Gandhi Special Tubes Limited has issued a clarification to BSE Limited regarding recent volume movements in its scrip, stating that the increases are purely market-driven with no underlying corporate developments. The response, dated 18 February 2026, addresses BSE's surveillance inquiry about unusual trading activity in the company's shares.

Company's Response to BSE Inquiry

The company responded to BSE's volume movement letter referenced as L/SURV/ONL/PV/API/2025-2026/922 dated 18 February 2026. In its clarification, Gandhi Special Tubes emphasized that it has maintained full compliance with disclosure requirements under SEBI regulations.

Regulatory Compliance Confirmation

The company confirmed that it has timely informed both NSE and BSE of all events and information that could impact its operations and performance. This includes all price-sensitive information as required under Regulation 30 and other applicable provisions of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key compliance aspects highlighted include:

• Timely disclosure of all material events to both exchanges
• Adherence to price-sensitive information disclosure requirements
• Compliance with Regulation 30 of SEBI LODR Regulations
• Commitment to continue making applicable disclosures within stipulated timeframes

Management's Position on Volume Movement

Gandhi Special Tubes categorically stated that there is no pending information or announcement from the company that may have influenced the volume behavior in its scrip. The management emphasized that the increase in volume and price is "absolutely market driven" and that the company's management has no connection with such movements.

The response was signed by Chaitali Kachalia, Company Secretary & Compliance Officer, and digitally authenticated on 18 February 2026. The company operates from its registered office at Plaza, Hughes Road, Mumbai, and maintains its commitment to transparent market practices and regulatory compliance.

Gandhi Special Tubes Limited delivered strong financial performance in the third quarter of FY26, reporting a significant 30% year-on-year increase in net profit to ₹1,969.97 lakhs compared to ₹1,516.06 lakhs in Q3FY25. The company's revenue from operations grew robustly by 22% to ₹4,844.21 lakhs from ₹3,976.76 lakhs in the corresponding quarter of the previous year.

Financial Performance Overview

The company's quarterly results demonstrate strong operational efficiency despite facing exceptional charges. Total income for Q3FY26 reached ₹5,447.61 lakhs, marking a substantial increase from ₹4,183.60 lakhs in Q3FY25. Other income contributed significantly at ₹603.40 lakhs compared to ₹206.84 lakhs in the previous year quarter.

Operational Expenses and Margins

Total expenses for the quarter stood at ₹2,705.63 lakhs compared to ₹2,391.33 lakhs in Q3FY25. Key expense components included cost of materials consumed at ₹1,652.11 lakhs, employee benefits expenses of ₹243.66 lakhs, and power & fuel costs of ₹296.65 lakhs. The company maintained disciplined cost management across most expense categories.

Exceptional Items Impact

The company recorded exceptional charges of ₹118.12 lakhs during the quarter, attributed to the implementation of new Labour Codes notified by the Government of India effective November 21, 2025. This one-time charge represents incremental estimated obligations for employees' past services under the regulatory changes.

Nine-Month Performance

For the nine-month period ended 31 December 2025, Gandhi Special Tubes demonstrated consistent growth momentum. Net profit increased 26% to ₹5,899.95 lakhs from ₹4,672.57 lakhs in the corresponding period of FY25. Revenue from operations grew 12% to ₹14,456.19 lakhs compared to ₹12,920.21 lakhs in the previous year.

Tax Management and Comprehensive Income

The company's tax expense for Q3FY26 totaled ₹653.89 lakhs, including current tax of ₹587.00 lakhs and deferred tax of ₹66.89 lakhs. Total comprehensive income for the quarter reached ₹1,972.02 lakhs, incorporating other comprehensive income of ₹2.05 lakhs related to employee benefit remeasurements.

Board Approval and Compliance

The unaudited financial results were approved by the Board of Directors at their meeting held on 10 February 2026, following recommendation by the Audit Committee. The statutory auditors S.V. Doshi & Co. conducted a limited review of the results in accordance with applicable standards. The company maintains its paid-up equity share capital at ₹607.60 lakhs with a face value of ₹5 per share.