Gokaldas Exports September-quarter profit rises fivefold

Gokaldas Exports Limited reported consolidated net profit of Rs 41.224 crore for the quarter ended September 30, 2026, about 5.1 times Rs 8.0836 crore a year earlier, as revenue from operations rose 13.05% to Rs 1,112.7954 crore. Profit before tax increased to Rs 49.499 crore from Rs 18.7231 crore.

How did Gokaldas Exports perform in the September quarter?

Gokaldas Exports increased consolidated net profit by Rs 33.1404 crore year on year in the September 2026 quarter, while revenue from operations increased by Rs 128.4418 crore from Rs 984.3536 crore. Total income rose to Rs 1,135.039 crore from Rs 1,003.316 crore, reflecting increases in operating revenue and a combined Rs 22.2429 crore of other income.

The September-quarter profit was below the preceding June 2026 quarter, when Gokaldas Exports reported net profit of Rs 44.2982 crore and revenue from operations of Rs 1,153.5137 crore. Profit before tax declined by Rs 13.3351 crore sequentially to Rs 49.499 crore, while revenue declined by Rs 40.7183 crore.

Basic earnings per share, or EPS, was Rs 5.63 in the September 2026 quarter, against Rs 1.10 a year earlier and Rs 6.05 in June 2026. The results were unaudited, reviewed by the Audit Committee and approved by the Board on November 5, 2026.

Which income and expense lines changed in the quarter?

Gokaldas Exports’ total expenses rose 10.25% year on year to Rs 1,085.54 crore in the September 2026 quarter from Rs 984.5929 crore. The increase was lower than the Rs 131.723 crore increase in total income, resulting in profit before tax rising by Rs 30.7759 crore to Rs 49.499 crore.

Cost of materials consumed increased by Rs 61.9965 crore to Rs 525.7267 crore, employee-benefit expense rose by Rs 52.2961 crore to Rs 378.2276 crore, and other expenses increased by Rs 29.2423 crore to Rs 120.6895 crore. Depreciation and amortisation rose to Rs 48.1121 crore from Rs 42.5932 crore, while finance costs increased to Rs 29.4609 crore from Rs 22.262 crore.

The company recorded a foreign-exchange gain of Rs 4.9683 crore, compared with a gain of Rs 11.0023 crore in the September 2025 quarter. Total tax expense declined to Rs 8.275 crore from Rs 10.6395 crore, comprising current tax of Rs 11.8661 crore and a deferred-tax credit of Rs 3.5911 crore.

Did Gokaldas Exports generate more operating cash in the first half?

Gokaldas Exports generated net operating cash flow of Rs 325.1082 crore in the half year ended September 30, 2026, compared with Rs 108.8223 crore in the half year ended September 30, 2025. Cash generated from operations rose to Rs 353.4268 crore from Rs 119.802 crore before net direct taxes paid of Rs 28.3186 crore.

Working-capital movements were material to the increase in cash generation during the 2026 half year. Trade receivables used Rs 135.6234 crore of cash, compared with Rs 46.645 crore a year earlier, while the increase in trade payables provided Rs 202.3331 crore, against Rs 2.7064 crore in the prior-year period.

Operating profit before working-capital changes increased to Rs 212.887 crore from Rs 160.42 crore. Lower inventories provided Rs 3.1763 crore of cash in the 2026 half year, compared with a Rs 3.9415 crore cash use a year earlier, while changes in other assets provided Rs 46.0389 crore.

Investing activities used Rs 141.2859 crore, less than Rs 215.8168 crore in the prior-year half. Purchases of property, plant and equipment, including intangible assets, capital work-in-progress and assets under development, totalled Rs 125.5981 crore, while mutual-fund purchases were Rs 65 crore and sales proceeds were Rs 45.1969 crore.

How did Gokaldas Exports’ balance sheet change by September 30?

Gokaldas Exports reported consolidated total assets of Rs 4,452.1125 crore at September 30, 2026, compared with Rs 4,354.157 crore at March 31, 2026. Total equity rose by Rs 134.8275 crore to Rs 2,295.2268 crore, including other equity of Rs 2,258.5879 crore.

Trade receivables were Rs 704.473 crore at September 30, up from Rs 601.0512 crore at March 31, while inventories were Rs 871.3582 crore, compared with Rs 874.5345 crore. Trade payables due to creditors other than micro and small enterprises increased to Rs 555.347 crore from Rs 308.9034 crore over the same period.

Cash and cash equivalents declined to Rs 31.8736 crore from Rs 135.0099 crore. The cash-flow statement reported operating cash inflow of Rs 325.1082 crore, investing cash outflow of Rs 141.2859 crore and financing cash outflow of Rs 287.4667 crore during the half year.

Aggregate reported borrowings declined by Rs 195.574 crore to Rs 781.9793 crore at September 30. Non-current borrowings declined to Rs 315.9109 crore from Rs 374.3583 crore, while current borrowings declined to Rs 466.0684 crore from Rs 603.1949 crore.

What is pending in Gokaldas Exports’ BRFL Textiles amalgamation?

Gokaldas Exports said the proposed amalgamation of BRFL Textiles Private Limited with Gokaldas Exports remained subject to balance requisite approvals as of November 5, 2026. The Board approved the scheme on August 9, 2025, and Gokaldas Exports said its equity shareholders approved it during the quarter ended September 30, 2026.

As of September 30, 2026, Gokaldas Exports held a 19% equity interest in BRFL Textiles Private Limited. The company had subscribed to optionally convertible debentures for Rs 225 crore and extended corporate guarantees of Rs 315 crore to banks on behalf of BRFL Textiles Private Limited.

The debentures have a face value of Rs 1,000 each and a cumulative coupon rate of 20.35% a year, compounded annually, according to the results notes. Gokaldas Exports said it assessed the amalgamation-related matters and concluded that no impact needed to be recorded in the September 2026 financial results.

Conclusion

Gokaldas Exports delivered a year-on-year rise in September-quarter consolidated profit to Rs 41.224 crore as revenue reached Rs 1,112.7954 crore and total expenses grew more slowly than total income. First-half operating cash flow also increased to Rs 325.1082 crore, although the cash result included a Rs 202.3331 crore increase in trade payables alongside a Rs 135.6234 crore receivables-related cash outflow.

The disclosed matter to watch is the remaining approval process for the BRFL Textiles Private Limited amalgamation. Gokaldas Exports had a 19% equity interest in BRFL Textiles Private Limited at September 30, 2026, and said the shareholder vote was complete but balance requisite approvals were still being obtained.