Gala Precision Engineering Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Gala Precision Engineering Ltd filed with BSE on 18 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Gala Precision Engineering reported Q4 FY26 consolidated revenue of around Rs 95 crore, up 26% year-on-year, with EBITDA margins at 17.57% and net profit of Rs 12 crore. For the full year, revenue stood at Rs 314 crore, up 32%, with EBITDA of Rs 52 crore and net profit after exceptional items of Rs 36 crore. Management discussed the Chennai fastener facility ramp-up, the SFS segment crossing Rs 108 crore in revenue with 64% year-on-year growth, land acquisition plans in Wada and Chennai, and the impact of a forex loss on margins.
Numbers mentioned
Consolidated revenue: around INR95 crores (Q4 FY26)
p. 4
“consolidated revenue from operations stood at around INR95 crores, reflecting a growth of 26% year-on-year”
Srinivas Giridhar, page 4 of the filed PDF · View the filing
EBITDA: around INR17 crores (Q4 FY26)
p. 4
“EBITDA for the quarter stood at around INR17 crores, up 31% year-on-year with EBITDA margins at 17.57%”
Srinivas Giridhar, page 4 of the filed PDF · View the filing
Net profit: INR12 crores (Q4 FY26)
p. 4
“Net profit stood at INR12 crores, representing a growth of 22% year-onyear with PAT margins at 12.9%”
Srinivas Giridhar, page 4 of the filed PDF · View the filing
Revenue: INR314 crores (FY26)
p. 4
“For the full year FY26, revenue from operations stood at INR314 crores, reflecting a healthy growth of 32% year-on-year”
Srinivas Giridhar, page 4 of the filed PDF · View the filing
EBITDA: INR52 crores (FY26)
p. 4
“EBITDA for the year stood at INR52 crores, up 27% year-on-year with EBITDA margins at 16.51%”
Srinivas Giridhar, page 4 of the filed PDF · View the filing
Net profit before exceptional items: INR37 crores (FY26)
p. 4
“Net profit before exceptional items stood at INR37 crores, registering a growth of 35% year-onyear, PAT margins at 11.64%”
Srinivas Giridhar, page 4 of the filed PDF · View the filing
Net profit after exceptional items: INR36 crores (FY26)
p. 4
“net profit after exceptional items stood at INR36 crores, registering a growth of 32% year-on-year, PAT margins at 11.29%”
Srinivas Giridhar, page 4 of the filed PDF · View the filing
SFS segment revenue: INR108 crores (FY26)
p. 3
“SFS revenue crossed INR100 crores milestone, reaching INR108 crores, and registered a strong growth of 64% year-on-year”
Balkishan Jalan, page 3 of the filed PDF · View the filing
Chennai plant utilization: around 35% (FY26)
p. 3
“During FY26, the plant operated at around 35% utilization and we expect utilization level to improve meaningfully in FY26”
Balkishan Jalan, page 3 of the filed PDF · View the filing
Forex loss impact on EBITDA margin: 1%, around INR3.23 crores (FY26)
p. 9
“The drop is essentially mainly is on account of the forex loss, which is almost 1%, which is around INR3.23 crores”
Srinivasan Giridhar, page 9 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Overall revenue growth — 20% to 25%
stated as an aspiration by Satish Kotwani
p. 4
“as a company, we are looking to grow 20% to 25% sector in overall revenue term”
Satish Kotwani, page 4 of the filed PDF · View the filing
Wind fastener and spring category growth — 25% to 30% · short term
stated as an aspiration by Satish Kotwani
p. 4
“in wind also we are looking to grow around 25% to 30% in short term for our fasteners and spring category”
Satish Kotwani, page 4 of the filed PDF · View the filing
Chennai Phase 2 capacity completion — additional 60 crores annual capacity · by June end, July
stated firmly by Balkishan Jalan
p. 5
“parallelly we started the Phase 2 capex, which should be completing by June end, July”
Balkishan Jalan, page 5 of the filed PDF · View the filing
Chennai overall annual capacity — 120 crores per annum · current year
stated firmly by Balkishan Jalan
p. 5
“Then overall capacity, annual capacity is 120 crores per annum”
Balkishan Jalan, page 5 of the filed PDF · View the filing
Inventory days — reduce by some 10 days
stated as an aspiration by Balkishan Jalan
p. 5
“we were trying that we can reduce this inventory days by some 10 days or so”
Balkishan Jalan, page 5 of the filed PDF · View the filing
Cash flow to EBITDA conversion — improve by 10% · year-on-year
stated as an aspiration by Balkishan Jalan
p. 5
“We as of now our guidance is we will maintain or we will try to improve by 10% or 10% or so on year-on-year.”
