Gretex Industries Limited (GRETEX)
Latest quarterly results (H2 FY26)
In its latest reported quarter, H2 FY26, Gretex Industries' revenue was ₹27.6 Cr (+44.0% year on year, -1.8% on the previous half-year), and net profit ₹0.1 Cr (-94.4% year on year); the operating margin was 1.3%.
| H2 FY26 (₹ Cr) | Value | YoY vs H2 FY25 | vs prev. half |
|---|---|---|---|
| Revenue | ₹27.6 | +44.0% | -1.8% |
| Operating profit | ₹0.4 | -40.3% | -33.9% |
| Net profit | ₹0.1 | -94.4% | -91.9% |
| EPS (₹) | 0.09 | -92.4% | -88.9% |
| Operating margin | 1.3% | — | — |
📢 Recent Corporate Announcements
Gretex Industries announced the completion of its postal ballot e-voting on October 09, 2026, with all four special resolutions passed unanimously. Shareholders approved the sale/disposal of the company's entire investments in two material subsidiaries—Gretex RS Properties LLP and Gretex Aran Properties LLP—and subsidiary Sunview Nirman Private Limited directly to promoter family members (Harlalka family). For resolutions 1 to 3, promoter votes totaling 10,070,680 were marked invalid under related party transaction norms, while public shareholders cast 2,397,940 votes (100%) in favor. Additionally, shareholders approved the utilization of funds raised via a preferential issue.
- 100% of valid votes (2,397,940 votes) approved the sale of stakes in Gretex RS Properties LLP, Gretex Aran Properties LLP, and Sunview Nirman Pvt Ltd to promoters.
- 10,070,680 promoter votes were classified as invalid for the first three resolutions pursuant to SEBI LODR related party transaction norms.
- Shareholders unanimously passed Resolution 4 for the utilization of funds raised through a preferential issue with 12,468,620 valid votes.
- E-voting concluded on October 09, 2026, and the scrutinizer report was finalized on October 12, 2026.
Gretex Industries approved the allotment of 3,09,660 equity shares upon conversion of warrants to promoter entity Gretex Corporate Services Limited. The shares were allotted at an issue price of Rs 236 per share, representing a total investment amount of Rs 5.48 crore. This marks the third tranche of conversions under the preferential issue of 13,64,410 warrants approved in early 2025. The infusion of Rs 5.48 crore is equivalent to about 1.7% of Gretex's current market capitalization of Rs 320 crore.
- Allotment of 3,09,660 equity shares of face value Rs 10 each
- Conversion executed at an issue price of Rs 236 per equity share
- Total subscription/investment amount stands at Rs 5,48,09,820
- Allotted to promoter group entity Gretex Corporate Services Limited as part of the third tranche of 13,64,410 total warrants
Gretex Industries approved the allotment of 1,97,800 equity shares following the conversion of warrants in a second tranche. The shares were allotted to promoter group entity Gretex Corporate Services Limited at an issue price of ₹236 per share, representing an investment amount of ₹3,50,10,600 (₹3.50 crore). The underlying warrants were originally approved in February-March 2025 out of a total tranche of 13,64,410 warrants.
- Allotment of 1,97,800 equity shares of face value ₹10 each pursuant to warrant conversion
- Allotment made at an issue price of ₹236 per equity share
- Total subscription/investment amount received is ₹3,50,10,600 (₹3.50 crore)
- Shares allotted to promoter group entity Gretex Corporate Services Limited
- Conversion is part of 13,64,410 total warrants approved in early 2025
Gretex Industries Limited has been granted a dealership by Sony India Private Limited for its pro audio products in West Bengal, effective September 19, 2026. The appointment makes the company an authorised dealer for the region, expanding its distribution portfolio beyond existing brands like Yamaha. With a TTM revenue of ₹93 crore and operating margins of 1.7%, commercial contribution will depend on execution, as no minimum volume commitments or financial values were disclosed in the intimation.
- Appointed authorised dealer for pro audio by Sony India Private Limited effective September 19, 2026
- Territory granted is restricted to West Bengal
- Contractual value, expected revenue, and volume commitments are not disclosed in the filing
Gretex Industries Limited has issued a Postal Ballot notice seeking shareholder approval for multiple resolutions, including the divestment of its entire investment in its material subsidiary, Gretex RS Properties LLP, to Mr. Sumeet Harlalka and Ms. Sashi Harlalka. Additionally, the company seeks approval to realign unutilised preferential issue proceeds, reducing the allocation for Arpan Tie Up Private Limited by ₹23.16 lakh (to ₹5.76 crore) and reallocating ₹23.16 lakh toward working capital requirements (increasing it to ₹14.52 crore). Remote e-voting runs from September 10, 2026, to October 09, 2026, with a cut-off date of August 28, 2026.
