Narbada Gems & Jewellery Limited , a prominent player in the Indian gems and jewellery sector, has reported a significant surge in its quarterly profit, alongside other key developments in its recent board meeting.

Financial Performance

The company posted impressive financial results for the second quarter:

*All figures in Rs. lakhs, except EPS

The company's total revenue reached Rs 2,633.61 lakhs, marking a substantial increase from the corresponding previous period. The net profit saw an extraordinary jump to Rs 401.09 lakhs, compared to Rs 10.38 lakhs in the same quarter last year, representing a remarkable year-on-year growth of over 3,763%.

Half-Yearly Performance

For the half-year ended September 30, 2025, Narbada Gems & Jewellery reported:

• Total revenue of Rs 4,696.82 lakhs
• Net profit of Rs 532.74 lakhs
• Basic and diluted EPS of Rs 2.52

Operational Highlights

The company's operational efficiency is evident from its improved profit margins. The cost of materials consumed stood at Rs 1,905.22 lakhs for the quarter, while employee benefit expenses were Rs 100.16 lakhs.

Board Meeting Outcomes

In a board meeting held on November 14, 2025, several key decisions were made:

1. Approval of Unaudited Financial Results: The board approved the unaudited financial results for Q2 and H1 FY2025-26.

2. Related Party Transaction: The board approved a related party transaction under Section 188(1)(c) of the Companies Act, 2013. This involves renting additional premises from the company's promoters, effective from December 1, 2025.

3. Merger Update: The board noted that the next hearing at the National Company Law Tribunal (NCLT) Hyderabad for the merger with Uday Jewellery Industries is scheduled for November 17, 2025.

Auditor's Review

The statutory auditors, Anant Rao & Mallik, Chartered Accountants, have conducted a limited review of the financial results. They have not found any material misstatement in the financial information presented by the company.

Market Implications

The substantial profit growth and strategic decisions made by Narbada Gems & Jewellery Limited may have positive implications for investors. The company's ability to significantly improve its bottom line demonstrates its operational efficiency and market positioning.

The approved related party transaction for additional premises suggests that the company may be preparing for expansion. Additionally, the ongoing merger process with Uday Jewellery Industries, once completed, could lead to synergies and further strengthen the company's market position.

Investors and market analysts will likely keep a close watch on the company's performance in the coming quarters, as well as the progress of its merger plans.

Narbada Gems & Jewellery Limited (NGJL) has reached a significant milestone in its proposed merger with Uday Jewellery Industries Limited. The company announced that the National Company Law Tribunal (NCLT) has admitted its Second Motion Petition for hearings, marking a crucial step forward in the amalgamation process.

Merger Petition Details

The admitted petition, filed as Form CAA-5, pertains to the Scheme of Amalgamation between Narbada Gems & Jewellery Limited and Uday Jewellery Industries Limited. This development signals that the NCLT has found the petition in order and is ready to proceed with the next phase of the merger process.

Next Steps

According to the company's statement, the petition is expected to be listed for hearing shortly. This hearing will provide an opportunity for the NCLT to review the merger proposal in detail and consider any representations from stakeholders.

Management's Communication

Sanjay Kumar Sanghi, Managing Director of Narbada Gems & Jewellery Limited, signed the official communication to the BSE Limited, emphasizing the company's commitment to keeping the exchange and investors informed of further developments in this matter.

Implications for Investors

The admission of the merger petition by the NCLT is a positive sign for the proposed amalgamation. However, it's important to note that this is still a part of the ongoing process, and the final approval for the merger is subject to the NCLT's decision after the hearings.

Transparency and Compliance

NGJL's prompt disclosure of this development aligns with the regulatory requirements under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency helps investors stay informed about significant corporate actions that may impact the company's future structure and operations.

As the merger process progresses, stakeholders of both Narbada Gems & Jewellery Limited and Uday Jewellery Industries Limited will be keenly watching for the outcome of the NCLT hearings and any subsequent steps in the amalgamation journey.