Galaxy Agrico Exports Limited has delivered exceptional financial results for the third quarter ended December 31, 2025, reporting a net profit of ₹531.45 lakhs compared to a loss of ₹8.47 lakhs in the corresponding quarter of the previous year. The remarkable turnaround was primarily driven by an exceptional item worth ₹570.78 lakhs related to a strategic business transaction completed during the quarter.

Financial Performance Overview

The company's quarterly financial performance showed mixed operational trends alongside the exceptional gain:

The company's operational performance before exceptional items showed challenges, with expenses rising significantly to ₹114.43 lakhs from ₹80.42 lakhs in the previous year. Employee benefit expenses decreased to ₹19.06 lakhs from ₹31.07 lakhs, while other expenses increased substantially to ₹62.92 lakhs from ₹52.92 lakhs.

Strategic Business Divestiture

The exceptional financial performance stems from a major corporate restructuring initiative. On November 29, 2025, Galaxy Agrico Exports completed a slump sale of its existing business to Forgex Rings Pvt. Ltd. on a going concern basis for a total consideration of ₹9.25 crores. The company has indicated its intention to utilize these funds for establishing new business opportunities in the near future, maintaining its operations on a going concern basis.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company demonstrated strong overall performance:

Board Meeting Outcome and Leadership Changes

The Board of Directors meeting held on January 7, 2026, considered and approved the unaudited financial results for the quarter ended December 31, 2025. The meeting, which commenced at 2:30 PM and concluded at 3:30 PM, also addressed significant changes in board composition.

These changes are subject to shareholder approval at the ensuing general meeting and represent a significant restructuring of the company's executive leadership.

Earnings Per Share Performance

The company's earnings per share metrics reflected the exceptional performance, with basic and diluted EPS reaching ₹19.46 for Q3 FY26 compared to a loss of ₹0.31 per share in Q3 FY25. For the nine-month period, EPS improved dramatically to ₹18.26 from ₹0.21 in the corresponding period of the previous year.

Regulatory Compliance and Audit Review

The unaudited financial results were reviewed by the company's Audit Committee and approved by the Board of Directors. The statutory auditors, HB Kalaria & Associates, conducted a limited review of the results in accordance with Standard on Review Engagements (SRE) 2410. The auditors specifically highlighted the impact of the slump sale transaction in their review report, emphasizing its significance to the current reporting period's financial performance. The results were prepared in accordance with Indian Accounting Standards 34 "Interim Financial Reporting" prescribed under section 133 of The Companies Act, 2013.

Galaxy Agrico Exports has taken a significant step towards restructuring its business operations. The company's Board of Directors has approved a draft slump sale agreement to divest its manufacturing and trading business of agricultural equipment and bearings to Forgex Rings Private Limited.

Key Details of the Transaction

Board Resolution for Property Purchase

In the latest development, the Board of Directors in their meeting held on December 15, 2025, passed a resolution authorizing the company to proceed with property purchase for business expansion using proceeds from the slump sale. The Board has taken note that upon successful completion of the slump sale, the company will receive consideration amount of ₹9.25 crore.

Authorization and Compliance

The Board has authorized Mr. Abhay Vasantrao Galgate (DIN 09596308), Director of the company, to negotiate, finalize, sign, execute and deliver all documents relating to the slump sale transaction, receipt of consideration, and property purchase. The authorization extends to execution of sale deed, MOU, registration documents and related property papers.

Additionally, Mr. Manoj H Shah, Whole-time Director (DIN 02173383), has been authorized to certify copies of the resolution and submit the same to any authority.

Background and Rationale

Galaxy Agrico Exports' decision to sell its current business stems from profitability concerns. The company stated that its present business is not very profitable, and continuing with the same line of business is not considered viable for the company's prospects. The sale proceeds are intended to be utilized for developing new business lines, potentially opening up more profitable avenues for the company.

Buyer Information

Forgex Rings Private Limited, the buyer, is a non-related entity to Galaxy Agrico Exports. It was incorporated in 2024 and has its registered office in Rajkot, Gujarat. The company's corporate identity number is U28219GJ2024PTC152330.

Regulatory Compliance

The Board has resolved that upon completion of the slump sale transaction and receipt of funds, the company shall inform BSE Limited and make necessary disclosures under applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and any other applicable regulation. The sale was previously approved by shareholders at the Annual General Meeting held on September 29, 2025.