- E-voting starts September 10, 2026 (9:00 AM) and closes October 09, 2026 (5:00 PM)
- Shareholder voting cut-off date set as August 28, 2026
- Special Resolution proposed to dispose of entire stake in material subsidiary Gretex RS Properties LLP
- Preferential proceeds for Arpan Tie Up Pvt Ltd reduced by ₹23,15,690 to ₹5,75,84,310
- Working capital allocation from proceeds increased by ₹23,15,690 to ₹14,52,16,260
Gretex Industries Limited has entered into a Share Purchase Agreement (SPA) dated August 25, 2026 (notarised on September 3, 2026) to acquire a 98% equity stake in Arpan Tie Up Pvt Ltd, an NBFC. Following completion of customary terms and applicable approvals, Arpan Tie Up will become a subsidiary of Gretex. While transaction value was not disclosed in the current update, this formalizes the acquisition process underway since July 2025.
- Entered into Share Purchase Agreement (SPA) dated August 25, 2026 to acquire 98% equity stake
- Target company is Arpan Tie Up Pvt Ltd, a Non-Banking Financial Company (NBFC)
- SPA was duly notarised on September 03, 2026
- Target will become a 98% subsidiary upon closing under applicable laws
Gretex Industries Limited has executed a Share Purchase Agreement (SPA) dated August 25, 2026 (notarised September 3, 2026) to acquire a 98% equity stake in Arpan Tie Up Pvt Ltd, an NBFC company. Upon closing, Arpan Tie Up will become a subsidiary of Gretex, subject to applicable regulatory approvals and closing conditions. This announcement follows earlier deal updates communicated since July 2025. Transaction consideration and financial details of the target entity were not disclosed in this filing.
- Executed Share Purchase Agreement dated 25 August 2026 (notarised 03 September 2026)
- Acquiring 98% equity shareholding in Arpan Tie Up Pvt Ltd
- Target is an NBFC company and will become a subsidiary post-closing
- Follows previous exchange intimations dated July 26, 2025, August 19, 2025, May 27, 2026, and June 30, 2026
Gretex Industries' Board has approved the sale of its stakes in three subsidiaries to promoters and related parties for a total aggregate consideration of up to ₹26.90 crore. The transactions include disposing of a 75.30% interest in Gretex RS Properties LLP (up to ₹6.45 crore), 99.92% in Gretex Aran Properties LLP (up to ₹12.85 crore), and 88% in Sunview Nirman Pvt Ltd (up to ₹7.60 crore). The proposed cumulative consideration represents ~51.7% of the company's net worth (₹52 crore) and ~28.9% of TTM revenue (₹93 crore). In addition, the Board postponed a planned capital fundraise and approved a postal ballot to seek shareholder approval for these related-party disposals within a 1-year timeline.
- Approved sale of 75.30% stake in Gretex RS Properties LLP to promoter Sumeet Harlalka and Sashi Harlalka for up to ₹6.45 crore (contributed 15.85% to net worth).
- Approved disposal of 99.92% stake in Gretex Aran Properties LLP to promoter Arvind Harlalka and Anita Harlalka for up to ₹12.85 crore.
- Approved sale of 88.00% equity stake in Sunview Nirman Pvt Ltd to promoter group members Alok Harlalka and Pooja Harlalka for up to ₹7.60 crore.
- Combined potential cash inflow of up to ₹26.90 crore against negligible revenue contribution from these non-core entities.
- Postponed proposed fundraising through Rights Issue/QIP/Preferential issue for the time being.
Gretex Industries Limited has allotted 8,470 equity shares of face value ₹10 each at an issue price of ₹236 per share pursuant to the conversion of warrants. This allotment constitutes the second tranche under its preferential warrant issue originally approved in early 2025 for a total of 13,64,410 warrants. The total investment amount received from non-promoter allottee Pradip Agarwal stands at ₹14,99,190. Given the minimal size of this tranche relative to the company's ₹448 crore market cap, the dilution and financial impact are negligible.
- Allotted 8,470 equity shares of face value ₹10 each pursuant to warrant conversion
- Issue price executed at ₹236 per equity share
- Total consideration received stands at ₹14,99,190 from a non-promoter allottee
- Tranche forms part of the 13,64,410 warrants approved by shareholders on March 5, 2025
Gretex Industries approved the allotment of 3,40,000 equity shares of face value ₹10 each pursuant to warrant conversions to promoter group entity Gretex Corporate Services Limited. The shares were allotted at an issue price of ₹236 per share, bringing in ₹6.02 crore as part of the first tranche. This allotment stems from the earlier approval for 13,64,410 preferential warrants approved in March 2025.
