Gaja Alternative Asset Management Q2 profit rises on tax credit

Gaja Alternative Asset Management Limited reported consolidated profit of Rs 64.66 crore for the quarter ended September 30, 2026, up 54% from Rs 42.00 crore a year earlier, supported by a Rs 14.99 crore deferred-tax reversal and Rs 22.75 crore of sponsor-commitment income while revenue from operations fell 44% to Rs 38.44 crore.

What drove Gaja Alternative Asset Management's Q2 profit increase?

Gaja Alternative Asset Management's profit increase was supported by tax accounting, sponsor-commitment income and lower expenses rather than higher operating revenue. Profit before tax rose 13% to Rs 50.79 crore in the September 2026 quarter from Rs 44.95 crore a year earlier. Total tax expense turned into a Rs 13.87 crore credit, compared with a Rs 2.95 crore expense in the September 2025 quarter, taking reported profit above pre-tax profit.

The tax credit included a Rs 14.99 crore deferred-tax credit, against a Rs 44.86 lakh deferred-tax charge a year earlier. Gaja Alternative Asset Management said it reassessed the deferred-tax liability recognised on income from sponsor commitment during the quarter and recorded a reversal following that change in estimate. Current tax of Rs 72.02 lakh and tax relating to earlier years of Rs 40.46 lakh partly offset the deferred-tax credit.

Income from sponsor commitment was Rs 22.75 crore in the September 2026 quarter, compared with a negative Rs 62.52 lakh in the corresponding quarter. Other income rose to Rs 4.32 crore from Rs 1.23 crore. These items brought total income to Rs 65.51 crore, only 5% below Rs 69.15 crore a year earlier despite the decline in revenue from operations.

How did Gaja Alternative Asset Management's revenue and costs change?

Gaja Alternative Asset Management's revenue from operations declined by Rs 30.10 crore, or 44%, year on year to Rs 38.44 crore in the September 2026 quarter. The filing does not provide a product-level reason for the change. The Group manages and advises Alternative Investment Funds, or AIFs, registered in India, as well as certain offshore funds that provide capital to Indian companies.

The geographic disclosure shows India total income rose to Rs 18.07 crore from Rs 7.14 crore, while overseas total income declined to Rs 47.44 crore from Rs 62.01 crore. Overseas income remained the larger contributor in the quarter, but its Rs 14.57 crore decline exceeded the Rs 10.93 crore rise in Indian income. The two geographic figures totalled Rs 65.51 crore, consistent with consolidated income.

Total expenses fell 39% to Rs 14.72 crore from Rs 24.21 crore. Other expenses decreased to Rs 2.01 crore from Rs 11.01 crore, and employee-benefit expense declined to Rs 10.30 crore from Rs 11.31 crore. Depreciation and amortisation increased to Rs 1.27 crore from Rs 56.16 lakh, while finance costs fell to Rs 1.14 crore from Rs 1.32 crore.

The September 2025 quarterly comparison was neither audited nor reviewed, according to the filing. Price Waterhouse Chartered Accountants LLP issued a limited-review conclusion on the September 2026 consolidated results on November 4, 2026, but said it had not reviewed the September 2025 quarterly figures. A limited review is narrower in scope than an audit and does not provide an audit opinion.

What do Gaja Alternative Asset Management's half-year earnings and cash flows show?

Gaja Alternative Asset Management's profit for the half year ended September 30, 2026 rose 48% to Rs 91.88 crore from Rs 62.09 crore, while revenue from operations fell 46% to Rs 54.08 crore from Rs 99.30 crore. The half-year tax line was a Rs 9.16 crore credit, compared with a Rs 6.65 crore tax expense in the prior-year period, including a Rs 10.35 crore deferred-tax credit rather than a Rs 2.76 crore charge.

Sponsor-commitment income increased to Rs 52.46 crore for the six months from Rs 8.65 crore a year earlier, while other income rose to Rs 10.80 crore from Rs 2.42 crore. Total income therefore increased 6% to Rs 117.34 crore. Total expenses declined to Rs 34.62 crore from Rs 41.64 crore, and profit before tax rose to Rs 82.72 crore from Rs 68.73 crore.

Net cash flow from operating activities changed to an outflow of Rs 38.29 crore in the half year from an inflow of Rs 76.93 crore a year earlier. The cash-flow statement includes a Rs 54.46 crore change in fair value of investments as an adjustment to profit before tax, while trade receivables increased by Rs 21.41 crore. Cash generated from or used in operations was a Rs 38.03 crore outflow before tax payments, versus a Rs 79.01 crore inflow in the prior-year period.

Investing activities used Rs 389.27 crore, including Rs 322.21 crore invested in fixed deposits and Rs 68.50 crore in net investment acquisitions. Financing activities generated Rs 426.53 crore, principally from Rs 450.00 crore of fresh-equity proceeds less Rs 15.25 crore of share-issue expenses. Cash and cash equivalents ended September 30, 2026 at Rs 73.41 crore, compared with Rs 71.07 crore at the start of the period.

How did Gaja Alternative Asset Management's IPO affect its balance sheet?

Gaja Alternative Asset Management completed its initial public offering, or IPO, during the half year, raising Rs 450.00 crore through a fresh issue of 2,81,25,000 shares at Rs 160 each. The offering also included an offer for sale of 62,50,000 shares aggregating Rs 100.00 crore by selling shareholders. Its shares were listed on the National Stock Exchange and BSE on August 26, 2026.

Paid-up equity share capital rose to Rs 70.5051 crore at September 30, 2026 from Rs 56.4426 crore before the IPO. Equity attributable to owners increased to Rs 1,106.2305 crore from Rs 606.5149 crore at March 31, 2026, while total assets rose to Rs 1,176.515 crore from Rs 701.3352 crore. Bank balances other than cash and cash equivalents increased to Rs 377.3111 crore from Rs 35.0099 crore.

Non-current investments stood at Rs 459.6461 crore at September 30, 2026, up from Rs 360.109 crore at March 31, while current investments rose to Rs 165.3837 crore from Rs 138.0976 crore. Total liabilities declined to Rs 61.3836 crore from Rs 87.9862 crore. Current borrowings decreased to Rs 19.64 lakh from Rs 33.3992 crore, and non-current borrowings fell to Rs 2.2493 crore from Rs 8.1556 crore.

The filing also says Gaja Capital India Fund I, an associate recognised at fair value through profit or loss, prepares its financial statements on a realisable-value basis rather than a going-concern basis. Its term is scheduled to conclude on September 30, 2027. The associate's assets and liabilities are therefore stated at estimated realisable values.

Conclusion

Gaja Alternative Asset Management's 54% quarterly profit growth combined higher sponsor-commitment income, lower expenses and a Rs 14.99 crore deferred-tax reversal, even as operating revenue fell 44%. Pre-tax profit grew at a lower 13% rate, while half-year operating cash flow moved to a Rs 38.29 crore outflow from a Rs 76.93 crore inflow.

The next disclosed event to watch is the implementation of the Rs 0.50-per-share interim dividend for financial year 2026-27, approved on November 4, 2026, after shareholders approved a Rs 0.75-per-share final dividend on September 26, 2026. Gaja Capital India Fund I's scheduled September 30, 2027 conclusion is also relevant because of its realisable-value accounting basis.