Gujarat Craft Industries Limited reported a return to profitability in the first quarter of FY27, posting a net profit of ₹5.70 lakh for the quarter ended June 30, 2026. This marks a significant improvement from the ₹3.67 lakh net loss recorded in the previous quarter (Q4FY26). The company’s Board of Directors approved the unaudited financial results on August 12, 2026.

Guarajat Craft Industries saw its revenue from operations rise to ₹4,388.53 lakh, up from ₹4,242.18 lakh in the prior quarter. However, compared to the same period last year, revenue contracted by 7.7%, down from ₹4,754.27 lakh in Q1FY26.

Financial Performance

The company’s total income stood at ₹4,448.97 lakh, driven by a substantial increase in other income, which jumped to ₹60.44 lakh from ₹10.84 lakh in the previous quarter and ₹6.19 lakh a year ago. Total expenses were recorded at ₹4,441.32 lakh.

Earnings per share (basic and diluted) stood at ₹0.12, compared to a loss of ₹0.08 per share in the previous quarter and earnings of ₹0.87 per share in Q1FY26.

What the Numbers Show

The turnaround in profitability was largely supported by a surge in other income rather than core operational margins. Other income contributed approximately 87% of the pre-tax profit for the quarter (₹60.44 lakh against a PBT of ₹7.65 lakh), indicating that the bottom-line improvement is not primarily driven by operational efficiency or revenue growth. Core operating expenses remained relatively stable, with finance costs at ₹155.89 lakh and employee benefits at ₹217.42 lakh.

Auditor Review

Kantilal Patel & Co., the independent auditors, reviewed the interim financial information pursuant to Standard on Review Engagements (SRE) 2410. The audit firm stated that nothing came to their attention to suggest the statement contains material misstatement or fails to comply with Regulation 33 of the SEBI (LODR) Regulations, 2015. The company confirmed it has no outstanding defaults on loans or debt securities.

Gujarat Craft Industries has appointed Mudesharsha Fakir as Chief Financial Officer (CFO) effective July 29, 2026, and scheduled its 42nd Annual General Meeting (AGM) for September 23, 2026. The Board of Directors also approved the appointment of M/s. Kashyap R. Mehta & Partners as Secretarial Auditors for a five-year term, subject to shareholder approval at the upcoming AGM.

The Board meeting held on July 29, 2026, determined that the AGM will be conducted via Video Conferencing or Other Audio Visual Means in compliance with the Companies Act, 2013, MCA Circular No. 03/2025 dated September 22, 2025, and General Circular No. 20/2020 dated May 5, 2020. Pursuant to Regulation 42 of the SEBI Listing Regulations, the record date for determining shareholders entitled to receive the final dividend for FY2026, if declared, is fixed for September 16, 2026. Any dividend payment will be made on or after September 23, 2026, within the statutory time limit.

Key Managerial Personnel Appointment

The Board appointed Mr. Mudesharsha Fakir as CFO with effect from July 29, 2026, based on the recommendation of the Nomination and Remuneration Committee. This appointment fulfills the requirements of Section 203 of the Companies Act, 2013. Mr. Fakir, who has been associated with the company since June 2016, currently serves as Accounts Manager. He holds a Bachelor of Commerce degree from Gujarat University and has completed the Intermediate level of the Chartered Accountancy course conducted by the Institute of Chartered Accountants of India. He is not related to any directors of the company.

Secretarial Auditor Appointment

The Board approved the appointment of M/s. Kashyap R. Mehta & Partners, Practising Company Secretaries (FRN: P2025GJ106000), as Secretarial Auditors for a term of five consecutive financial years from FY2027 to FY2031. This appointment is based on the recommendation of the Audit Committee and is subject to approval by members at the ensuing 42nd AGM, pursuant to Section 204 of the Companies Act, 2013 and Regulation 24A of SEBI (LODR) Regulations, 2015.

E-Voting Details

Shareholders may cast their votes via remote e-voting on all resolutions set forth in the notice of the 42nd AGM. The details are as follows:

The company disclosed these changes under Regulation 30 of the SEBI (LODR) Regulations, 2015.