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 Ltd. has taken a significant step towards enhancing transparency and investor protection for its forthcoming Rights Issue. The company's Board of Directors, in a meeting held on December 3, 2025, approved several key measures to ensure proper oversight and utilization of the issue proceeds.

Appointment of Monitoring Agency

Despite the proposed Rights Issue size being below ₹50 crores, Galaxy Agrico Exports has decided to appoint a SEBI-registered Credit Rating Agency as the Monitoring Agency. This agency will be responsible for overseeing the utilization of proceeds from the Rights Issue, demonstrating the company's commitment to transparency.

Key Decisions

Utilization of Proceeds

The Board has emphasized that the entire net proceeds from the Rights Issue will be utilized solely for the purposes stated under the Objects of the Issue. To further reinforce this commitment, the Board has authorized the Chief Financial Officer (CFO) and Company Secretary to issue certificates confirming the proper utilization of funds.

Certification Process

The CFO and Company Secretary have been empowered to submit certificates to BSE Ltd., confirming that the Rights Issue proceeds will be strictly used in line with the objectives stated in the Draft Letter of Offer. This measure adds an additional layer of assurance for investors regarding the appropriate use of funds.

Implications for Investors

These decisions by Galaxy Agrico Exports reflect a proactive approach to corporate governance and investor protection. By voluntarily appointing a Monitoring Agency and implementing a certification process, the company is demonstrating its commitment to transparency, which could potentially boost investor confidence in the upcoming Rights Issue.

Investors considering participation in the Rights Issue may view these measures positively, as they provide additional safeguards and oversight for the utilization of issue proceeds.

As the Rights Issue progresses, shareholders and potential investors should stay tuned for further updates, including the release of the Draft Letter of Offer, which will contain detailed information about the issue objectives and terms.