GAAML Q2 FY27 profit rises 138% with Rs 15 crore tax gain

Gaja Alternative Asset Management Limited reported Q2 FY27 profit after tax of Rs 64.7 crore, up 138% from Rs 27.2 crore in Q1 FY27, including a Rs 15 crore gain from reversing a deferred-tax charge. Total income rose 26% sequentially to Rs 65.5 crore, while expenses fell 26%.

What were GAAML’s Q2 FY27 financial results?

GAAML reported total income of Rs 65.5 crore in Q2 FY27, compared with Rs 51.8 crore in Q1 FY27, while total expenses declined to Rs 14.7 crore from Rs 19.9 crore. Profit after tax, or PAT, rose to Rs 64.7 crore from Rs 27.2 crore over the preceding quarter. These were unaudited consolidated results for the quarter ended September 30, 2026.

GAAML also reported annualised earnings per share, or EPS, of Rs 20.2 for Q2 FY27, versus Rs 9.5 in Q1 FY27. The faster percentage increase in PAT than in income reflected the Rs 5.2 crore sequential fall in expenses and the disclosed deferred-tax reversal. The announcement does not provide a Q2 PAT figure adjusted to exclude that tax item.

What caused GAAML’s 138% sequential PAT increase?

GAAML said its Q2 FY27 PAT included a Rs 15 crore gain from reversal of a deferred-tax charge. That item was equivalent to about 23% of the reported Rs 64.7 crore PAT, so the 138% sequential increase includes an identified tax-related accounting gain rather than only movements in income and expenses.

The other disclosed changes were a Rs 13.7 crore increase in total income and a Rs 5.2 crore reduction in total expenses between Q1 FY27 and Q2 FY27. GAAML did not provide a quarterly split of income among management fees, carried interest, gains on sponsor commitments and treasury income. The contribution of each revenue stream to the Rs 65.5 crore Q2 income therefore cannot be determined from the release.

How did GAAML perform in the first half of FY27?

GAAML recorded H1 FY27 total income of Rs 117.3 crore, up 6% from Rs 110.4 crore in H1 FY26, while PAT rose 48% to Rs 91.9 crore from Rs 62.1 crore. Total expenses fell 17% to Rs 34.6 crore from Rs 41.6 crore in the prior-year half. The reported comparison shows that H1 profit increased faster than income as the cost base declined.

GAAML’s cost-to-income ratio improved to 29.5% in H1 FY27 from 37.7% in H1 FY26, a reduction of 8.2 percentage points. Annualised EPS was Rs 15.1, compared with Rs 11.0 a year earlier. Management said H1 income came from three of the four Gaja Capital Funds, indicating that more than one fund contributed to reported income during the half year.

What fund activity did GAAML report during Q2 FY27?

GAAML said Fund IV made two new investments during Q2 FY27, taking its portfolio to nine companies. The fund was 87% deployed against committed capital at the end of the quarter. The announcement did not identify the investee companies or disclose the value of either new investment.

GAAML also reported a significant liquidity event from Fund II during Q2 FY27, but did not disclose its value or the relevant portfolio company. For Eastgate Secondaries, GAAML said it appointed a senior investment-team hire with more than 20 years of full-cycle private-equity investing experience. These updates accompanied management’s statement that three of four Gaja Capital Funds generated H1 FY27 income.

What does GAAML’s balance sheet and dividend announcement show?

GAAML reported net worth of Rs 1,106.2 crore as of September 30, 2026, with 62% held in cash and liquid investments. Managing Director and Chief Executive Officer Gopal Jain said GAAML carried no debt and that treasury income had become a fourth pillar alongside management fees, carried interest and gains on sponsor commitments.

The Board recommended an interim dividend of 10%, or Rs 0.50 per share, following a Rs 0.75-per-share dividend for FY26. Management said that cash and liquid investments represented a significant part of net worth and enhanced GAAML’s capacity to raise new funds. The release does not specify a target amount, timetable or planned size for a future fund raise.

What is GAAML’s business model?

GAAML describes itself as a listed alternatives manager that acts as fund manager to India-focused Category II alternative investment funds, or AIFs, and adviser to offshore funds. Its funds invest in innovation-led, high-growth, mid-market businesses. GAAML is listed on the National Stock Exchange under the symbol GAJA and on BSE under code 544885.

Management identified management fees, carried interest, gains on sponsor commitments and treasury income as four income sources. That mix is relevant to H1 FY27, when GAAML reported Rs 117.3 crore of total income and said three funds contributed income, while 62% of its Rs 1,106.2 crore net worth was in cash and liquid investments. The release does not quantify income or profit from any individual source.

Conclusion

GAAML’s Q2 FY27 result combined a 26% sequential increase in total income, a 26% decline in expenses and a Rs 15 crore deferred-tax reversal, resulting in PAT of Rs 64.7 crore, up 138% from Q1 FY27. Across H1 FY27, income rose 6%, expenses fell 17% and PAT increased 48%, while the cost-to-income ratio moved to 29.5% from 37.7%.

The next disclosed operational markers are Fund IV’s deployment beyond 87% of committed capital, further information on the Fund II liquidity event and progress on management’s stated capacity to raise new funds. Investors can also watch for record-date and payment details for the recommended Rs 0.50-per-share interim dividend, which were not included in the release.