Galaxy Agrico Exports Limited , a company listed on the BSE, has reported its unaudited financial results for the quarter and half-year ended September 30, 2025, revealing a significant downturn in performance and raising concerns about its asset management practices.

Financial Performance

The company's financial results paint a challenging picture:

Galaxy Agrico Exports reported a net loss of ₹22.30 lakhs for the quarter ended September 30, 2025, compared to a profit of ₹9.47 lakhs in the corresponding quarter of the previous year. For the half-year, the company's losses deepened to ₹32.79 lakhs, in contrast to a profit of ₹14.21 lakhs in the same period last year.

The company's revenue from operations also saw a slight decline, dropping from ₹100.12 lakhs in Q2 FY2025 to ₹98.11 lakhs in Q2 FY2026.

Auditor's Concerns

In their limited review report, the company's auditors, H.B. Kalaria & Associates, highlighted significant concerns:

1. Fixed Asset Management: The company has not conducted an inspection of its fixed assets and has not maintained a register of fixed assets during the period under review.

2. Inventory Management: The company has not carried out an inspection of its inventories during the review period.

The auditors stated that due to these issues, they were unable to obtain sufficient evidence regarding the existence of fixed assets and inventories. Consequently, they could not provide a basis for a review opinion on these aspects of the financial statements.

Management Response

The financial results were approved by the Board of Directors in their meeting held on November 11, 2025. However, the company's management has not provided any specific comments addressing the auditors' concerns in the available information.

Investor Implications

These results and the auditors' concerns raise several red flags for investors:

1. The shift from profit to loss indicates a significant deterioration in the company's financial performance.
2. The lack of proper fixed asset and inventory management practices could potentially lead to misstatement of the company's assets and overall financial position.
3. The inability of auditors to verify key assets may impact the reliability of the financial statements.

Investors and stakeholders may want to closely monitor the company's response to these issues and any steps taken to address the auditors' concerns in the coming quarters.

Galaxy Agrico Exports has announced a significant change in its upcoming board meeting, rescheduling it to August 11, 2025. The company's board of directors is set to convene to discuss and potentially approve a major business transaction, among other important matters.

Potential Business Sale

The primary focus of the meeting will be to consider the sale and transfer of Galaxy Agrico's agricultural equipment and bearings manufacturing and trading business. The proposed transaction would involve selling the business as a going concern on a slump sale basis to Forgex Rings Private Limited, a non-related entity.

According to the company's disclosure, this potential sale would include:

• The entire business undertaking of manufacturing and trading activity of Agricultural Equipments and Bearings (Forged Rings)
• Balance of plant
• Respective assets and liabilities
• Concerned licenses, consents, and approvals
• Employees and contracts

It's important to note that this transaction, if approved by the board, would still require approval from the company's members and potentially other necessary approvals.

Additional Agenda Items

Besides the potential business sale, the board meeting will address several other crucial matters:

1. Review and approval of the Annual Report for the financial year 2024-25
2. Fixing the date for the Annual General Meeting (AGM) for 2024-25
3. Approval of the appointment of Ramesh Chandra Bagdi & Associates as the company's secretarial auditor
4. Review and approval of unaudited financial results for the quarter ended June 30, 2025

Transparency and Compliance

In line with regulatory requirements, Galaxy Agrico Export Ltd has stated that it will provide an update on the meeting's outcome immediately after its conclusion. This commitment to transparency aligns with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015.

Investors and stakeholders will be keenly watching for the results of this crucial board meeting, particularly regarding the potential business sale, which could significantly impact the company's future direction and operations.