G.S. Auto International Board Approves Capital Expansion and Investment Limit Increase

G.S. Auto International Limited , a leading auto component manufacturer, has announced significant corporate actions aimed at enhancing its financial flexibility and growth potential. The company's Board of Directors has approved several key measures, subject to shareholder approval, that could reshape its capital structure and investment capabilities.

Key Corporate Actions Approved

Increase in Authorized Share Capital

Current: Rs. 13.00 crores
Proposed: Rs. 25.00 crores
Composition: 5,00,00,000 Equity Shares of Rs. 5 each

Revision of Investment Limits

Current limit: Rs. 10.00 crores
Proposed limit: Rs. 25.00 crores
Applicable to: Investments, Loans, Guarantees, and Securities

Adoption of New Memorandum of Association (MOA)

In line with the Companies Act, 2013

Shareholder Approval Process

To be sought through an Extra-Ordinary General Meeting

Financial Context

To provide context for these corporate actions, let's examine some key financial metrics of G.S. Auto International:

Financial Metric	FY 2025 (in Rs. crores)	YoY Change
Total Assets	97.30	-1.02%
Current Assets	50.60	+5.20%
Fixed Assets	36.50	-6.89%
Total Equity	23.10	+5.96%
Current Liabilities	52.90	+0.57%

The proposed increase in authorized share capital from Rs. 13.00 crores to Rs. 25.00 crores represents a significant 92.3% expansion. This move could potentially provide the company with greater flexibility for future equity financing or stock-based transactions.

Similarly, the revision of investment limits from Rs. 10.00 crores to Rs. 25.00 crores, a 150% increase, suggests that the company may be planning for more aggressive investment strategies or expansion plans.

These corporate actions come at a time when the company's balance sheet shows mixed trends. While total assets have slightly decreased by 1.02% year-over-year, current assets have grown by 5.20%, indicating improved liquidity. The company's equity position has also strengthened, showing a 5.96% increase.

The adoption of a new Memorandum of Association in line with the Companies Act, 2013, reflects the company's commitment to maintaining up-to-date corporate governance practices.

It's important to note that these proposed changes are subject to shareholder approval at the upcoming Extra-Ordinary General Meeting. The outcome of this meeting will be crucial in determining the company's future financial structure and investment capabilities.

Investors and stakeholders should closely monitor these developments, as they could significantly impact the company's growth trajectory and financial flexibility in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+5.60%	+7.50%	+0.39%	-9.09%	-17.84%	+730.85%

GS Auto International , a prominent player in the auto components sector, has reported a significant increase in net profit for the quarter ended September 30, 2025, despite a decline in revenue. The company's financial results, approved by its Board of Directors on November 12, 2025, reveal a mixed performance with improved profitability but decreased top-line figures.

Financial Highlights

Particulars (in Rs. lakhs)	Q2 FY2026	Q1 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Revenue from Operations	3,117.89	3,763.17	3,321.16	6,881.06	7,145.11
Net Profit	66.63	60.87	41.78	127.50	85.40
EPS (Basic) in Rs.	0.45	0.42	0.29	0.88	0.59

Quarterly Performance

GS Auto International reported a net profit of Rs 66.63 lakhs for the quarter ended September 30, 2025, marking a substantial 45.8% increase from Rs 41.78 lakhs in the corresponding quarter of the previous year. This improvement in bottom-line performance comes despite a 6.1% year-on-year decline in revenue from operations, which stood at Rs 3,117.89 lakhs compared to Rs 3,321.16 lakhs in Q2 FY2025.

Half-Yearly Results

For the half-year period ended September 30, 2025, the company's net profit showed a robust growth of 49.3%, reaching Rs 127.50 lakhs compared to Rs 85.40 lakhs in the corresponding period of the previous year. However, the revenue from operations for H1 FY2026 declined by 3.7% to Rs 6,881.06 lakhs from Rs 7,145.11 lakhs in H1 FY2025.

Operational Efficiency

The significant improvement in profitability despite lower revenues suggests that GS Auto International may have enhanced its operational efficiency. The company might have implemented cost-cutting measures or improved its product mix to achieve higher margins.

Balance Sheet Position

As of September 30, 2025, GS Auto International's total assets stood at Rs 9,409.18 lakhs, showing a slight decrease from Rs 9,732.31 lakhs as of March 31, 2025. The company's equity share capital remained unchanged at Rs 725.73 lakhs, while other equity increased to Rs 1,708.21 lakhs from Rs 1,580.71 lakhs over the same period.

Market Segment

GS Auto International Limited continues to operate in the "Auto Components" segment, as stated in the company's notes to the financial results.

Compliance and Disclosure

The company has informed that it is not required to submit the "Disclosure of Related Party Transactions" as per Regulation 23(9) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This exemption is due to the company's paid-up equity share capital and net worth not exceeding the specified thresholds for the previous financial years.

The financial results have undergone a limited review by the statutory auditors, and the audit committee has reviewed them before the Board's approval.

As GS Auto International navigates through challenging market conditions, the company's ability to improve profitability while facing revenue pressures will be crucial for its future performance and shareholder value creation.