Gautam Gems Reports Profit in Q1, Updates on UK Subsidiary Investment
Gautam Gems Limited reported a turnaround to profitability for Q1 FY2026 ended June 30, 2025. The company posted a profit after tax of ₹6.46 lakhs, compared to a loss of ₹14.59 lakhs in Q1 FY2025. Revenue remained stable at ₹7,547.92 lakhs. The company's planned Overseas Direct Investment in AG Corporation Ltd, UK, is still pending regulatory approvals and remittance of £100,000 share capital. Once completed, AG Corporation Ltd will become a Wholly Owned Subsidiary of Gautam Gems.
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Gautam Gems Limited , a prominent player in the gems and jewelry sector, has announced its financial results for the quarter ended June 30, 2025, showing a turnaround to profitability. The company also provided an update on its pending overseas investment in the United Kingdom.
Financial Performance
For the quarter ended June 30, 2025, Gautam Gems reported:
| Particulars (in ₹ lakhs) | Q1 FY2026 | Q1 FY2025 | Change |
|---|---|---|---|
| Revenue from Operations | 7,547.92 | 7,550.90 | -0.04% |
| Total Income | 7,547.93 | 7,550.90 | -0.04% |
| Profit Before Tax | 8.46 | (8.41) | N/A |
| Profit After Tax | 6.46 | (14.59) | N/A |
The company's revenue from operations remained relatively stable at ₹7,547.92 lakhs compared to ₹7,550.90 lakhs in the same quarter of the previous year. Notably, Gautam Gems turned profitable with a profit after tax of ₹6.46 lakhs, a significant improvement from the loss of ₹14.59 lakhs reported in the corresponding quarter last year.
Update on Overseas Investment
Gautam Gems provided an update on its Overseas Direct Investment (ODI) in AG Corporation Ltd, a company registered in the United Kingdom. The Board of Directors had previously approved this investment on September 24, 2024. Key points from the update include:
Regulatory Approvals Pending: Several regulatory approvals and procedural formalities are still pending for the completion of the ODI transaction.
Remittance Status: The remittance of £100,000 towards the share capital of AG Corporation Ltd has not yet been executed.
Subsidiary Status: Due to the pending remittance, AG Corporation Ltd is not yet recognized as a Wholly Owned Subsidiary (WOS) of Gautam Gems Limited under applicable Indian accounting standards, the Companies Act, 2013, and SEBI regulations.
Future Steps: The company is in the process of completing the remittance in accordance with applicable FEMA guidelines and will make further disclosures once the transaction is completed and the Wholly Owned Subsidiary status becomes effective.
Investment Details: Once the remittance is completed, Gautam Gems will hold 100% shareholding in AG Corporation Ltd, which was incorporated in 2023 and has not yet commenced operations.
Gautam P. Sheth, Managing Director of Gautam Gems Limited, is also a Director in AG Corporation Ltd, indicating a related party transaction.
The company's Board of Directors reviewed and approved these results in their meeting held on August 11, 2025. The financial results were subject to a limited review by the statutory auditors, M/s. AKGVG & Associates, Chartered Accountants.
Gautam Gems continues to navigate the complexities of international expansion while maintaining its focus on operational performance in the domestic market. The company's return to profitability in this quarter, coupled with its strategic moves for overseas investment, signals its commitment to growth and shareholder value creation.
Historical Stock Returns for Gautam Gems
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.41% | -5.82% | -4.75% | +0.96% | -57.77% | -85.43% |
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