Gretex Corporate Services Reports Mixed Q2 Results with Profit Growth Despite Revenue Decline

Gretex Corporate Services Limited has reported mixed financial results for the second quarter, showing profit growth despite a decline in revenue.

Q2 Financial Highlights

Key financial metrics for Q2 include:

Metric	Q2 (in million rupees)	YoY Change
Net Profit	115.00	+16.16%
Revenue	796.00	-15.05%
EBITDA	318.00	+90.42%
EBITDA Margin	39.92%	+22.10 percentage points

The company's net profit increased to 115.00 million rupees from 99.00 million rupees in the same quarter last year, representing a 16.16% year-over-year growth. However, revenue declined to 796.00 million rupees from 937.00 million rupees in the previous year.

Notably, Gretex Corporate Services saw a significant improvement in its EBITDA, which surged to 318.00 million rupees from 167.00 million rupees. The EBITDA margin expanded substantially to 39.92% from 17.82% year-over-year, indicating improved operational efficiency.

Preferential Issue Approval

In addition to the financial results, the company's board has approved the issuance of 1,00,000 equity warrants on a preferential basis. The key details of this preferential issue are:

Issue Price: Rs 300.00 per equity warrant
Total Fundraising: Rs 3.00 crore
Allottees: Non-promoter category investors

The company plans to issue these warrants to Mrs. Anzila Negi and Mr. Arun Negi, each receiving 50,000 warrants for a consideration of Rs 1.50 crore each.

Corporate Governance Updates

The board meeting also saw the approval of revised company policies, including:

Whistle blower policy
Audit committee policy
Policy on Determination of materiality
Code of conduct for merchant banker
Preservation of documents and archival policy
Familiarization Program policy of Independent Directors

These policy revisions underscore Gretex Corporate Services' commitment to maintaining robust corporate governance standards.

Conclusion

Despite the revenue decline, the growth in profitability and the decision to raise additional capital through a preferential issue suggest that Gretex Corporate Services is focusing on improving its financial position and operational efficiency. The company's efforts to strengthen its governance framework may be viewed positively by investors and stakeholders.

The preferential issue is subject to necessary approvals, including shareholder approval through a postal ballot process. The company will be seeking these approvals in due course, in compliance with SEBI regulations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.12%	-6.29%	+40.76%	+7.78%	+7.78%	+7.78%

Gretex Corporate Services Limited (GCSL) has announced plans to explore equity fundraising options, signaling a potential expansion of its capital base. The company's board of directors is set to convene on November 13, 2025, to discuss various fundraising avenues, including a possible rights issue, preferential allotment, or qualified institutional placement (QIP).

Board Meeting Agenda

The upcoming board meeting will address two key items:

Review of Financial Results: The board will examine the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025, along with the Limited Review Report from the auditors.
Fundraising Considerations: Directors will deliberate on raising funds through the issuance of equity shares or other eligible securities. The company is exploring various permissible methods, subject to regulatory and statutory approvals.

Potential Fundraising Methods

Gretex Corporate Services is considering several options for its equity issuance:

Method	Description
Rights Issue	Offering new shares to existing shareholders
Preferential Issue	Allotting shares to a select group of investors
Qualified Institutional Placement	Issuing securities to qualified institutional buyers

The final decision on the fundraising method will be made by the board, in compliance with applicable laws and regulations.

Trading Window Closure

In line with SEBI regulations and the company's insider trading policy, GCSL has implemented a trading window closure:

Closure Period: October 1, 2025, until 48 hours after the declaration of financial results
Affected Parties: Designated persons and their immediate relatives

This measure ensures fair trading practices and prevents insider trading during sensitive periods.

Investors and stakeholders should note that the company's decision to raise funds is subject to board approval and market conditions. The outcome of the board meeting on November 13, 2025, will provide more clarity on Gretex Corporate Services' fundraising plans and financial performance for the recent quarter.