GAMCO H1 profit rises to Rs 38.75 crore as Q2 eases

GAMCO LIMITED (formerly Visco Trade Associates Limited) reported standalone profit after tax of Rs 38.75 crore for the half year ended September 30, 2026, up from Rs 6.76 crore a year earlier, although its September-quarter profit fell to Rs 6.05 crore from Rs 32.70 crore in the June quarter.

How did GAMCO perform in the September 2026 quarter?

GAMCO reported standalone total income of Rs 137.87 crore for the quarter ended September 30, 2026, compared with Rs 110.97 crore in the quarter ended June 30, 2026 and Rs 67.86 crore in the September 2025 quarter. Profit before tax was Rs 6.09 crore, versus Rs 35.42 crore in June and a pre-tax loss of Rs 9.37 crore a year earlier.

Profit after tax was Rs 6.05 crore in the September 2026 quarter, compared with Rs 32.70 crore in the preceding quarter and a loss of Rs 7.75 crore in the September 2025 quarter. Basic and diluted earnings per share, which are not annualised for quarterly periods, were Rs 1.12, against Rs 6.05 in June 2026 and a loss per share of Rs 1.43 a year earlier.

The sequential movement in profit reflected expenses rising faster than income. Total expenses increased to Rs 131.78 crore in September from Rs 75.55 crore in June, while the inventory movement was a Rs 5.71 crore reduction in September, compared with a Rs 40.22 crore reduction in the preceding quarter. Other expenses also rose to Rs 3.19 crore from Rs 1.28 crore.

What drove GAMCO's higher first-half profit?

GAMCO's standalone profit after tax increased to Rs 38.75 crore for the half year ended September 30, 2026 from Rs 6.76 crore in the corresponding half of 2025. Total income rose to Rs 248.84 crore from Rs 120.06 crore, and profit before tax increased to Rs 41.51 crore from Rs 9.70 crore.

Revenue from operations was Rs 248.36 crore in the 2026 half year, against Rs 119.74 crore in the prior-year half. Sales of securities rose to Rs 223.28 crore from Rs 98.74 crore, while net gains on fair-value changes in investments were Rs 21.35 crore, compared with Rs 16.67 crore.

The first-half comparison also shows changed expense movements. Purchases of securities were Rs 237.20 crore in the 2026 half, close to Rs 233.58 crore a year earlier, but the inventory reduction was Rs 45.92 crore, versus Rs 133.44 crore in the prior-year period. Finance costs increased to Rs 10.74 crore from Rs 6.36 crore, while total tax expense was Rs 2.76 crore against Rs 2.94 crore.

Why did GAMCO's profit decline sequentially despite higher income?

GAMCO's disclosed net profit margin was 4.39% in the September 2026 quarter, down from 29.47% in the June 2026 quarter. The margin was above the negative 11.42% reported in the September 2025 quarter, when GAMCO recorded a standalone loss after tax of Rs 7.75 crore.

The company recorded a Rs 14.64 crore net gain on fair-value changes in investments in September, compared with Rs 6.71 crore in June. However, the smaller inventory reduction, together with higher total expenses of Rs 131.78 crore, coincided with the fall in profit after tax from Rs 32.70 crore to Rs 6.05 crore.

Sales of securities increased to Rs 121.01 crore in September from Rs 102.26 crore in June, while purchases increased to Rs 128.33 crore from Rs 108.87 crore. Income from derivatives declined to Rs 72.69 lakh from Rs 1.26 crore, whereas dividend income rose to Rs 1.02 crore from Rs 29.16 lakh.

What do GAMCO's balance sheet and cash-flow disclosures show?

GAMCO reported investments of Rs 303.26 crore at September 30, 2026, compared with Rs 271.69 crore at March 31, 2026. Inventories increased to Rs 190.84 crore from Rs 144.69 crore, trade receivables rose to Rs 8.23 crore from Rs 3.22 crore, and loans declined to Rs 4.75 crore from Rs 9.47 crore.

Borrowings stood at Rs 282.31 crore at September 30, compared with Rs 263.49 crore at March 31. Total equity rose to Rs 207.76 crore from Rs 126.35 crore, including other equity of Rs 196.95 crore against Rs 115.54 crore. GAMCO disclosed a debt-equity ratio of 1.36 at September 30, 2026, versus 2.32 at the March 2026 year-end.

Cash and cash equivalents were Rs 15.25 lakh at September 30, 2026, down from Rs 56.32 lakh at March 31, 2026. In the half-year cash-flow statement, the company reported Rs 23.20 crore invested in shares, a Rs 45.92 crore increase in inventories and a Rs 28.16 crore decrease in derivative liabilities.

What corporate actions and reporting scope should readers note?

GAMCO completed the acquisition of a 33.33% stake, comprising 7,800 equity shares, in Blissara Resorts Private Limited during the quarter for Rs 23.29 crore. The board approved the transaction on May 21, 2026, and the consolidated auditor's report identifies Blissara Resorts as an associate.

The company received regulatory approval on October 30, 2026 for a preferential issue of up to 43,05,960 equity shares to non-promoters at Rs 50 per share, aggregating to Rs 21.53 crore. Shareholders approved the proposal on September 16, 2026, and GAMCO said allotment would be completed within the prescribed 15-day period following receipt of the relevant approval.

The supplied results provide detailed standalone statements, while the consolidated auditor's report identifies five subsidiaries and eight associates without presenting a consolidated income statement. That report says one subsidiary had revenue of Rs 2.52 crore and profit after tax of Rs 4.29 lakh in the September quarter, while GAMCO's share of loss from eight associates was Rs 1.42 lakh.

Conclusion

GAMCO's standalone half-year result improved substantially from the prior-year period, with profit after tax reaching Rs 38.75 crore as total income rose to Rs 248.84 crore. The sequential comparison is different: September-quarter income rose, but higher expenses and a smaller inventory reduction accompanied a decline in quarterly profit to Rs 6.05 crore.

The next disclosed event is completion of the Rs 21.53 crore preferential allotment within the prescribed period after the October 30, 2026 regulatory approval. Subsequent results can also show the financial effect of the Rs 23.29 crore Blissara Resorts investment and changes in borrowings of Rs 282.31 crore, investments of Rs 303.26 crore and inventories of Rs 190.84 crore reported at September 30, 2026.