Gamco first-half profit reaches Rs 38.4898 crore on revenue

GAMCO LIMITED reported consolidated profit of Rs 38.4898 crore for the six months ended September 30, 2026, compared with Rs 6.50 crore a year earlier. Revenue from operations rose to Rs 254.0897 crore from Rs 141.9815 crore, led by sale-of-goods trading revenue of Rs 229.0049 crore.

How did Gamco perform in the first half?

Gamco reported profit for the period of Rs 38.4898 crore for the half year ended September 30, 2026, up from Rs 6.50 crore in the corresponding 2025 period. Profit after tax before the share of associates was Rs 38.6056 crore, while its share of loss from associates was Rs 11.58 lakh, compared with a Rs 2.55 lakh associate loss a year earlier.

The improvement reflected income growth exceeding the increase in expenses. Total income rose to Rs 254.6565 crore from Rs 142.4234 crore, while total expenses increased to Rs 213.2392 crore from Rs 132.7013 crore. Profit before tax and the share of associates rose to Rs 41.4173 crore from Rs 9.7221 crore, while total tax expense declined to Rs 2.8117 crore from Rs 3.1966 crore.

Gamco's basic and diluted earnings per share, not annualised, rose to Rs 7.12 from Rs 1.20 in the previous first half. Its reported net profit margin, defined in the filing as profit after tax divided by total income, was 15.19%, compared with 4.60%. The audit committee and board reviewed and approved the unaudited consolidated results on October 31, 2026.

What drove Gamco's revenue increase?

Gamco's largest revenue increase came from sale of goods in trade, which rose by Rs 108.0212 crore year on year to Rs 229.0049 crore in the first half from Rs 120.9837 crore. This line represented the largest component of the Rs 254.0897 crore revenue-from-operations total for the six months ended September 30, 2026.

Net gain on fair-value changes rose to Rs 21.3485 crore from Rs 16.6672 crore. Interest income increased to Rs 43.70 lakh from Rs 33.11 lakh, while dividend income fell to Rs 1.3076 crore from Rs 1.4876 crore. Income from derivatives declined to Rs 1.9917 crore from Rs 2.5119 crore, leaving trading sales and fair-value gains as the main sources of the overall revenue increase.

Purchases of stock in trade declined to Rs 244.3956 crore from Rs 265.1255 crore despite the higher trading-sales figure. The change in inventories was negative Rs 47.8768 crore, compared with negative Rs 142.0956 crore a year earlier. Finance costs rose to Rs 11.0060 crore from Rs 5.1353 crore, and other expenses increased to Rs 4.7963 crore from Rs 3.4770 crore.

Why was Gamco's September-quarter profit below June-quarter profit?

Gamco recorded profit of Rs 6.0561 crore in the quarter ended September 30, 2026, below Rs 32.4337 crore in the June 2026 quarter. September-quarter revenue from operations was higher at Rs 140.5784 crore, versus Rs 113.5113 crore in June, but profit before tax and the share of associates fell to Rs 6.1280 crore from Rs 35.2894 crore.

The quarterly expense pattern changed substantially. Purchases of stock in trade were Rs 131.7529 crore in the September quarter, compared with Rs 112.6427 crore in June. Other expenses rose to Rs 3.3103 crore from Rs 1.4860 crore, while the inventory change was negative Rs 6.5235 crore, compared with negative Rs 41.3533 crore in the preceding quarter.

Against the September 2025 quarter, Gamco moved from a Rs 8.30 crore loss attributable to owners to a Rs 6.0465 crore profit attributable to owners. Sale-of-goods trading revenue rose to Rs 123.9390 crore from Rs 87.8247 crore, while net gain on fair-value changes was Rs 14.6419 crore after a Rs 4.5878 crore loss in the year-earlier quarter.

What changed in Gamco's cash flow and balance sheet?

Gamco reported net cash used in operating activities of Rs 55.0009 crore for the half year ended September 30, 2026. The cash-flow statement showed a Rs 47.8769 crore increase in inventories, a Rs 5.0178 crore increase in trade receivables and a Rs 28.1603 crore decrease in derivative liabilities, partly offset by a Rs 8.7521 crore decrease in loans and advances.

Net cash flow from financing activities was Rs 63.7063 crore, comprising borrowings availed or repaid in the same amount. Cash and cash equivalents were Rs 59.64 lakh at September 30, 2026, compared with Rs 1.0864 crore at March 31, 2026. The group also recorded Rs 7.5003 crore of investment purchases, Rs 34.35 lakh of fixed-asset purchases and Rs 1.3259 crore of capital work in progress during the half year.

Investments stood at Rs 212.6905 crore on September 30, 2026, up from Rs 183.8114 crore on March 31, while inventories rose to Rs 228.2304 crore from Rs 180.3536 crore. Property, plant and equipment increased to Rs 50.0996 crore from Rs 28.7122 crore. Intangible assets were Rs 43.3166 crore at September 30, compared with Rs 90.2440 crore at March 31.

Gamco said goodwill from its October 24, 2025 acquisition of Uma Properties & Traders Ltd had been overstated by Rs 47.0303 crore because land and building fair value had not been included in the goodwill calculation under Indian Accounting Standard 103. The adjustment was made in the September 2026 consolidated financial statements through goodwill and property, plant and equipment. Separately, its sale of the entire stake in Visco Advisory Private Limited was completed on August 3, 2026, after which that entity ceased to be a wholly owned subsidiary.

Conclusion

Gamco's first-half profit of Rs 38.4898 crore reflected higher trading sales and a rise in fair-value gains, with revenue from operations increasing by Rs 112.1082 crore year on year. The September quarter remained profitable and improved from the loss recorded a year earlier, although its Rs 6.0561 crore profit was below the Rs 32.4337 crore reported in the June quarter as purchase, inventory and other-expense movements changed.

The next disclosed event is the preferential allotment of up to 43,05,960 equity shares at Rs 50 each, aggregating to Rs 21.5298 crore. Shareholders approved the issue on September 16, 2026, Gamco received the relevant regulatory approval on October 30, 2026, and management said allotment would be completed within 15 days of receiving that approval.