- Allotted 3,40,000 equity shares to promoter group entity Gretex Corporate Services Limited
- Allotment price fixed at ₹236 per share against the prevailing market price of ~₹300
- Cash consideration/subscription amount received is ₹6,01,80,000 (₹6.02 crore)
- First tranche conversion out of a total 13,64,410 warrants approved in March 2025
Gretex Industries has approved the 100% acquisition of Chaitak Sales Private Limited and a direct 5.32% stake in its subsidiary, Dailmer Industries, for a total cash consideration of ‡14.5 crore. While Chaitak has negligible revenue, Dailmer Industries reported a FY26 turnover of ‡134.5 crore, which is approximately 1.4x Gretex's TTM revenue of ‡93 crore. This acquisition marks a significant diversification into the wholesale metal trading segment, though the target's revenue has shown a declining trend over the last three years.
- Total acquisition cost of ‡14.5 crore represents approximately 28% of Gretex's current net worth of ‡52 crore.
- Target subsidiary Dailmer Industries reported FY26 turnover of ‡134.5 crore, significantly exceeding Gretex's TTM revenue.
- Acquisition of 100% of Chaitak Sales involves 20,000 equity shares at a price of ‡6,866.37 per share.
- Direct acquisition of 5.32% in Dailmer Industries involves 30,000 shares at ‡257.09 per share.
- Dailmer Industries' turnover has declined from ‡247.4 crore in FY24 to ‡134.5 crore in FY26.
Gretex Industries has approved the acquisition of 100% of Chaitak Sales Private Limited and a direct 5.32% stake in its subsidiary, Dailmer Industries, for a total cash consideration of Rs 14.50 Cr. While Chaitak has negligible revenue, its subsidiary Dailmer reported a turnover of Rs 133.67 Cr in FY26, which is approximately 1.4x Gretex's current TTM revenue of Rs 93 Cr. This acquisition marks a significant expansion into the wholesale metal trading segment, though the target's revenue has shown a declining trend over the last three years.
- Total acquisition cost of Rs 14.50 Cr represents approximately 28% of Gretex's current net worth of Rs 52 Cr
- Target subsidiary Dailmer Industries reported FY26 turnover of Rs 133.67 Cr, significantly exceeding Gretex's TTM revenue
- Acquisition includes 100% of Chaitak Sales (20,000 shares) and a direct 5.32% stake in Dailmer Industries (30,000 shares)
- Dailmer Industries' revenue has declined by 45% over two years, from Rs 245.71 Cr in FY24 to Rs 133.67 Cr in FY26
- The transaction is a 100% cash deal and does not involve any related party interests
Gretex Industries has entered into a distribution arrangement with global brands Pioneer DJ and Audio Technica for the state of West Bengal. The company will act as the official distributor for their professional audio and DJ equipment range, aiming to deepen regional market penetration. This move complements Gretex's existing portfolio, which includes exclusive rights for Yamaha products. Investors should note that while this expands the product line, the company currently operates on thin TTM operating margins of 1.7% on a revenue base of ₹93 Cr.
- Appointed as official distributor for Pioneer DJ & Audio Technica in West Bengal
- Targets the high-demand professional audio and DJ equipment sector
- Leverages existing distribution infrastructure used for premium brands like Yamaha
- Company TTM revenue stands at ₹93 Cr with a market capitalization of ₹448 Cr
- Operating profit margin remains low at 1.7% as per latest TTM data
Gretex Industries concluded its 17th Annual General Meeting on July 27, 2026, with all six resolutions passed by the requisite majority. Shareholders approved the adoption of FY26 financial statements and the appointment of a new Independent Director for a five-year term. A significant special resolution was passed to change the utilization of funds previously raised through a preferential issue, though specific reallocation details were not in this summary. Approximately 83.93% of total shares were voted, with 9.82 million promoter shares excluded from the Related Party Transaction vote due to conflict of interest.
- 6 resolutions passed including a special resolution to change the utilization of preferential issue funds.
- 83.93% of total outstanding shares (13,014,560 votes) were polled during the meeting.
- 9,821,680 promoter votes were excluded from the Related Party Transaction resolution as interested parties.
- 5-year appointments confirmed for both the Secretarial Auditor (D.A. Kamat & Co) and Independent Director Priyanka Marvania.
Gretex Industries Limited has appointed M/s. D.A. Kamat & Co as its Secretarial Auditor following shareholder approval at the 17th Annual General Meeting on July 27, 2026. The appointment is for a five-year term commencing from FY 2026-27 through FY 2030-31. The firm brings 22 years of experience in corporate law and advisory services. This is a standard procedural compliance under SEBI regulations and does not impact the company's financial operations.
