Gala order booking rises 44% and passes Rs 100 crore in Q2 FY27

Gala Precision Engineering reported a 44% year-on-year increase in Q2 FY27 order booking, crossing Rs 100 crore in a quarter for the first time, while revenue from operations rose 31.2% to Rs 93.7 crore. The company also recorded EBITDA of Rs 15.7 crore, up 42.7%, and PAT of Rs 10.6 crore, up 26.2%.

Why did Gala’s order booking cross Rs 100 crore?

Gala’s Q2 FY27 order booking rose 44% year on year and exceeded Rs 100 crore for the first time in a quarter. The presentation does not provide the absolute booking value, customer names, order duration or conversion schedule, but identifies approvals and product development in railway safety, offshore wind, mining equipment and electrolyzers as operational developments during the period.

The order-booking milestone came alongside Q2 revenue growth of 31.2% year on year to Rs 93.7 crore, compared with Rs 71.4 crore in Q2 FY26. Revenue also increased 24.3% sequentially from Rs 75.4 crore in Q1 FY27, showing that reported sales rose both against the prior-year quarter and the immediately preceding quarter.

Gala received approval from global customers for Gallock products used in critical applications across railway safety, offshore wind and mining equipment. The presentation treats this as an approval rather than a booked order or recorded revenue, so it does not establish how much of the Q2 booking increase came from Gallock or when approved applications may contribute to sales.

How did Gala’s Q2 FY27 profit compare with Q2 FY26?

Gala’s Q2 FY27 EBITDA grew faster than revenue, rising 42.7% year on year to Rs 15.7 crore from Rs 11 crore, while the EBITDA margin increased by 135 basis points to 16.76%. EBITDA was also 27.6% higher than Rs 12.3 crore in Q1 FY27, and the margin was 45 basis points above the preceding quarter’s 16.31%.

The company’s Q2 profit after tax, or PAT, after exceptional items was Rs 10.6 crore, 26.2% above Rs 8.4 crore a year earlier and 29.3% above Rs 8.2 crore in Q1 FY27. However, PAT margin after exceptional items was 11.31%, down 45 basis points from 11.76% in Q2 FY26, although it increased 43 basis points from 10.88% in Q1 FY27.

Total expenses rose 29.1% to Rs 78 crore in Q2 FY27 from Rs 60.4 crore in Q2 FY26, a lower rate than the 31.2% revenue increase. Depreciation increased 47.8% to Rs 3.4 crore, while finance cost rose 20% to Rs 60 lakh; tax expense doubled to Rs 2.4 crore from Rs 1.2 crore.

What did Gala report for the first half of FY27?

Gala reported H1 FY27 revenue of Rs 169.1 crore, up 25.7% from Rs 134.5 crore in H1 FY26, while EBITDA increased 34.6% to Rs 28 crore. The half-year EBITDA margin was 16.56%, 110 basis points higher than 15.46% in the comparable prior-year period.

H1 FY27 PAT after exceptional items increased 25.5% to Rs 18.7 crore from Rs 14.9 crore, while PAT margin was largely unchanged at 11.06%, versus 11.08%. Diluted earnings per share, not annualised, rose 25.2% to Rs 14.32 from Rs 11.44, according to the consolidated profit and loss statement.

The H1 performance followed revenue growth in FY24, FY25 and FY26, when revenue rose from Rs 202.5 crore to Rs 237.8 crore and then Rs 314.3 crore. EBITDA margin, however, moved from 19.16% in FY24 to 17.16% in FY25 and 16.51% in FY26, before reaching 16.56% in H1 FY27.

Which new products and operational projects could matter next?

Gala has product development underway for offshore wind, electrolyzers and railway safety applications, with estimated annual customer potential of Rs 100 crore. This is an estimate of customer potential cited by the company, not a revenue forecast, order backlog or contract value, and the presentation does not specify a launch date or expected conversion rate.

The company commissioned a 1.8-megawatt direct-current solar project under an open-access model, with estimated annual cost savings of Rs 1.3 crore. It also implemented SAP HANA across all plants, with the enterprise system going live on October 7, 2026, providing a dated operational milestone rather than a quantified earnings impact.

Gala’s stated future-growth strategy includes finding uses for existing products in the hydrogen value chain, electrolyzers, electric vehicles and high-speed trains. Its plan also includes expanding the Fasteners and Springs product range, using local hiring and warehouse or logistics arrangements in Europe and the United States to increase exports, and offering advanced materials, kitting solutions and smart fasteners.

How are Gala’s capital spending and funding positioned?

Gala had received Rs 121.24 crore in IPO proceeds in its monitoring account and utilised Rs 89.58 crore, according to the proceeds update. Of the deployed amount, Rs 45.43 crore went to loan repayment, Rs 31.94 crore to Chennai capital expenditure, Rs 11.07 crore to Wada capital expenditure and Rs 1.14 crore to general corporate purposes.

The company reported Rs 31.66 crore of IPO proceeds still available, including Rs 5.06 crore for Chennai capital expenditure and Rs 26.61 crore for general corporate purposes. The proceeds update also showed fixed deposits of Rs 20 crore with HDFC Bank and Rs 11.49 crore with Yes Bank, alongside Rs 17 lakh of interest earned.

At H1 FY27, Gala’s property, plant and equipment stood at Rs 92.9 crore, up from Rs 84.4 crore at FY26, while capital work-in-progress increased to Rs 9.3 crore from Rs 7.3 crore. It also secured Rs 58 crore of bank financing, including fund-based and non-fund-based facilities, for working capital and term loans; the presentation does not state the facility drawdown or interest rate.

Conclusion

Gala’s first quarterly order booking above Rs 100 crore, following 44% year-on-year growth, coincided with Q2 FY27 revenue growth of 31.2% and EBITDA growth of 42.7%. The comparison shows expanding quarterly sales and an increased EBITDA margin, while PAT margin remained below the prior-year quarter despite sequential improvement to 11.31%.

The next items to watch are management’s execution of the Rs 5.06 crore Chennai capital-expenditure balance, use of Rs 26.61 crore allocated to general corporate purposes, and progress in converting the stated Rs 100 crore annual customer potential in offshore wind, electrolyzers and railway safety. Gallock approvals and the solar project’s estimated Rs 1.3 crore annual savings are additional disclosed developments without a specified revenue or savings realisation timetable.