Balkishan Jalan, page 5 of the filed PDF · View the filing
Land acquisition in Wada — at least June, maybe July
stated conditionally by Balkishan Jalan
p. 6
“At least at least June. Because land, apart from closing, then we need to do some due diligence and some paper notice and closing the deal at least take a 45 days minimum.”
Balkishan Jalan, page 6 of the filed PDF · View the filing
Chennai revenue — approximately INR80 crores · FY27
stated firmly by Balkishan Jalan
p. 7
“in ’26, ’27, we are targeting approximately INR80 crores something from the Chennai”
Balkishan Jalan, page 7 of the filed PDF · View the filing
Chennai revenue potential next year — INR80 crores to INR120 crores · year after FY27
stated as an aspiration by Balkishan Jalan
p. 7
“So, next to next year again, we have scope to achieve INR80 crores to INR120 crores from Chennai”
Balkishan Jalan, page 7 of the filed PDF · View the filing
New plant capex — approximately INR50 crores · current year
stated conditionally by Balkishan Jalan
p. 8
“for the current year, we are seeing approximately INR50 crores something we may be able to deploy plus minus depend when we finalize the land or able to start the construction of the building”
Balkishan Jalan, page 8 of the filed PDF · View the filing
Raw material cost pass-through
stated firmly by Srinivasan Giridhar
p. 9
“raw material is 100% pass through”
Srinivasan Giridhar, page 9 of the filed PDF · View the filing
EBITDA margin — between 17% to 19% · FY27 end
stated conditionally by Srinivas Giridhar
p. 15
“going ahead considering there is no further volatility, we expect the margins to stabilize between 17% to 19%.”
Srinivas Giridhar, page 15 of the filed PDF · View the filing
Export contribution — between 35% to 40% · next two to three years
stated as an aspiration by Balkishan Jalan
p. 13
“I think export will continue to be between 35% to 40% of our sales.”
Balkishan Jalan, page 13 of the filed PDF · View the filing
Offshore wind contribution to fastener sales — about 10% · two to three years
stated as an aspiration by Satish Kotwani
p. 11
“in short term in two to three years, we see offshore wind partnership contribute about 10% of Gala Precision Engineering Limited”
Satish Kotwani, page 11 of the filed PDF · View the filing
Chennai plant utilization — approximately 67% to 70% of INR120 crores · FY27
stated firmly by Balkishan Jalan
p. 14
“we are seeing approximately INR80 crores something will be achieving the manufacturing or sale value in next year, which is going to be approximately 67% 70% of INR120 crores”
Balkishan Jalan, page 14 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the wind energy market is positive and Gala expects strong growth given its base in the sector.
Answered by Satish Kotwani
Asked by Lakshminarayan KG: What is the order book and revenue visibility for wind energy going forward?
p. 4
“In wind energy, approximately 60% to 65% of our sales is coming from India market and about 30% to 35% is export.”
Satish Kotwani, page 4 of the filed PDF · View the filing
Management described the ramp-up trajectory from Phase 1 to Phase 2 capacity.
Answered by Balkishan Jalan
Asked by Lakshminarayan KG: What is the Chennai facility revenue ramp-up plan?
p. 5
“we reached to almost a 5 crores Phase 1 capacity per month, which is approximately 60 crores annually.”
Balkishan Jalan, page 5 of the filed PDF · View the filing
Management said discussions with landowners in Wada are advanced and they are also exploring SIPCOT land in Chennai.
Answered by Balkishan Jalan
Asked by Arpit Jain: What is the update on land acquisition for expansion in Wada or elsewhere?
p. 6
“We shortlisted few land parcel in Wada and we are in advanced discussion, commercial discussion and with the two or three plot, rather than three plots.”
Balkishan Jalan, page 6 of the filed PDF · View the filing
Management attributed the decline mainly to a forex loss rather than product mix or raw material contribution changes.
Answered by Srinivasan Giridhar
Asked by Rudraksh Gupta: Why did EBITDA margins drop to a five-year low of 16.5%?
p. 9
“The drop is essentially mainly is on account of the forex loss, which is almost 1%, which is around INR3.23 crores.”
