GTL Limited Returns to Profitability in FY26 with Net Profit of ₹58,254.74 Lakhs
GTL Limited reported a net profit of ₹58,254.74 lakhs for FY26, reversing the prior year net loss of ₹838.18 lakhs, driven by exceptional items of ₹61,044.45 lakhs from the OTS with lenders. Revenue from operations declined to ₹22,437.20 lakhs from ₹25,387.94 lakhs, while auditors issued a modified opinion noting unrecognized interest of ₹21,296.46 lakhs on unsettled borrowings. The audited results were published in 'The Free Press Journal' and 'Navshakti' on May 15, 2026, pursuant to Regulation 47 of SEBI LODR Regulations.
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GTL Limited reported a net profit of ₹58,254.74 lakhs for the financial year ended March 31, 2026, reversing the net loss of ₹838.18 lakhs recorded in the previous year. This turnaround was primarily driven by exceptional items amounting to ₹61,044.45 lakhs, which included the accounting impact from the One Time Settlement (OTS) with lenders. The Board of Directors approved the audited financial results at its meeting held on May 14, 2026, and the results were subsequently published in newspapers 'The Free Press Journal' and 'Navshakti' on May 15, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Performance Overview
Revenue from operations for FY26 stood at ₹22,437.20 lakhs, a decrease from ₹25,387.94 lakhs in FY25. Total expenses increased to ₹28,994.70 lakhs from ₹23,480.84 lakhs in the prior year, with exchange loss contributing significantly at ₹11,104.51 lakhs compared to ₹3,236.74 lakhs in FY25. The company reported a basic and diluted EPS of ₹37.03 for FY26 (after exceptional items), compared to a negative EPS of ₹0.54 in the previous year. The following table summarizes the key financial metrics for the quarter and year ended March 31, 2026:
| Metric (₹ in Lakhs) | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) | FY26 (Audited) | FY25 (Audited) |
|---|---|---|---|---|---|
| Revenue from Operations | 5,824.78 | 5,499.84 | 6,989.97 | 22,437.20 | 25,387.94 |
| Total Income | 5,917.35 | 5,521.93 | 7,062.60 | 22,669.99 | 26,022.40 |
| Total Expenses | 9,496.22 | 5,784.85 | 4,611.77 | 28,994.70 | 23,480.84 |
| Profit/(Loss) before Exceptional Items & Tax | (3,578.87) | (262.92) | 2,450.83 | (6,324.71) | 2,541.56 |
| Exceptional Items | 60,948.90 | NIL | 155.26 | 61,044.45 | 155.26 |
| Net Profit/(Loss) for the Period | 60,905.03 | (262.92) | 1,121.09 | 58,254.74 | (838.18) |
| Total Comprehensive Income | 60,938.53 | (287.71) | 1,128.45 | 58,326.71 | (796.21) |
| Basic EPS (After Exceptional Items) (₹) | 38.72 | (0.17) | 0.71 | 37.03 | (0.54) |
| Diluted EPS (After Exceptional Items) (₹) | 38.72 | (0.17) | 0.71 | 37.03 | (0.54) |
Exceptional Items and OTS Impact
Exceptional items for the year totaled ₹61,044.45 lakhs, comprising an OTS accounting impact of ₹73,991.19 lakhs and non-recurring revenue of ₹4,953.26 lakhs on account of revision in rates. Additionally, a claim of ₹17,900.00 lakhs arose from the invocation of pledges on shares, which was previously considered a contingent liability. The company has settled the dues of eleven secured original lenders and is awaiting OTS sanctions from the remaining three lenders. Consequent to the dismissal of the suit relating to one of the arbitration matters, the company is continuing its efforts to arrive at a settlement in respect of the Upside Sharing Agreement with the lenders.
Balance Sheet Highlights
The following table presents the key balance sheet figures as at March 31, 2026, compared to the previous year:
| Particulars (₹ in Lakhs) | March 31, 2026 | March 31, 2025 |
|---|---|---|
| Total Non-Current Assets | 1,811.84 | 1,818.69 |
| Total Current Assets | 11,424.51 | 8,706.99 |
| Total Assets | 13,236.35 | 10,525.68 |
| Share Capital | 15,729.68 | 15,729.68 |
| Other Equity | (5,60,334.94) | (6,18,661.65) |
| Total Equity | (5,44,605.26) | (6,02,931.97) |
| Total Non-Current Liabilities | 33,405.45 | 33,863.10 |
| Current Borrowings | 4,55,339.86 | 5,33,307.49 |
| Total Current Liabilities | 5,24,436.16 | 5,79,594.55 |
| Total Liabilities | 5,57,841.61 | 6,13,457.65 |
Cash Flow Summary
GTL Limited generated net cash flows from operating activities of ₹16,613.57 lakhs in FY26, compared to ₹19,812.38 lakhs in FY25. Net cash used in investing activities stood at ₹246.08 lakhs, while net cash used in financing activities was ₹16,104.21 lakhs, primarily on account of repayment of long-term borrowings of ₹15,098.60 lakhs. Cash and cash equivalents at the end of the year stood at ₹305.32 lakhs, up from ₹42.03 lakhs at the beginning of the year.
Auditor's Report and Going Concern
Auditors M/s. GDA & Associates issued a modified opinion, noting that the company has neither paid nor provided interest on borrowings from unsettled lenders. Had this interest been recognized, the finance cost would have increased by ₹21,296.46 lakhs, reducing the reported profit after Other Comprehensive Income to ₹37,030.25 lakhs and the EPS to ₹23.49. The audit qualification has been raised for the ninth time. The auditors also highlighted a material uncertainty regarding the company's ability to continue as a going concern due to eroded net worth and current liabilities exceeding current assets. However, management has prepared the financial statements on a going concern basis, citing the OTS progress and operational revival plans. Additionally, balance confirmations with respect to bank loans including interest accrued, bank guarantees, bank current accounts, and fixed deposits aggregating to ₹1,38,043.56 lakhs have not been received as at March 31, 2026.
Historical Stock Returns for GTL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.10% | -8.69% | -4.61% | -18.17% | -17.05% | +2.11% |
Will GTL Limited be able to secure OTS sanctions from the remaining three lenders, and what timeline is management targeting for completing the full debt settlement process?
Given that auditors have raised going concern doubts for the ninth consecutive time and total equity remains deeply negative at ₹5,44,605 lakhs, what concrete steps is GTL's management planning to restore positive net worth and achieve financial stability?
How will the unrecognized interest of ₹21,296.46 lakhs on borrowings from unsettled lenders impact GTL's financial position if lenders demand full payment, and could this derail the ongoing OTS negotiations?
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