Galaxy Bearings Reports Q1 FY2026 Results Amid Ongoing US Sanctions Challenge
Galaxy Bearings Limited released unaudited Q1 FY2026 results, showing resilience despite US Treasury sanctions imposed in October 2024. The company reported revenue of Rs. 1,688.54 lakhs, net profit of Rs. 259.21 lakhs, and EPS of Rs. 8.15. Galaxy Bearings faced challenges accessing USD and EURO markets and potential disruptions to international operations due to sanctions. The company has engaged US legal counsel to request removal from the Specially Designated Nationals list, asserting unawareness of its products being associated with sanctioned entities.
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Galaxy Bearings Limited has released its unaudited standalone financial results for the first quarter of fiscal year 2026, ending June 30, 2025. The company continues to navigate challenges stemming from US Treasury sanctions imposed in October 2024, while showing resilience in its financial performance.
Financial Highlights
| Metric | Q1 FY2026 |
|---|---|
| Revenue from operations | Rs. 1,688.54 lakhs |
| Net profit | Rs. 259.21 lakhs |
| Earnings per share (EPS) | Rs. 8.15 |
Sanctions Impact and Company Response
Galaxy Bearings has been grappling with the effects of US Treasury sanctions since October 30, 2024, when the company was placed on the Specially Designated Nationals (SDN) list. The sanctions were imposed for allegedly providing high-priority dual-use equipment to Russia, specifically goods on the "Common High Priority Items List" or "CHPIL."
As a result of these sanctions, Galaxy Bearings faced significant challenges:
- Inability to access USD and EURO through official markets from October 2024 to March 2025
- Potential disruptions to international business operations and financial transactions
The company has taken proactive steps to address the situation:
- Immediate action upon learning of the sanctions, including notification to the stock exchange
- Engagement of US-based legal counsel to submit an application to the Office of Foreign Assets Control (OFAC), U.S. Department of the Treasury
- Request for expedited removal from the SDN list, asserting that the company was "totally unaware of any Roller Bearings being used or associated with sanctioned entities or individuals"
Business Operations
Despite the ongoing challenges, Galaxy Bearings continues to operate primarily in the ball and roller bearings business. The company has no subsidiaries or associates, focusing on its core operations.
Looking Ahead
As Galaxy Bearings awaits a response from OFAC regarding its removal from the SDN list, the company continues to navigate the complexities of operating under sanctions. The Q1 FY2026 results suggest that the company is maintaining its operations despite these challenges, but the full impact of the sanctions on long-term business prospects remains to be seen.
Investors and stakeholders will likely be watching closely for any updates on the sanctions situation and its impact on Galaxy Bearings' future performance and international operations.
Note: This article is based on the unaudited financial results and limited review report for the quarter ended June 30, 2025, as approved by the Board of Directors of Galaxy Bearings Limited.
Historical Stock Returns for Galaxy Bearings
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.09% | -0.94% | -5.91% | -25.12% | -33.47% | +323.85% |
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