Gallard Steel Ltd (544616)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Gallard Steel's revenue was ₹36.5 Cr (+13.6% year on year, +15.6% on the previous half-year), and net profit ₹4.8 Cr (+53.7% year on year); the operating margin was 21.4%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹36.5 | +13.6% | +15.6% |
| Operating profit | ₹7.8 | +23.0% | +5.1% |
| Net profit | ₹4.8 | +53.7% | +12.1% |
| EPS (₹) | 5.06 | +13.2% | -17.5% |
| Operating margin | 21.4% | — | — |
📢 Recent Corporate Announcements
Gallard Steel Ltd submitted a clarification to the BSE on August 19, 2026, in response to an exchange query dated August 18, 2026, regarding significant movement in its share price. The company confirmed that there is no undisclosed price-sensitive information or announcement under Regulation 30 of SEBI (LODR) Regulations that needs disclosure. Management stated that recent price fluctuations are purely market-driven and outside the company's control.
- Clarification filed on 19th August 2026 following BSE letter dated 18th August 2026
- Confirmed no pending disclosures under Regulation 30 of SEBI LODR Regulations, 2015
- Management attributed recent share price movement entirely to market conditions
Gallard Steel Ltd has executed an agreement with the Madhya Pradesh Industrial Development Corporation (MPIDC) for the allotment of 30,700.00 Sq Mt of leasehold industrial land. The land is located at Plot no. A-09-A, Industrial Smart Industrial Township, Pithampur Sector-7, Indore. The total consideration for this acquisition is Rs. 7.02 Crore. This acquisition is intended to support the company's long-term expansion strategy, including capacity augmentation and product diversification.
- Acquisition of 30,700.00 Sq Mt of leasehold industrial land in Pithampur, Madhya Pradesh.
- Total consideration for the land allotment is Rs. 7.02 Crore.
- Agreement executed with Madhya Pradesh Industrial Development Corporation (MPIDC).
- Follows a previous corporate announcement regarding the application dated June 25, 2026.
- Land intended for capacity expansion and diversification of product portfolio.
Financial Performance
Revenue Growth by Segment
Total revenue grew by 30.26% YoY, reaching INR 26.82 Cr in Mar 2024 compared to INR 20.59 Cr in Mar 2023. While specific segment percentages are not disclosed, the company operates in engineered steel castings for railways, defence, and power generation.
Profitability Margins
Net profit margins improved significantly to 11.85% in Mar 2024 from 5.48% in Mar 2023. Operating Profit Margin (OPM) increased from 9.28% to 18.94% over the same period, driven by better cost management as expenses grew only 16.3% despite a 30% revenue jump.
EBITDA Margin
Operating Profit (EBITDA proxy) stood at INR 5.08 Cr in Mar 2024, representing an 18.94% margin, which is a 104% increase in margin percentage from the 9.28% recorded in Mar 2023.
Capital Expenditure
The company undertook significant capital expenditure in FY24, with cash from investing activities at a negative INR 9.12 Cr. This led to an increase in Net Fixed Assets from INR 5.29 Cr in Mar 2023 to INR 12.86 Cr in Mar 2024, a 143% expansion to support increased production of steel castings.
Credit Rating & Borrowing
Total borrowings increased by 87.67% to INR 17.66 Cr in Mar 2024 from INR 9.41 Cr in Mar 2023. Interest costs rose by 52.7% to INR 1.13 Cr, suggesting an average borrowing cost of approximately 6.4% based on year-end debt levels.
Operational Drivers
Raw Materials
Mild steel, SGCI (Spheroidal Graphite Cast Iron), and low alloy castings are the primary raw materials used in the foundry process.
Capacity Expansion
Fixed assets increased by INR 7.57 Cr (143% growth) in FY24, and Capital Work-in-Progress (CWIP) stands at INR 4.85 Cr, indicating ongoing expansion of the foundry and machining facilities.
Raw Material Costs
Raw material and manufacturing expenses totaled INR 21.74 Cr in Mar 2024, representing 81.05% of revenue, down from 90.72% in Mar 2023, indicating improved procurement efficiency or higher value-add product mix.
Manufacturing Efficiency
Operating profit per unit of sales doubled YoY, indicating higher manufacturing efficiency and better utilization of the newly added fixed assets (INR 12.86 Cr).
Strategic Growth
Expected Growth Rate
30%
Growth Strategy
The company is targeting growth through the expansion of its manufacturing base, evidenced by the 143% increase in fixed assets to INR 12.86 Cr. It is focusing on high-value sub-assemblies for the railway (traction motors) and power sectors (hydro turbines) where technical barriers are higher than standard castings.
Products & Services
Engineered steel castings, traction motor components, bogie components, thermal turbine sub-assemblies, hydro turbine sub-assemblies, and industrial machinery components.
Brand Portfolio
Gallard Steel.
Market Expansion
The company is expanding its footprint in the defence and power generation sectors to diversify away from pure industrial machinery.
External Factors
Industry Trends
The industry is shifting toward integrated machining and assembly rather than just raw castings. Gallard is positioning itself as a component and sub-assembly manufacturer to capture higher margins in the growing railway and defence supply chains.
Competitive Landscape
Operates in the fragmented steel casting and auto component sector, competing with other SME foundries and specialized engineering firms.
Competitive Moat
The company possesses a technical moat in manufacturing SGCI and low alloy castings for specialized applications like traction motors. This is sustainable due to the rigorous qualification processes required by railway and defence departments.
Macro Economic Sensitivity
Highly sensitive to government infrastructure spending, particularly in the Indian Railways and power sectors, which drive demand for traction motors and turbine components.
Consumer Behavior
Not applicable as the company is a B2B industrial manufacturer.
Regulatory & Governance
Industry Regulations
Operations are subject to industrial safety and pollution control norms for foundries, as well as stringent quality standards for railway and defence component manufacturing.
Taxation Policy Impact
The effective tax rate for FY24 was 13.35%, significantly lower than the 25.49% in FY23, contributing to the 181% jump in net profit.
Risk Analysis
Key Uncertainties
The primary uncertainty is the sharp rise in debtor days to 123.84, which could indicate credit risks or disputes with major customers, potentially impacting cash flow by over 50% of annual profit.
Third Party Dependencies
Dependency on the railway and power sectors for the majority of sub-assembly orders makes the company vulnerable to changes in government procurement cycles.
Technology Obsolescence Risk
The shift toward electric propulsion in various industrial machineries requires constant R&D in traction motor component design to avoid obsolescence.
Credit & Counterparty Risk
Receivables quality is a concern as debtor days rose from 80.30 to 123.84, suggesting a potential strain on the liquidity of its industrial and utility customers.
