Company Overview

Gala Precision Engineering Limited (Scrip Code: 544244, Scrip Name: GALAPREC) is a renowned and preferred manufacturer of precision components in India. The company is supported by an experienced management team and a diverse, skilled workforce, driving consistent financial growth, operational efficiency, and high levels of repeat business.

Product Portfolio and Operations

The company is a leading manufacturer of Special Fastening Solutions (SFS) including High Tensile Fasteners such as Studs, Anchor Bolts, Cross Bolts, Hex Bolts, Nuts, Gallock Wedge Lock and Grip Lock Washers, as well as Disc & Strip Springs (DSS) and Coil & Spiral Springs (CSS), comprising an extensive portfolio of 800+ SKUs.

Manufacturing Facilities:

  • Wada Plant, Near Mumbai, Maharashtra: Spread across 28,800 Sq Mtrs land area
  • Vallam Plant, Near Chennai, Tamil Nadu: Spread across 6,718 Sq Mtrs land area

The company has in-house tool design and development capacities offering both scalability and flexibility.

Customer Base and Geographic Reach

The company has a diversified customer profile with more than 175 customers, including major OEMs, Tier-1 & Channel Partners across various industries like Renewable Energy, Industrials, and Mobility. The company exports to more than 25 countries with an office in Frankfurt, Germany, and export revenues contributing to 33.7% in Q1-FY27.

Management and Board

Board of Directors:

  • Kirit Gala: Chairman & MD, BE (Mech), MMS (Marketing) from Mumbai University
  • Balkishan Jalan: Whole Time Director (Executive), Chartered Accountant-ICAI, B.com from Mumbai University, more than 25 years of industry experience
  • Satish Kotwani: Whole Time Director (Marketing), Diploma in mechanical engineering from Board of Technical Examinations, Maharashtra (1991), Diploma in marketing management from Bombay Institute of Management Studies (1996)
  • Rajendra Gogri: Non-Executive Director, Chairman & MD of listed company Aarti Industries Limited, B Tech (Chemical) from Institute of Chemical Technology
  • Snehal Shah: Independent Director, PGDM (IIM-Bangalore), BE (Electrical), Consultant with Fairwinds Asset Managers Limited
  • Neha Gada: Independent Director, Chartered Accountant-ICAI, B.com from Mumbai University, serves as Independent Director in 4 Listed Companies
  • Varsha Galvankar: Independent Director, B.com from Mumbai University, Director at Ghalla Bhansali Consultancy Private Limited, more than 31 years of professional experience
  • Sudhir Gosar: Independent Director, B.tech from IIT-Bombay, more than 33 years of professional experience

Operational Capacities and Utilization

Disc & Strip Springs (DSS):

  • Installed capacity: 225,517,000 units
  • Utilization rate: 85%
  • Revenue contribution: 49% of total revenue in FY2026

Coil & Spiral Springs (CSS):

  • Installed capacity: 20,941,200 units
  • Utilization rate: 75%
  • Revenue contribution: 17% of total revenue in FY2026

Special Fastening Solutions (SFS):

  • Wada plant installed capacity: 420,000 units
  • Wada plant capacity utilization: 78%
  • Chennai plant installed capacity: 4,600 MTPA
  • Chennai plant capacity utilization: 40%
  • Combined revenue contribution: 34% of total revenue in FY2026

The company holds a 15% market share in the domestic specialized fastener solutions (SFS) market for wind turbines.

Financial Performance

Historical Consolidated Statement of Profit & Loss (INR Mn):

| Metric | FY24 | FY25 | FY26 | Q1-FY27 |

| EBITDA | 388 | 408 | 519 | 123 |

| EBITDA Margin (%) | 19.16% | 17.16% | 16.51% | 16.31% |

| PAT before Exceptional Item | 246 | 271 | 366 | 84 |

| PAT Margin before Exceptional Item (%) | 12.15% | 11.40% | 11.64% | 11.14% |

| PAT after Exceptional Item | 223 | 268 | 355 | 82 |

| PAT Margin after Exceptional Item (%) | 11.01% | 11.27% | 11.29% | 10.88% |

| EPS (INR) (not annualized) | 21.77 | 22.56 | 27.05 | 6.25 |

Historical Consolidated Balance Sheet (INR Mn):

| Particulars | FY24 | FY25 | FY26 |

| Equity Share Capital | 101 | 127 | 128 |

| Other Equity | 947 | 2,440 | 2,801 |

| Total Equity | 1,045 | 2,563 | 2,925 |

| Total Assets | 1,887 | 3,197 | 3,745 |

| Property, Plant and Equipment | 413 | 607 | 844 |

| Inventories | 577 | 724 | 894 |

| Trade Receivables | 470 | 709 | 815 |

| Cash and Cash Equivalents | 14 | 15 | 115 |

Funds Proceeds and Deployment

The company received INR 1,212.4 Mn in monitoring account from public account and utilized INR 873.4 Mn as follows:

  • Loan repayment: INR 454.3 Mn (fully utilized)
  • Chennai CAPEX: INR 297.3 Mn utilized out of INR 370.0 Mn allocated (INR 72.7 Mn balance available)
  • Wada CAPEX: INR 110.5 Mn utilized out of INR 110.7 Mn allocated (INR 0.2 Mn balance available)
  • General Corporate Purposes: INR 11.4 Mn utilized out of INR 277.4 Mn allocated (INR 266.1 Mn balance available)

Additionally, FDs were created in HDFC Bank (INR 200.0 Mn) and Yes Bank (INR 134.8 Mn), with interest earned of INR 4.2 Mn.

Growth Strategies

The company's future growth strategies include:

  • Identifying opportunities in emerging technologies like Hydrogen Value chain/Electrolyzer, Electric Vehicles, High Speed Trains
  • Expanding product range in Fasteners & Springs to address larger market size
  • Increasing presence in exports market by hiring locals and having warehouse/logistics tie-up in Europe & USA
  • Moving up the value chain by offering advanced materials, Kitting solutions, Smart Fasteners
  • Focus on application engineering & deeper customer engagement by offering customized solutions

Industry Overview

The presentation highlights growth drivers across all product segments:

  • DSS & WLW: Equipment manufacturing, steel demand growth, urbanization, automotive and railway capex, government policies in renewable sector
  • CSS: Vehicle applications, railway upgrades, urbanization, PLI Scheme, import substitution, agricultural mechanization
  • SFS: Renewable energy expansion (95% of global power capacity growth CY21-26), infrastructure replacement, government focus on infrastructure

Investor Relations

For further details, contact Mr. Anuj Sonpal at Valorem Advisors (Tel: +91-22-3507 5100, Email: gala@valoremadvisors.com). Investor kit and meeting requests can be accessed at https://www.valoremadvisors.com/gala.

Disclaimer

The presentation contains forward-looking statements subject to risks and uncertainties including fluctuations in earnings, growth management, competition, economic conditions, talent retention, project overruns, international operations, and government policies. The company does not undertake to update forward-looking statements.