Galaxy Bearings Limited , a manufacturer of bearings, has reported its financial results for the quarter ended September 30, 2025, revealing significant challenges amid ongoing US sanctions. The company also announced key corporate actions, including the appointment of a new Company Secretary.

Financial Performance

Galaxy Bearings faced a challenging quarter, reporting a net loss and decreased revenue:

The company's performance was significantly impacted by its inclusion on the US Treasury's sanctions list in October 2024, which alleged the provision of dual-use equipment to Russia.

Sanctions Impact and Legal Expenses

The sanctions have severely restricted Galaxy Bearings' access to USD and EURO through official markets, complicating its international operations. In response, the company has incurred substantial legal expenses:

• Professional fees for legal counsel: ₹25.59 crores
• Purpose: Seeking removal from the Specially Designated Nationals list

These expenses highlight the company's efforts to address the sanctions and potentially regain access to key international markets.

Corporate Actions

Despite the challenges, Galaxy Bearings has taken several important corporate actions:

1. Financial Results Approval: The board approved the unaudited financial results for Q2 and H1 2025 on October 27, 2025.

2. Annual General Meeting: The 35th AGM is scheduled for November 25, 2025, to be held via video conferencing.

3. New Appointment: Mrs. Bhumikaben Mukeshbhai Teli has been appointed as Company Secretary and Compliance Officer, effective October 27, 2025.

New Company Secretary Profile

Mrs. Bhumikaben Mukeshbhai Teli brings a strong academic and professional background to her new role:

• Qualifications: Associate Member of the Institute of Company Secretaries of India
• Education: Bachelor's and Master's degrees in Commerce, Law Graduate
• Expertise: Corporate governance, regulatory compliance, and legal frameworks
• Skills: Strategic thinking, attention to detail, and proactive approach to aligning corporate secretarial functions with organizational goals

Her appointment comes at a crucial time as the company navigates complex regulatory challenges.

Looking Ahead

Galaxy Bearings faces a challenging period ahead as it deals with the impact of US sanctions and works to improve its financial performance. The company's efforts to seek removal from the sanctions list and its corporate governance actions, including the appointment of a new Company Secretary, indicate its commitment to addressing these challenges and maintaining compliance with regulatory requirements.

Investors and stakeholders will be closely watching the company's progress in resolving the sanctions issue and its ability to return to profitability in the coming quarters.

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

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.