GG Automotive Gears Limited has delivered impressive financial performance for the third quarter of FY26, demonstrating strong operational efficiency and growth momentum. The company's Board of Directors approved the unaudited financial results for the quarter ended December 31, 2025, during their meeting held on January 12, 2026.

Strong Financial Performance in Q3FY26

The company's financial metrics showed remarkable improvement across all key parameters during the third quarter:

Sequential Quarter Performance

Comparing with the previous quarter (Q2FY26), the company maintained steady growth momentum. Revenue from operations increased from ₹3,325.71 crores to ₹3,400.98 crores, while net profit rose from ₹332.76 crores to ₹345.96 crores, showing consistent operational performance.

Nine-Month Period Results

The year-to-date performance for the nine months ended December 31, 2025, showcased exceptional growth:

Operational Efficiency and Cost Management

The company demonstrated improved cost management with total expenses of ₹2,903.49 crores in Q3FY26 compared to ₹2,654.20 crores in Q3FY25. Key expense components included cost of materials consumed at ₹1,267.23 crores, employee benefits expenses of ₹391.82 crores, and other expenses totaling ₹655.73 crores. Finance costs decreased to ₹50.25 crores from ₹62.48 crores in the corresponding previous quarter.

Regulatory Matters and Corporate Governance

The Board also addressed regulatory compliance issues, noting that BSE Limited imposed a penalty on November 28, 2025, for non-compliance with board composition requirements during June 1 to September 30, 2025. The company submitted a clarification letter on December 3, 2025, and filed a penalty waiver application on December 16, 2025, which remains pending with BSE Limited.

Share Capital and Earnings Per Share

The company's paid-up capital stood at ₹999.00 crores with a face value of ₹10.00 per share. Basic earnings per share for Q3FY26 reached ₹3.46 compared to ₹2.75 in Q3FY25, reflecting the strong profit growth and improved shareholder returns.

GG Automotive Gears Limited has received a significant credit rating upgrade from CRISIL Ratings Limited. CRISIL has upgraded GG Automotive Gears' long-term rating to BBB/Stable from BBB-/Stable and short-term rating to A3+ from A3, citing improved operating performance, consistent revenue growth, and enhanced profitability.

Rating Upgrade Details

The comprehensive upgrade covers total bank loan facilities worth ₹25.00 crores.

Financial Performance Highlights

The rating upgrade is supported by strong financial performance improvements over recent periods. The company has demonstrated consistent revenue growth and enhanced profitability metrics.

The company's profitability has shown remarkable improvement, reaching 19.00% in the first half of fiscal 2026 compared to 12.80% in fiscal 2024. For the first half of fiscal 2026, the company reported revenue of ₹61.26 crores against ₹51.35 crores in the same period of the previous fiscal.

Business Strengths and Market Position

CRISIL highlighted several key strengths supporting the rating upgrade:

• Established market position in the locomotives gear business, backed by 45 years of experience
• Long-standing strategic partnership with Indian Railways
• Leading supplier of traction gears and shafts
• Successful diversification of product portfolio beyond railways, including gears and pinions for metro, oil and gas, wind energy, and earthmoving equipment industries

Financial Risk Profile and Liquidity

The company's financial risk profile has strengthened significantly with improved capital structure metrics. Key financial indicators demonstrate healthy debt management and liquidity position.

Promoters have demonstrated commitment by infusing ₹12.50 crores as capital over the past two fiscals, strengthening the company's net worth. The company maintains a robust order book of ₹105.00 crores scheduled for delivery over the next 12-18 months across various segments beyond railways.

Future Outlook

CRISIL expects the company to maintain minimum revenue growth of 10.00% over the medium term, supported by operational efficiency investments made over the past 1-2 years. The stable outlook reflects confidence in the company's ability to benefit from extensive promoter experience and established client relationships. Bank limit utilization remained moderate at around 45.00% for the 10 months through September 2025, indicating adequate liquidity management.