Gujarat Poly Avx Electronics , a manufacturer and trader of electronic capacitors, has reported a substantial decline in its revenue for the quarter ended September 30, 2025, while simultaneously announcing plans for a strategic land acquisition.

Financial Performance

The company's financial results for Q2 FY2026 paint a challenging picture:

Despite the sharp decline in operational revenue, Gujarat Poly Avx Electronics managed to report a significant increase in net profit, primarily driven by other income sources.

Land Acquisition

In a strategic move, the company's Board has approved the acquisition of leasehold rights for land and a factory building:

• Location: Gandhinagar Electronic Estate, Gujarat
• Area: Approximately 800 square meters
• Cost: ₹3.65 crores (exclusive of additional expenses)

The agreement for this acquisition will be executed upon receiving the Provisional Transfer Order from Gujarat Industrial Development Corporation (GIDC).

Cash Position

The company's liquidity position has shown improvement:

• Cash and cash equivalents as of September 30, 2025: ₹200.85 lakhs
• Compared to ₹182.84 lakhs as of March 31, 2025

Outlook

While the dramatic drop in operational revenue raises concerns, the company's ability to maintain profitability and its decision to invest in new property suggests a strategic realignment. The land acquisition may indicate plans for expansion or modernization of manufacturing facilities, potentially aimed at revitalizing its core business operations.

Investors and stakeholders will likely be watching closely to see how Gujarat Poly Avx Electronics plans to address the significant decline in its primary business revenue and leverage its new property acquisition to drive future growth.

Gujarat Poly Avx Electronics Limited (GPEL) has finalized a significant property transaction, selling its Gandhinagar assets to Tirex Transmission Private Limited for Rs 29 crore. The deal, which includes both land and building rights, marks a strategic move for the company as it prepares to relocate its operations.

Transaction Details

The property sale encompasses:

Regulatory Compliance and Approvals

GPEL has meticulously followed the regulatory process for this transaction:

• Received provisional transfer order (PTO) from Gujarat Industrial Development Corporation (GIDC)
• Obtained shareholder approval
• Executed the agreement

The deal's completion is contingent upon receiving final transfer orders from GIDC.

Financial Impact

The property being sold contributed significantly to GPEL's financial performance in the last fiscal year:

Despite this, GPEL assures that the sale will not adversely affect its turnover, as arrangements have been made to relocate operations to a new site.

Transaction Nature

Key points about the nature of this transaction include:

• Buyer (Tirex Transmission) is not part of GPEL's promoter group
• Transaction is conducted on an arm's length basis
• Not classified as a related party transaction
• Complies with Regulation 37A of SEBI Listing Regulations

Looking Ahead

This property sale represents a significant corporate action for Gujarat Poly Avx Electronics Limited. While the company is divesting a property that previously accounted for its entire turnover, it has taken steps to ensure business continuity by arranging for a new operational location. Stakeholders will likely be watching closely to see how this transition impacts GPEL's future financial performance and operational efficiency.

As the transaction progresses towards completion, pending final approvals from GIDC, it will be crucial for investors and market observers to monitor any updates or changes in the company's operational strategy and financial outlook.