- Appointment of M/s. D.A. Kamat & Co for a 5-year consecutive term.
- The term covers Financial Years 2026-27 through 2030-31.
- The auditing firm has a 22-year track record in providing consulting and advisory services.
- Shareholder approval was obtained at the 17th AGM held on July 27, 2026.
Financial Performance
Revenue Growth by Segment
Core trading operations in musical instruments grew 5.15% YoY to ₹32.92 crores in FY25, up from ₹31.13 crores in FY24.
Geographic Revenue Split
Not disclosed in available documents, though the company focuses on metropolitan and emerging markets across India.
Profitability Margins
Net Profit Margin fell significantly from 32.07% in FY24 to 4.85% in FY25, representing an 84.87% decline due to the normalization of other income components.
EBITDA Margin
ROCE (Return on Capital Employed) dropped from 80.07% in FY24 to 5.73% in FY25, a 92.84% decrease, reflecting the absence of exceptional investment income.
Capital Expenditure
The company is reallocating ₹2.00 crores from a prior preferential issue to invest in a new subsidiary for working capital requirements.
Credit Rating & Borrowing
Interest coverage ratio declined by 93.93% YoY to 3.29 in FY25, down from 54.14 in FY24, following increased working capital financing through overdraft facilities.
Operational Drivers
Raw Materials
Musical instruments (finished goods for trading) represent the primary inventory and cost component.
Import Sources
Imports are primarily sourced through USD-INR and JPY-INR corridors, indicating procurement from the United States and Japan.
Key Suppliers
Key distribution and supply partners include Yamaha, D’Addario, Promark, Evans Drumheads, IA Stands, Boya, and Gappu.
Capacity Expansion
The company expanded its entity structure through the merger of Apsara Selection Ltd. and Sankhu Merchandise Pvt. Ltd. into Gretex Industries Ltd. in FY25.
Raw Material Costs
Total expenses increased marginally in FY25 in alignment with enhanced business activity levels; procurement strategies involve strategic brand alliances.
Manufacturing Efficiency
Not applicable as the company operates primarily in trading; however, inventory turnover fell 46.02% to 4.22 in FY25.
Strategic Growth
Growth Strategy
Growth will be driven by strategic brand alliances, experiential retail expansion, institutional outreach, and integrated digital engagement. The company is also investing ₹2.00 crores into a new subsidiary to support business growth initiatives.
Products & Services
Musical instruments including drums, strings, stands, and audio equipment.
Brand Portfolio
Yamaha, D’Addario, Promark, Evans Drumheads, IA Stands, Boya, and Gappu.
Market Expansion
Expansion plans target metropolitan and emerging markets across India through experiential retail and brand alliances.
Strategic Alliances
Exclusive distribution arrangements with globally recognized brands like Yamaha and D’Addario.
External Factors
Industry Trends
The industry is seeing a post-pandemic normalization where the surge in home-based recreational demand is stabilizing, leading to more unpredictable consumption patterns.
Competitive Landscape
The company operates in a challenging global market environment with increasing consumer volatility.
Competitive Moat
Moat is built on exclusive distribution rights for premium global brands like Yamaha, which provides a competitive advantage in the high-end musical instrument segment.
Macro Economic Sensitivity
Highly sensitive to discretionary spending levels and currency exchange rate volatility (USD/JPY).
Consumer Behavior
Shift from pandemic-driven home hobbies to normalized discretionary spending in urban markets.
Geopolitical Risks
Risks are primarily linked to trade corridors with the US and Japan and their respective currency stability.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act, 2013 and SEBI (LODR) Regulations, 2015; the company maintains an internal audit system commensurate with its size.
Taxation Policy Impact
The company is regular in depositing undisputed statutory dues including income tax and GST; no arrears exceeding six months were reported.
Legal Contingencies
The company reported zero pending litigations in its financial statements as of March 31, 2025.
Risk Analysis
Key Uncertainties
Unpredictable consumer demand normalization and high exposure to USD/JPY currency corridors pose significant risks to sustained volumes and margins.
Geographic Concentration Risk
Operations are concentrated within the Indian market, specifically metropolitan and urban centers.
Third Party Dependencies
Significant dependency on exclusive distribution partners like Yamaha and D’Addario for core product supply.
Technology Obsolescence Risk
The company is mitigating digital risks through an integrated digital engagement and marketing strategy.
Credit & Counterparty Risk
Trade receivables turnover ratio declined by 25.92% to 9.61 in FY25, indicating a slight slowdown in collections.
