Gloster has reported contrasting financial performance for the third quarter, with the company experiencing a shift from profitability to losses despite achieving substantial revenue growth. The results highlight the complex dynamics affecting the company's operations during this period.

Financial Performance Overview

The company's financial metrics for the third quarter present a mixed picture of operational performance:

Revenue Growth Analysis

The company demonstrated remarkable top-line expansion with revenue reaching ₹3.8 billion in the third quarter, representing more than a doubling from ₹1.78 billion in the corresponding quarter of the previous year. This substantial revenue increase of over 113% indicates significant business growth and market expansion activities.

Profitability Concerns

Despite the strong revenue performance, Gloster faced profitability challenges during the quarter. The company reported a consolidated net loss of ₹7.4 million, marking a significant shift from the ₹8.3 million profit recorded in the same quarter last year. This swing from profit to loss suggests that the revenue growth came with increased operational costs or other financial pressures that impacted the bottom line.

Performance Assessment

The third quarter results reflect a period of significant business transformation for Gloster, characterized by substantial revenue expansion accompanied by profitability pressures. The dramatic increase in revenue indicates strong market demand and successful business development initiatives, while the shift to losses highlights the operational challenges associated with rapid growth phases.

Gloster Limited has announced a postal ballot to seek shareholder approval for significantly increasing its borrowing powers and asset mortgage limits. The company issued the notice on January 5, 2026, proposing to double the existing financial limits from ₹250 crores to ₹500 crores to support its expanding business operations.

Key Proposals Under Consideration

The postal ballot includes two special resolutions that require shareholder approval under the Companies Act, 2013:

The first resolution seeks to increase borrowing powers to enable the Board of Directors to borrow funds from banks, financial institutions, and other entities. The second resolution aims to enhance limits for creating mortgages, pledges, or charges on the company's movable and immovable properties.

E-Voting Process and Timeline

The company will conduct the postal ballot exclusively through electronic voting, with no physical ballot forms being distributed to shareholders. The e-voting process has been structured as follows:

Shareholders whose names appear in the Register of Members as of the cut-off date and have registered email addresses will be eligible to participate in the voting process.

Business Rationale and Background

The company's explanatory statement reveals that the current borrowing and mortgage limits were established through special resolutions passed on September 22, 2018. The proposed increase reflects the company's growing fund requirements to support business operations and expansion activities.

Under Section 180(1)(c) of the Companies Act, 2013, companies must obtain shareholder consent through special resolution when borrowing amounts exceed the aggregate of paid-up capital, free reserves, and securities premium. Similarly, Section 180(1)(a) requires shareholder approval for creating mortgages or charges on company properties.

Voting Rights and Procedures

Voting rights will be proportional to shareholding, with one vote per equity share registered in the shareholder's name. The company has engaged CDSL to facilitate the e-voting process, ensuring secure and transparent voting procedures.

Key voting guidelines include:

• Corporate and institutional members can vote through authorized representatives
• Proxy voting is not permitted for postal ballots
• Once cast, votes cannot be modified or changed
• Results will be submitted to stock exchanges within two working days of voting conclusion

The Board of Directors has recommended both resolutions for approval, noting that no directors, key managerial personnel, or their relatives have any financial interest in the proposed resolutions. The enhanced borrowing capacity and asset mortgage limits are expected to provide the company with greater financial flexibility to pursue growth opportunities and meet operational requirements.