GKW returns to quarterly profit as expenses fall while revenue declines

GKW Limited reported profit after tax of Rs 3.9259 crore for the quarter ended 30 September 2026, against a Rs 15.5894 crore loss a year earlier, as other expenses fell to Rs 1.6035 crore from Rs 23.0700 crore despite revenue from operations declining to Rs 7.1140 crore. The Board approved the unaudited results on 5 November 2026.

How did GKW's quarterly profit change?

GKW reported profit after tax of Rs 3.9259 crore for the September 2026 quarter, reversing a Rs 15.5894 crore loss in the quarter ended 30 September 2025. Profit before tax was Rs 5.2697 crore, compared with a pre-tax loss of Rs 13.1015 crore a year earlier, while basic and diluted earnings per share were Rs 6.58 against a loss per share of Rs 26.13.

The September-quarter result was lower than the preceding quarter. GKW recorded profit after tax of Rs 10.7827 crore in the quarter ended 30 June 2026, making the latest profit Rs 6.8568 crore lower sequentially. Profit before tax similarly declined from Rs 13.1193 crore in June to Rs 5.2697 crore in September.

Total comprehensive income was Rs 64.3693 crore in the September 2026 quarter, compared with negative Rs 19.9699 crore a year earlier and Rs 9.3462 crore in June 2026. The latest figure included Rs 60.4434 crore of other comprehensive income, net of tax, whereas profit after tax was Rs 3.9259 crore.

Why did GKW return to profit despite lower revenue?

GKW returned to profit as other expenses declined by Rs 21.4665 crore year on year, falling to Rs 1.6035 crore in the September 2026 quarter from Rs 23.0700 crore. That reduction exceeded the decline in revenue from operations, which fell by Rs 3.7555 crore from Rs 10.8695 crore a year earlier to Rs 7.1140 crore.

Total expenses were Rs 5.6525 crore, down from Rs 26.8379 crore in the September 2025 quarter. Finance costs were Rs 2.1755 crore against Rs 2.1111 crore, employee benefits expense rose to Rs 0.9489 crore from Rs 0.7185 crore, and depreciation and amortisation eased to Rs 0.9246 crore from Rs 0.9383 crore.

Other expenses were Rs 1.4406 crore in the June 2026 quarter, compared with Rs 1.6035 crore in September 2026. This means the latest quarterly other-expense figure was Rs 0.1629 crore higher sequentially, although it remained far below the Rs 23.0700 crore reported a year earlier.

Which GKW businesses saw revenue change?

GKW's warehousing revenue increased to Rs 3.5354 crore in the September 2026 quarter from Rs 3.2981 crore a year earlier, while investment and treasury revenue declined to Rs 3.5786 crore from Rs 7.5714 crore. The investment and treasury movement accounted for the decline in revenue from operations to Rs 7.1140 crore from Rs 10.8695 crore.

Sequentially, warehousing revenue was nearly unchanged at Rs 3.5354 crore, compared with Rs 3.5167 crore in the June 2026 quarter. Investment and treasury revenue fell from Rs 11.3583 crore in June to Rs 3.5786 crore in September, a reduction of Rs 7.7797 crore.

Warehousing segment result was Rs 2.2439 crore in the latest quarter, compared with Rs 2.2460 crore in June 2026 and Rs 1.9817 crore a year earlier. Investment and treasury segment result was Rs 3.3320 crore, down from Rs 11.1668 crore in June and Rs 7.8578 crore in the September 2025 quarter.

What do GKW's half-year figures show?

GKW reported profit after tax of Rs 14.7086 crore for the half-year ended 30 September 2026, compared with a Rs 1.7746 crore loss in the prior-year half-year. Profit before tax increased to Rs 18.3890 crore from Rs 3.4554 crore over the same two six-month periods.

Revenue from operations for the half-year declined to Rs 21.9890 crore from Rs 25.4269 crore, while other income declined to Rs 7.4488 crore from Rs 9.7515 crore. Other expenses fell to Rs 3.0441 crore from Rs 24.3824 crore, while finance costs increased to Rs 4.2861 crore from Rs 4.0535 crore.

Net cash from operating activities was Rs 2.1453 crore for the half-year ended 30 September 2026, compared with Rs 2.2614 crore in the prior-year period. Cash and cash equivalents at the period end were Rs 9.5171 crore, compared with Rs 6.6460 crore at the end of the prior-year half-year.

What unresolved matters did GKW disclose?

GKW disclosed that an order was awaited in its appeal over an alleged Rs 32.5615 crore short payment of stamp duty relating to certain land parcels in Bhandup, Mumbai. The company filed the appeal on 16 December 2025, and the matter was listed and heard on 9 September 2026.

The company said the Collector of Stamps, Mumbai, had sent its letter on 3 November 2025 and that the possible impact on the unaudited September 2026 results was unascertainable pending a final order. The statutory auditors drew attention to the matter in their review report but did not modify their conclusion.

GKW also restated its accounting position on a Joint Development Agreement entered into during the year ended 31 March 2025. It said no current-tax provision had been recognised for capital gains because, supported by legal opinion, it does not consider execution of the agreement and handover of possession to constitute a transfer under section 2(47) of the Income Tax Act, 1961; it said tax would be recognised when actual consideration is received.

Conclusion

GKW's return to quarterly profit reflected a substantial year-on-year reduction in other expenses, which more than offset lower revenue from operations. Warehousing revenue rose to Rs 3.5354 crore and its segment result remained near Rs 2.2439 crore, but investment and treasury revenue fell to Rs 3.5786 crore from Rs 11.3583 crore in the preceding quarter.

Next, readers should watch whether investment and treasury revenue recovers from the Rs 3.5786 crore reported for the September quarter and whether other expenses remain near Rs 1.6035 crore. The order in the Rs 32.5615 crore stamp-duty appeal is awaited, while GKW has said the timing of actual consideration under its Joint Development Agreement will determine recognition of related current tax.