GKW Ltd Posts ₹1,381.48 Lakh PAT in Q1FY26, EPS Jumps to ₹23.15 on Investment Gains; Shares Rally 9%

Mumbai, 31 July 2025: GKW Limited (NSE: GKWLIMITED) has reported a substantial rise in profitability for the quarter ended 30 June 2025 (Q1FY26), with net profit surging to ₹1,381.48 lakh, compared to ₹226.00 lakh in the corresponding quarter last year. The performance was fuelled by higher investment returns and improved operational revenues, resulting in an earnings per share (EPS) of ₹23.15, a sharp rise from ₹3.79 in Q1FY25.

GKW Q1FY26 Income Climbs to ₹2,144.20 Lakh as Treasury and Core Revenues Improve

In Q1FY26, GKW Limited reported total income of ₹2,144.20 lakh, a notable jump from ₹1,019.60 lakh in Q1FY25 and ₹849.39 lakh in Q4FY25. This growth was supported by an increase in both core and non-core income streams. Revenue from operations came in at ₹1,455.74 lakh, up from ₹969.36 lakh in Q1FY25 and ₹722.22 lakh in Q4FY25. Meanwhile, other income, primarily from treasury activities and investments, surged to ₹688.46 lakh, up sharply from ₹50.24 lakh a year ago.

Q1FY26 Expenses Remain Controlled at ₹488.51 Lakh; PBT Rises Over 375% to ₹1,655.69 Lakh

The company maintained tight control over its spending. Total expenses stood at ₹488.51 lakh in Q1FY26, slightly lower than ₹537.91 lakh in Q4FY25 and significantly lower than ₹671.31 lakh in Q1FY25. Employee benefits expenses were ₹71.51 lakh, while finance costs increased to ₹194.24 lakh due to debt-related outflows. Depreciation and amortisation stood at ₹91.52 lakh, and other expenses were ₹131.24 lakh. As a result, profit before tax (PBT) for the quarter came in at ₹1,655.69 lakh, a significant rise from ₹348.29 lakh in Q1FY25 and ₹311.48 lakh in Q4FY25.

Net Profit Soars to ₹1,381.48 Lakh in Q1FY26, Up from ₹226.00 Lakh in Q1FY25

Following the higher PBT, profit after tax (PAT) rose steeply to ₹1,381.48 lakh, compared to ₹226.00 lakh in Q1FY25 and ₹380.46 lakh in Q4FY25. The company paid ₹287.30 lakh as current tax and recorded a deferred tax credit of ₹13.09 lakh.

Other Comprehensive Income in Q1FY26 Stands at ₹3,521.96 Lakh, Boosted by Mark-to-Market Equity Gains

GKW also reported a strong recovery in its Other Comprehensive Income (OCI). In Q1FY26, the net OCI stood at ₹3,521.96 lakh, driven by mark-to-market gains of ₹3,530.00 lakh on equity instruments. There were minor adjustments for remeasurements of defined benefit plans at ₹(11.35) lakh, partially offset by a tax credit of ₹3.31 lakh. The company did not report any revaluation of freehold land during this quarter, unlike in Q4FY25 when it had a one-time revaluation gain of ₹7,074.42 lakh.

Q1FY26 Total Comprehensive Income Rises to ₹4,903.44 Lakh, Highlighting Strong Investment-Led Growth

The total comprehensive income for the quarter stood at ₹4,903.44 lakh, marking a significant improvement over the ₹(1,687.30) lakh in Q1FY25 and ₹2,545.59 lakh in Q4FY25. This growth reaffirms the impact of GKW’s strategic focus on treasury gains and capital management. The company’s paid-up equity share capital remained at ₹596.65 lakh, and the EPS (basic and diluted) came in at ₹23.15, compared to ₹3.79 in Q1FY25 and ₹6.38 in Q4FY25.

GKW Ltd Shares Jump 8.94% to ₹1,969 on Q1FY26 Results; Stock Hits Intraday High of ₹2,168.80

Following the strong Q1 earnings, GKW shares surged 8.94%, ending the trading session at ₹1,969.00 on 31 July 2025, up ₹161.60 from the previous close. The stock opened at ₹1,761.10, touched a high of ₹2,168.80, and a low of ₹1,755.80 during the session. GKW now commands a market capitalisation of ₹1,168.9 crore, although it trades far below its 52-week high of ₹4,149.90. The stock’s recent rally reflects renewed investor confidence following a sharp improvement in earnings and treasury performance.

Key Financial Metrics Reveal Mixed Trends: Strong Profit Growth But Weak Overall Fundamentals Persist

While GKW posted impressive profit growth in Q1FY26, underlying metrics present a more complex picture. The market capitalisation stands at ₹1,168.9 crore, but the price-to-earnings (P/E) ratio remains negative at -63.3, indicating historical losses over the trailing twelve months (TTM). The PEG ratio is healthy at 0.3, suggesting undervaluation relative to earnings growth. The price-to-book ratio remains low at 0.5, reflecting a discount valuation.

Institutional holdings stayed unchanged at 4.11%. However, revenue growth declined 8% year-on-year, and operating revenue growth on a TTM basis fell 15.5%. Despite this, net profit growth for the quarter soared 198%, indicating a treasury-driven turnaround. Still, on a TTM basis, net profit remains down 233.3%. Operating profit margin (OPM) for the quarter was strong at 72.7%, although the OPM TTM is -30.5%. The company scored 3 on the Piotroski Score, indicating weak financial health. Return ratios such as ROE and RoA remain in the red at -0.7% and -0.6%, respectively.

About GKW Limited: Diversified Legacy Player in Warehousing and Treasury Investments

GKW Limited, listed on the NSE, is based in Howrah, West Bengal and operates primarily in warehousing and investment & treasury services. With a longstanding presence in the industrial infrastructure space, the company has shifted its focus in recent years to capital allocation, investment management, and asset utilisation. Its performance in Q1FY26 underscores the growing contribution of its non-core investment income towards overall profitability.

REF:https://nsearchives.nseindia.com/corporate/GKWLIMITED_31072025130156_Results_31072025.pdf

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