Gemstone Investments Limited, a Mumbai-based financial services company, has announced significant corporate decisions that signal a major expansion and restructuring of its operations. The company's board of directors approved several key measures during a meeting held on September 4, 2025, at its registered office.

Capital Expansion

In a move that substantially increases the company's financial capacity, Gemstone Investments has approved an increase in its authorized share capital from Rs. 10.00 crore to Rs. 48.00 crore. This expansion involves creating an additional 38 crore equity shares with a face value of Re. 1 each.

Issuance of Convertible Warrants

The board has also given the green light to issue 39.36 crore convertible warrants at Rs. 2.50 each, which includes a premium of Rs. 1.50 per warrant. These warrants will be issued on a preferential basis to 44 non-promoter investors. The warrants can be converted into an equal number of equity shares within 18 months from the date of allotment.

This move is expected to bring in fresh capital of Rs. 984.00 crore, subject to shareholder approval. The minimum upfront payment required is 25% of the warrant price, with the remaining 75% due at the time of conversion.

Board Appointments and Re-appointments

The board has recommended several changes to its directorship:

1. Mr. Santosh Kumar Dwivedi is proposed for re-appointment as a director, subject to shareholder approval.
2. Mr. Rajesh Babulal Maiyani and Mr. Falgun Shah are recommended for re-appointment as Independent Directors for a second term of five years each.

Other Key Decisions

1. M/s. NKM & Associate has been appointed as the secretarial auditor for a period of five years, from FY 2025-26 to FY 2029-30.
2. The 31st Annual General Meeting (AGM) is scheduled for September 30, 2025, at Event Banquet Hall, Mumbai.
3. E-voting for the AGM will be available from September 27 to September 29, 2025.

These decisions are subject to shareholder approval at the upcoming AGM. The capital expansion and issuance of warrants, if approved, could significantly alter Gemstone Investments' financial structure and potentially its market position in the coming years.

Gemstone Investments Limited, a Mumbai-based financial services company, has released its unaudited standalone financial results for the first quarter of the fiscal year 2026, ending June 30, 2025. The company reported a net profit of ₹12.30 lakh, marking a significant decrease from the ₹32.97 lakh reported in the same quarter of the previous year.

Financial Performance Highlights

The company's financial performance for Q1 FY2026 shows a mixed picture:

Key Observations

Revenue Decline

Gemstone Investments experienced a 34.87% year-over-year decrease in revenue from operations, dropping from ₹55.11 lakh in Q1 FY2025 to ₹35.89 lakh in Q1 FY2026.

Increased Expenses

Total expenses rose significantly by 60.76%, from ₹12.41 lakh to ₹19.95 lakh. This increase was primarily driven by higher employee benefit expenses and other expenses.

Profitability Impact

The combination of lower revenue and higher expenses resulted in a 62.69% decline in net profit, from ₹32.97 lakh to ₹12.30 lakh.

Earnings Per Share

Basic earnings per share (EPS) decreased from ₹0.04 to ₹0.02, reflecting the reduced profitability.

Management Commentary

The financial results were approved by the Board of Directors at a meeting held on August 12, 2025. Sudhakar Gandhi, Managing Director of Gemstone Investments Limited, signed off on the results. The company maintained its paid-up equity share capital at ₹747.50 lakh.

Auditor's Review

M/s. Rishi Sekhri and Associates, Chartered Accountants, conducted a limited review of the financial results for the quarter ended June 30, 2025, in compliance with SEBI regulations.

Conclusion

Gemstone Investments has faced challenges in the first quarter of FY2026, with decreased revenue and profitability. The financial results have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013, ensuring compliance with regulatory requirements and accounting practices.