of ₹6.60 lakh to ₹600.66 lakh represents a near 9,000% year-on-year increase. Similarly, revenue from operations expanded from ₹30.87 lakh to ₹6,000.08 lakh. This dramatic shift suggests a major scaling up of operations or a one-time significant transaction during the quarter, as evidenced by the ₹5,087.78 lakh spent on stock-in-trade purchases compared to nil in the previous year. The company’s reserves also turned positive, rising to ₹1,191.72 lakh from a deficit of ₹(693.97) lakh a year earlier, indicating improved financial health.

Regulatory Disclosures

The company confirmed that it is exempt from certain corporate governance provisions under Regulation 15(2) of the SEBI LODR Regulations, 2015, as its paid-up equity share capital does not exceed ₹10 crore and its net worth does not exceed ₹25 crore. Consequently, disclosures related to related party transactions on a consolidated basis under Regulation 23(9) are not applicable. The statutory auditors, A V K A S & Co., issued a limited review report stating that nothing came to their attention to suggest that the financial statements contained any material misstatement. The results were prepared in accordance with Ind AS 34 – Interim Financial Reporting.