Shri Gang Industries and Allied Products Limited has made a significant move in its equity structure by allotting 7,50,000 sweat equity shares to its Chief Operating Officer, Varun Gupta. This decision, approved by the company's Nomination and Remuneration Committee, marks a notable change in the company's shareholding pattern.

Key Details of the Allotment

Impact on Shareholding

The allotment of sweat equity shares has resulted in a significant change in Varun Gupta's stake in the company:

• Pre-allotment shareholding: Nil
• Post-allotment shareholding: 7,50,000 shares (3.38% of the fully diluted paid-up equity capital)

It's worth noting that the company had previously allotted 7,50,000 fully convertible warrants to Mr. Gupta, which were not considered in calculating the pre-allotment shareholding.

Regulatory Compliance

The allotment was made in accordance with Regulation 41(c) of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. Shri Gang Industries has duly informed the BSE Limited about this development, adhering to the disclosure requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implications

This allotment of sweat equity shares to the COO, who belongs to the promoter group, may be seen as a move to align the interests of key management personnel with those of the company and its shareholders. It potentially incentivizes long-term commitment and performance from a crucial member of the leadership team.

Investors and market watchers may want to keep an eye on how this change in shareholding structure might influence the company's strategic decisions and performance in the coming quarters.

Shri Gang Industries and Allied Products Limited has released its unaudited financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance with strong profitability despite a decline in revenue.

Financial Highlights

Key Takeaways

1. Revenue Decline: The company experienced a year-on-year decrease in revenue for both the quarter and half-year periods. Q2 FY2026 revenue stood at ₹87.78 crores, down from ₹105.61 crores in the same quarter last year.

2. Profitability: Despite the revenue decline, Shri Gang Industries reported a profit after tax of ₹17.00 crores for Q2 and ₹59.57 crores for H1 FY2026. The company's ability to maintain profitability in the face of reduced revenue suggests effective cost management or improved operational efficiency.

3. Segment Performance: The company operates in two business segments:

   • Liquor Operations: Contributed ₹87.56 crores to quarterly revenue
   • Edible Oils Operations: Contributed ₹0.22 crores to quarterly revenue

   The liquor segment clearly dominates the company's revenue stream, accounting for over 99% of the quarterly revenue.

4. Earnings Per Share: The basic earnings per share for Q2 FY2026 was ₹0.94, while for H1 FY2026, it stood at ₹1.48, indicating positive returns for shareholders.

Corporate Actions

In addition to the financial results, the company made two significant announcements:

1. Sweat Equity Shares: The Nomination and Remuneration Committee approved the allotment of 7,50,000 sweat equity shares to Mr. Varun Gupta, Chief Operating Officer and a member of the promoter group. These shares were issued at ₹99 per share, slightly above the fair market value of ₹97.86 per share.

2. Board Meeting Outcome: The Board of Directors approved the unaudited financial results in a meeting held on November 13, 2025, which lasted from 3:00 PM to 3:45 PM.

Conclusion

Shri Gang Industries and Allied Products Limited's Q2 FY2026 results present a nuanced picture. While the company faced challenges in maintaining revenue growth, it demonstrated resilience in profitability. The significant contribution from the liquor segment underscores its importance to the company's overall performance. The issuance of sweat equity shares to a key executive may be seen as a move to align management interests with company performance.

Investors and analysts will likely be watching closely to see if the company can reverse the revenue decline in upcoming quarters while maintaining its profitability levels.