Srinivasan Giridhar, page 9 of the filed PDF · View the filing
Management said raw material costs are fully passed through to customers, with a lag effect.
Answered by Srinivasan Giridhar
Asked by Rudraksh Gupta: How is the company managing raw material and commodity inflation?
p. 9
“So, and of course, currently because of gas and some other issues, this process costs have also increased.”
Srinivasan Giridhar, page 9 of the filed PDF · View the filing
Management explained growth came from new customer additions, new products for existing customers, and organic growth.
Answered by Satish Kotwani
Asked by Lakshminarayanan KG: What has driven the company's revenue growth over the last two years?
p. 10
“So, I think 10% of new customer addition, about 10% to 12% of new parts from existing customer like bolts or Gallock or even retractor spring, and organic growth of 5% to 7% happening in the organic business with the existing part has resulted is this 30% growth last year.”
Satish Kotwani, page 10 of the filed PDF · View the filing
Management said the case is ongoing with no arguments yet, next hearing in June.
Answered by S Giridhar
Asked by Arpit Jain: What is the status of the patent lawsuit related to wedge lock washers?
p. 12
“The case is still going on, still the arguments have not taken place. We’ve been getting only adjustments.”
S Giridhar, page 12 of the filed PDF · View the filing
Management cited increasing market share with existing customers, the Chennai bolt ramp-up, and new opportunities in industrial sectors like gas turbines and railways.
Answered by Satish Kotwani
Asked by Danish Shah: What are the key growth drivers for the SFS segment over the next two to three years?
p. 12
“we started getting approval from the Indian OEM and we started supplies in quarter four.”
Satish Kotwani, page 12 of the filed PDF · View the filing
Management said they reduced forward cover from 70% to 40% of estimated export collections.
Answered by Srinivas Giridhar
Asked by Tanya Arora: What is the current hedging policy for currency exposure?
p. 13
“But now we have there has been a change in the methodology, we have reduced that to 40%.”
Srinivas Giridhar, page 13 of the filed PDF · View the filing
Management said the FTA will reduce import duty to zero but the benefit may be offset by CBAM costs.
Answered by Satish Kotwani
Asked by Tanya Arora: Have EU-India tariff changes created new export opportunities?
p. 14
“We see this benefit what will come as a FTA will get nullified with this CBAM additional cost which our customers have to pay for imports from India.”
Satish Kotwani, page 14 of the filed PDF · View the filing
Management said the dip was due to forex loss and expects margins to stabilize in the 17-19% range.
Answered by Srinivas Giridhar
Asked by Arpit Jain: When can margins return to 18-19%?
p. 15
“this dip primarily the dip was only because of this forex loss of 1% which is around INR3.23 crores, which has impacted the current year’s margin.”
Srinivas Giridhar, page 15 of the filed PDF · View the filing
Management confirmed a top-line benefit from currency depreciation but noted offsetting non-cash losses from forward covers.
Answered by Srinivas Giridhar
Asked by Sujal Jain: Did currency depreciation benefit Q4 numbers?
p. 15
“there benefit is there. But at the same time, it also because we undertake forward covers also, so it resulted in an non-cash loss also.”
Srinivas Giridhar, page 15 of the filed PDF · View the filing
Risks flagged
Forex loss impacted EBITDA margins
p. 9
“The drop is essentially mainly is on account of the forex loss, which is almost 1%, which is around INR3.23 crores.”
Srinivasan Giridhar, page 9 of the filed PDF · View the filing
Rising commodity and gas process costs
p. 9
“currently because of gas and some other issues, this process costs have also increased.”
Srinivasan Giridhar, page 9 of the filed PDF · View the filing
CBAM could offset FTA duty benefits in Europe
p. 14
“there is an impact possible of CBAM on which European countries are working on.”
Satish Kotwani, page 14 of the filed PDF · View the filing
Limited land availability constraining Wada and Chennai expansion
p. 7
“we don’t have any land after yeah, we don’t have any land after we complete the Phase 2 expansion, that means the INR120 crores per annum.”
Balkishan Jalan, page 7 of the filed PDF · View the filing
Time lag in passing through currency and cost fluctuations to customers
p. 15
“there is always a time lag gap like a quarter to quarter is very difficult to say that there is a net-net profit or loss because of the currency and overall cost.”
Balkishan Jalan, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.