Galaxy Cloud Kitchens Limited , a company listed on the BSE (Scrip Code: 506186), has announced a significant change in its shareholding structure. FDRT Consultancy Services Limited, a member of the promoter group, has increased its stake in the company through the conversion of Compulsorily Convertible Debentures (CCDs).

Shareholding Increase

FDRT Consultancy Services acquired 974,962 equity shares in Galaxy Cloud Kitchens through the conversion of CCDs. This strategic move has resulted in a substantial increase in FDRT's shareholding:

• Previous holding: 927,786 shares (1.96% of total share capital)
• New holding: 1,902,748 shares (3.82% of total share capital)

Impact on Galaxy Cloud Kitchens' Share Capital

Following the conversion of CCDs, Galaxy Cloud Kitchens' total equity share capital has expanded:

• Previous share capital: 47,297,674 shares
• New share capital: 49,777,674 shares

This increase in the number of outstanding shares reflects the dilutive effect of the CCD conversion.

Implications for Investors

The conversion of CCDs by a promoter group entity often signals confidence in the company's future prospects. For Galaxy Cloud Kitchens' shareholders, this development may have several implications:

1. Increased promoter stake: The higher shareholding by FDRT Consultancy Services could be viewed positively, as it aligns the promoter group's interests more closely with those of other shareholders.

2. Dilution effect: The increase in total share capital may have a slight dilutive effect on existing shareholders' ownership percentages.

3. Potential market reaction: Investors may want to monitor the stock's performance to gauge the market's response to this change in shareholding structure.

Company Background

Galaxy Cloud Kitchens Limited operates in the food service industry, likely focusing on the cloud kitchen segment. The company's shares are traded on the BSE Limited, providing liquidity for investors interested in the stock.

Annual General Meeting Announcement

Galaxy Cloud Kitchens Limited has announced its 43rd Annual General Meeting (AGM) to be held on Tuesday, September 30, at 02:00 PM (IST) through Video Conference (VC) / Other Audio Visual Means (OAVM). This information was disclosed in a recent regulatory filing, demonstrating the company's commitment to shareholder engagement and corporate governance.

Shareholders are encouraged to participate in the upcoming AGM to stay informed about the company's performance and future plans. The virtual format of the meeting ensures accessibility for all shareholders, regardless of their location.

Galaxy Cloud Kitchens Limited , a company specializing in food, beverages, and grocery products, has reported a significant turnaround in its financial performance for the quarter ended June 30, 2025. The company's unaudited financial results, approved by its Board of Directors, reveal a remarkable improvement in both revenue and profitability.

Financial Highlights

Galaxy Cloud Kitchens has shown a substantial increase in its revenue from operations, which rose to Rs 1,060.76 lakhs in Q1 FY2026, compared to Rs 139.13 lakhs in the same quarter of the previous year, marking a 662.4% year-on-year growth.

The company's total income for the quarter stood at Rs 1,060.83 lakhs, up from Rs 139.96 lakhs in Q1 FY2025, representing a 657.9% increase.

Profitability Improvement

In a notable turnaround, Galaxy Cloud Kitchens reported a net profit from continuing operations of Rs 86.52 lakhs for Q1 FY2026, compared to a loss of Rs 61.56 lakhs in the corresponding quarter of the previous year. However, the company's discontinued operations recorded a loss of Rs 42.21 lakhs.

Despite the losses from discontinued operations, the overall net profit for the quarter stood at Rs 44.31 lakhs, a significant improvement from the net loss of Rs 231.35 lakhs reported in Q1 FY2025.

Business Restructuring

The company has undergone significant restructuring, having shut down multiple commissary units between 2022 and 2024. These closures include:

• A unit in Bengaluru, Karnataka (closed October 12, 2022)
• A unit in Mumbai, Maharashtra (closed January 31, 2024)
• A unit in Gurugram, Haryana (closed September 30, 2024)

Galaxy Cloud Kitchens has made necessary accounting provisions for these closed operations in accordance with applicable accounting standards.

Going Concern and Future Outlook

Despite the positive quarterly results, the company's financial position remains challenging. The entire net worth of Galaxy Cloud Kitchens has been eroded due to losses incurred in previous years, with current liabilities exceeding current assets. This situation raises material uncertainty about the company's ability to continue as a going concern.

However, management remains optimistic about the future. The company is committed to improving operational efficiency and has initiated various measures to boost sales, reduce costs, and diversify its business activities. These initiatives include expanding into supermarket store operations, which management believes has the potential to generate positive cash flows.

Other Developments

The Board of Directors has noted that the Nomination and Remuneration Committee has advised management to proceed with formulating an Employee Stock Option Plan (ESOP). Once drafted, the ESOP will be subject to review and approval by the committee, board, and shareholders, in compliance with applicable laws.

Galaxy Cloud Kitchens Limited continues to operate in a single business segment: dealing and trading in food, beverages, and grocery products. The company's management expresses confidence that its ongoing initiatives will lead to a positive net worth in the near future and generate sustainable cash flows to meet all obligations.

As the company navigates through its restructuring phase and works towards financial stability, investors and stakeholders will be keenly watching its performance in the coming quarters.