GEE first-half profit more than doubles to Rs 10.78 crore

GEE Limited reported profit for the six months ended September 30, 2026 of Rs 10.78 crore, more than double the Rs 5.15 crore reported a year earlier, as revenue from operations increased to Rs 204.20 crore. Total income reached Rs 204.85 crore and the result included a reported exceptional item of Rs 3.70 crore.

How did GEE perform in the first half?

GEE's reported profit more than doubled to Rs 10.78 crore in the six months ended September 30, 2026, from Rs 5.15 crore in the corresponding six months of 2025. Revenue from operations rose to Rs 204.20 crore from Rs 164.12 crore, while total income, including other income, increased to Rs 204.85 crore from Rs 164.68 crore.

The increase in income was accompanied by higher expenses, but profit before tax rose faster, reaching Rs 14.41 crore from Rs 6.93 crore. Profit before exceptional items and tax was Rs 10.71 crore in the latest first half, compared with Rs 6.03 crore a year earlier. Tax expense of Rs 4.25 crore then resulted in reported profit for the period of Rs 10.78 crore.

GEE reported basic earnings per share of Rs 2.08 for the six months ended September 30, 2026, compared with Rs 1.94 in the prior-year period. Diluted earnings per share were Rs 2.05, versus Rs 1.94. Paid-up equity share capital was unchanged at Rs 10.40 crore, with equity shares carrying a face value of Rs 2 each.

The September 2026 results were unaudited and were reviewed by the audit committee and approved by the board on November 12, 2026. The statutory auditor issued a limited review report dated November 12, 2026, stating that nothing had come to its attention to indicate that the financial statement was not prepared in accordance with applicable requirements.

Which costs and exceptional item affected GEE's earnings?

GEE's total expenses increased to Rs 194.14 crore in the first half from Rs 157.77 crore a year earlier, an increase of Rs 36.37 crore. Raw-material consumption was the largest listed cost at Rs 138.27 crore, compared with Rs 58.67 crore in the September 2025 quarter and forming part of the six-month expense total.

Employee benefit expense was Rs 11.01 crore in the six months ended September 30, 2026, while other expenses were Rs 23.25 crore. Finance costs amounted to Rs 3.80 crore and depreciation and amortisation expense was Rs 2.05 crore. The statement also includes purchases of stock in trade and changes in inventories within total expenses.

The reported exceptional item of Rs 3.70 crore separated profit before exceptional items and tax of Rs 10.71 crore from profit before tax of Rs 14.41 crore. GEE did not specify the nature of the exceptional item in the results statement. The reported Rs 10.78 crore profit therefore reflects both the profit before exceptional items and the separately presented item.

Current tax was Rs 3.63 crore for the latest first half, compared with Rs 1.74 crore in the prior-year period. Deferred tax was Rs 0.63 crore, compared with Rs 0.17 crore a year earlier. GEE operates in one reportable segment, manufacturing and selling welding consumables, so the filing provides no product-level or customer-level revenue split.

Why were GEE's September-quarter earnings lower than June-quarter earnings?

GEE's September 2026 quarter produced profit of Rs 3.94 crore, below the Rs 6.85 crore reported in the June 2026 quarter. Revenue from operations was Rs 101.34 crore in the September quarter, compared with Rs 102.86 crore in the June quarter, while total income declined to Rs 101.69 crore from Rs 103.17 crore.

The September-quarter profit was also below the Rs 4.21 crore reported in the quarter ended September 30, 2025. Total expenses in the latest September quarter were Rs 96.13 crore, compared with Rs 97.71 crore in the preceding June quarter. The filing gives no narrative explanation for why the profit movement differed from the decline in expenses.

Profit before exceptional items and tax was Rs 5.62 crore in the September 2026 quarter, compared with Rs 5.45 crore in the June 2026 quarter. Current tax in the September quarter was Rs 1.32 crore and deferred tax was Rs 5.24 lakh. Basic earnings per share were Rs 0.76 in September, compared with Rs 1.32 in June.

The two quarterly profits, Rs 6.85 crore in June and Rs 3.94 crore in September, together account for the first-half profit of Rs 10.78 crore. The two quarters' revenue from operations, Rs 102.86 crore and Rs 101.34 crore respectively, similarly total Rs 204.20 crore for the six-month period.

What do GEE's balance sheet and cash flow show?

GEE reported total equity of Rs 225.02 crore at September 30, 2026, up from Rs 215.01 crore at March 31, 2026. Other equity increased to Rs 214.62 crore from Rs 204.62 crore, while share capital remained Rs 10.40 crore. Non-current borrowings rose to Rs 24.47 crore from Rs 22.02 crore and current borrowings increased to Rs 56.57 crore from Rs 38.95 crore.

Trade receivables increased to Rs 65.49 crore at September 30 from Rs 55.04 crore at March 31. Inventories declined to Rs 87.24 crore from Rs 89.72 crore, while other current assets increased to Rs 28.14 crore from Rs 12.39 crore. Assets held for sale, reported at Rs 11.63 crore on March 31, were nil at September 30.

Net cash used in operating activities was Rs 12.66 crore for the six months ended September 30, 2026, compared with net cash from operating activities of Rs 8.71 crore in the corresponding period of 2025. The cash-flow statement records a Rs 10.60 crore increase in trade receivables and a Rs 21.15 crore increase in other assets, contributing to cash generated from operations of negative Rs 14.78 crore before net income tax paid of Rs 2.12 crore.

Investing activities generated net cash of Rs 8.43 crore, including Rs 15.75 crore from sale of property, plant and equipment and Rs 8.18 crore spent on property, plant and equipment. Financing activities generated Rs 10.53 crore, led by Rs 17.13 crore of net short-term borrowing proceeds and partly offset by Rs 3.72 crore of interest paid. Cash and cash equivalents stood at Rs 7.04 crore at September 30, 2026.

Conclusion

GEE's first-half results show profit rising to Rs 10.78 crore from Rs 5.15 crore as revenue from operations increased to Rs 204.20 crore from Rs 164.12 crore. The reported result included a Rs 3.70 crore exceptional item, while profit before tax increased to Rs 14.41 crore and total expenses rose to Rs 194.14 crore.

The unresolved matter to watch in later disclosures is working-capital cash conversion. GEE reported an operating cash outflow of Rs 12.66 crore despite first-half profit before tax of Rs 14.41 crore, alongside trade receivables of Rs 65.49 crore and other current assets of Rs 28.14 crore at September 30, 2026.