Gemstone Investments September profit rises to Rs 1.68 crore

Gemstone Investments Limited reported unaudited profit after tax of Rs 1.68 crore for the three months ended 30 September 2026, against Rs 16.22 lakh a year earlier, as revenue from operations reached Rs 2.68 crore. Gemstone Investments recorded profit before tax of Rs 2.25 crore in the quarter.

What drove Gemstone Investments' September-quarter profit increase?

Gemstone Investments' higher operating revenue was the main contributor to the September-quarter profit increase, with revenue from operations rising to Rs 268.08 lakh from Rs 37.68 lakh a year earlier. The company reported no other income in either the September 2026 quarter or the comparable September 2025 quarter, so total income in both periods was entirely operating revenue.

Expenses increased by less than income during the quarter. Total expenses were Rs 43.53 lakh in the three months ended 30 September 2026, compared with Rs 16.75 lakh in the year-earlier quarter. Employee benefits expense rose to Rs 13.64 lakh from Rs 5.57 lakh, finance cost increased to Rs 5.46 lakh from Rs 10,000, and depreciation, depletion and amortisation expense rose to Rs 1.56 lakh from Rs 9,000.

Gemstone Investments' other expenses were Rs 22.88 lakh, compared with Rs 10.43 lakh in the year-earlier quarter, while it reported no material-consumption, stock-purchase or inventory-change expense in either period. These cost lines left profit before tax at Rs 224.55 lakh, up from Rs 20.94 lakh, before current tax of Rs 55.16 lakh and deferred tax of Rs 1.38 lakh.

How did Gemstone Investments perform against the June quarter?

Gemstone Investments improved sequentially in the September 2026 quarter, with revenue rising to Rs 268.08 lakh from Rs 172.00 lakh in the three months ended 30 June 2026. Profit before tax increased to Rs 224.55 lakh from Rs 117.28 lakh, while profit after tax rose to Rs 168.01 lakh from Rs 87.712 lakh.

The movement in costs was mixed between the two quarters. Employee benefits expense increased by Rs 2.10 lakh to Rs 13.64 lakh and depreciation increased by Rs 1.13 lakh to Rs 1.56 lakh. Finance cost declined by Rs 52,000 to Rs 5.46 lakh, while other expenses fell by Rs 13.89 lakh to Rs 22.88 lakh from Rs 36.77 lakh in the June quarter.

Gemstone Investments recorded total tax expense of Rs 56.54 lakh in the September quarter, compared with Rs 29.566 lakh in the preceding quarter. Basic and diluted earnings per share were Rs 0.04 for the September quarter, versus Rs 0.02 each for the June quarter; the financial statement gives a face value of Re 1 per equity share.

What were Gemstone Investments' half-year results?

Gemstone Investments reported profit after tax of Rs 255.72 lakh for the six months ended 30 September 2026, compared with Rs 28.51 lakh in the corresponding six months of the previous year. Revenue from operations for the half year was Rs 440.08 lakh, compared with Rs 73.57 lakh in the prior-year six-month period.

The half-year result combined Rs 268.08 lakh of September-quarter revenue with Rs 172.00 lakh reported for the June quarter. Total expenses for the six months were Rs 98.25 lakh, against Rs 36.70 lakh a year earlier, producing profit before tax of Rs 341.83 lakh compared with Rs 36.87 lakh in the corresponding period.

Gemstone Investments' half-year current tax was Rs 84.20 lakh and deferred tax was Rs 1.91 lakh, taking total tax expense to Rs 86.11 lakh. There were no exceptional items, no profit or loss from discontinued operations and no other comprehensive income in the six-month period, so total comprehensive income was also Rs 255.72 lakh.

What does Gemstone Investments' balance sheet show?

Gemstone Investments reported total assets of Rs 128.78 crore at 30 September 2026, compared with Rs 53.40 crore at 31 March 2026. Current loans were Rs 123.58 crore at the half-year date, up from Rs 48.70 crore at the preceding financial year-end, accounting for most of the change in total assets.

Equity attributable to owners rose to Rs 126.08 crore from Rs 49.72 crore over the same period. Equity share capital was Rs 46.84 crore at 30 September, compared with Rs 7.48 crore at 31 March, while other equity was Rs 79.25 crore, up from Rs 42.25 crore.

Gemstone Investments reported current borrowings of Rs 2.55 crore at 30 September 2026, down from Rs 3.55 crore at 31 March 2026. Property, plant and equipment increased to Rs 88.25 lakh from Rs 3.14 lakh, while cash and cash equivalents were Rs 34,000, compared with Rs 1.30 lakh at the prior year-end.

Did Gemstone Investments generate operating cash in the half year?

Gemstone Investments reported net cash used in operating activities of Rs 71.84 crore for the half year ended 30 September 2026. The cash-flow statement shows operating profit before working-capital changes of Rs 3.55 crore, but an increase in loans of Rs 74.88 crore resulted in cash generated from operations of negative Rs 71.37 crore.

The company spent Rs 87.09 lakh on fixed assets in investing activities. Financing activities generated Rs 72.68 crore, including Rs 73.80 crore described as proceeds from a preferential issue of share warrants; after these movements, cash and cash equivalents ended the period at Rs 14.66 lakh, versus Rs 17.34 lakh at the start of the period.

Gemstone Investments' board approved the results on 13 November 2026. A. Raghavendra Rao & Associates issued a limited review report stating that nothing had come to its attention to suggest that the financial statements were not prepared, in all material respects, in accordance with applicable accounting standards and recognised accounting practices.

Conclusion

Gemstone Investments' September-quarter results show higher revenue and profit than both the year-earlier and immediately preceding quarters. Revenue of Rs 2.68 crore and profit after tax of Rs 1.68 crore were recorded alongside higher employee, finance and depreciation costs, while lower other expenses than in the June quarter supported the sequential increase in profit before tax.

The disclosed matters to watch are the development of the Rs 123.58 crore current-loan balance, the operating cash outflow associated principally with the increase in loans, and the use of Rs 73.80 crore in proceeds from the preferential issue of share warrants.