Earnings call Transcript for the quarter ended June 30, 2026

Date: 11-08-2026 BSE Limited National Stock Exchange of India Limited Department of Corporate Services, Exchange Plaza, 5th Floor, Plot No. C/1, G P. J. Towers, Dalal Street, Block, Bandra Kurla Complex, Bandra Mumbai - 400 001 (East), Mumbai – 400 051 Scrip Code: 544244 Scrip Name: GALAPREC Dear Sir/Ma’am, Sub: Transcript of Earnings Call held for the quarter ended June 30, 2026 Pursuant to Regulation 30 read with Schedule III of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the transcript of the Company’s Earnings Call held on August 07, 2026, regarding discussion on operational and financial performance for the quarter ended June 30, 2026 (Q1 & FY27) is enclosed herewith. Please take the same on your records. Thanks & Regards, For Gala Precision Engineering Limited Pooja Ladha Company Secretary and Compliance Officer Encl: “Gala Precision Engineering Limited Q1 FY27 Earnings Conference Call” August 07, 2026 MANAGEMENT: MR. BALKISHAN JALAN – WHOLE-TIME DIRECTOR – GALA PRECISION ENGINEERING LIMITED MR. SATISH KOTWANI – WHOLE-TIME DIRECTOR – GALA PRECISION ENGINEERING LIMITED MR. SRINIVASAN GIRIDHAR – CHIEF FINANCIAL OFFICER – GALA PRECISION ENGINEERING LIMITED MODERATOR: MR. ROHAN BARANWAL – ARIHANT CAPITAL MARKETS LIMITED Gala Precision Engineering Limited August 07, 2026 Moderator: Ladies and gentlemen, good day and welcome to Q1 FY27 Earnings Conference Call of Gala Precision Engineering Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Rohan Baranwal from Arihant Capital. Thank you, and over to you, sir. Rohan Baranwal: Hello and good afternoon to everyone. On behalf of Arihant Capital Markets Limited, I thank you all for joining the call for joining into the Q1 FY27 Earnings Conference Call of Gala Precision Engineering Limited. Today from the management we have Mr. Balkishan Jalan, the Whole-time Director of the company; Mr. Satish Kotwani, the Whole-time Director of the company; Mr. Srinivasan Giridhar, the CFO of the company. So without further without any further delay, I'll hand over the call to the management for their opening remarks. Over to you, sir. Balkishan Jalan: Yeah, thank you, Rohan. Good evening, everyone, and welcome to our earnings call to discuss the performance of the first quarter of financial year 2027. In the interest of some of the people who are new to the company, let me give first brief overview of the company. Gala Precision is a preferred manufacturer of the high-quality precision components. We serve various sectors like renewable energy, industrial, and mobility. Geographically, we are diversified across sales in India, Europe, and USA market. We supply to Tier 1 OEM and channel partners. We manufacture customized product of over 800 SKU to serve almost 175 active global customer across 25 countries. Our facilities are fully equipped with the advanced technologies and integrated capability for designing, developing, and manufacturing a diverse portfolio. To further strengthen our manufacturing footprint and expand our product offering, we established a few fastener -- new fastener manufacturing facility in Chennai with installed capacity of 4,600 metric ton. The plant is focused on manufacturing high-tensile fastener, including bolts, complementing to our existing product portfolio and enhancing our ability to cater to the growing customer requirements. The quarter marked as a strong start for the financial year, with healthy progress across our business, manufacturing capabilities, and strategic initiatives. We delivered robust order booking growth of approximately 40% year-on-year, providing greater visibility for the quarters ahead. We also secured our first bulk commercial order from one of the India's leading electrolyzer manufacturer, representing an important milestone in our clean energy journey and validating our effort to diversify into a high-growth emerging sectors. Page 2 of 17 Gala Precision Engineering Limited August 07, 2026 Coming to our segmental performance, our Disc Springs DSS business continue to perform well, with sales growing 31% year-on-year, with the 54% contribution in Q1 FY27. DSS continue to be our largest segment. SFS contribute 29% of our revenue, amounting to 223 million, continuing to the benefit for increasing the customer adoption and new businesses wins. CSS accounts for remaining 17%, with the revenue of INR125 million, reflecting sturdy demand across industrial and mobility application. Our diversified portfolio continue to provide resilience, while positioning us to capture growth opportunity across multiple end-user segments. We successfully commissioned and productionized our new hot-dip galvanized plant at our Chennai facility, which will strengthen our manufacturing capabilities and enhance our ability to serve the customer more efficiently. We also successfully completed the development of the bolt for the industrial construction equipment applications, further expanding our product portfolio and opening up new business opportunities. From the strategic perspective, we appointed KPMG to undertake a comprehensive working capital optimization study, reflecting our continue focus on improving operational efficiency and capital productivity. Additionally, we signed an MoU for the acquisition of 10.15 acre of land at Wada, adjacent to our existing facility, which will support our long-term capacity expansion and future growth plans. Overall, we remain focused on executing our growth strategy, strengthening our operational excellence, and creating sustainable long-term value for all our stakeholders. With all, I will now hand over to our CFO, Mr. S. Giridhar, who will take through the financial highlights of the quarter under review. Yeah, Mr. Giridhar. Srinivas Giridhar: Thank you, Mr. Jalan. Good evening, everyone, and welcome to the earnings call today. Let me provide a brief overview of the financial performance for the quarter of financial year 2027. For the quarter under review, consolidated revenue from operations stood at around INR75 crores, reflecting the growth of 20% year-on-year. EBITDA for the quarter stood at around INR12 crores, up 28% year-on-year, with EBITDA margins at 16.51%. Net profit stood at INR8 crores, representing a growth of 29% year-on-year, with PAT margins at 11.44%. With this, we can open the floor for question-and-answer session. Thank you. Moderator: Thank you very much. The first question is from the line of Juhi Manwani, an Individual Investor. Please proceed. Juhi Manwani: Hello. Am I audible? Moderator: Yes. Page 3 of 17 Gala Precision Engineering Limited August 07, 2026 Juhi Manwani: Yeah. So my question is, what is what is the FY27 margin bridge from 16.51% to your 17% to 19% guide and split across forex normalization, Chennai leverage and mix? Srinivas Giridhar: Yeah, the FY27 margins would likely be in the range of 17% to 19% moving ahead and I don't think there should be any impact because our foreign exchange business we are already covering through hedges. So it will be between 17% to 19%. Balkishan Jalan: Yeah, so Juhi, I will just add two points. One point is about the Chennai facility, where still we are not optimum utilizing that facility, and that will be -- we are seeing quarter-on-quarter, third quarter and fourth quarter, we will be seeing the optimum utilization of Chennai facility, which will again. And second more important is quarter 1 revenue is approximately 20%-22% of the overall year revenue. So quarter-on-quarter, we will see the revenue growth, which again will help us in better utilization of the fixed overhead and improving the margin. So a [Showing first 8,000 characters — download PDF for full document]