Company Overview

Gala Precision Engineering Limited is a manufacturer of precision components in India, supported by an experienced management team and skilled workforce. The company manufactures 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.

Customer Base and Geographic Presence

The company has a diversified customer profile with more than 175 customers, including major OEMs, Tier-1 & Channel Partners across industries like Renewable Energy, Industrials, and Mobility. The company exports to more than 25 countries with an office in Frankfurt, Germany, and export revenues contributed 35.5% in FY26.

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 facilities are complemented by in-house tool design and development capacities.

Product Segments and Capacity Utilization

Disc & Strip Springs (DSS) including Wedge Lock Washers (WLW):

  • Installed capacity: 225,517,000 units
  • Capacity utilization: 85%
  • Revenue contribution: 49% of total revenue in FY2026
  • Applications: Renewables (yaw brakes, thrust bearing mechanism, electrolyzer), Industrial (transmission lines, dampening spring, elevator safety brakes), Mobility (couplers and brakes)

Coil and Spiral Springs (CSS):

  • Installed capacity: 20,941,200 units
  • Capacity utilization: 75%
  • Revenue contribution: 17% of total revenue in FY2026
  • Applications: Industrial (actuators, control valves, off-highway vehicles), Mobility (transmission, brakes, seating, automobiles, commercial vehicles, railways)

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 revenue in FY2026
  • The company holds a 15% market share in the domestic specialized fastener solutions (SFS) market for wind turbines.

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 (IIT-Bombay), more than 33 years of professional experience

Financial Performance (Consolidated)

Revenue from Operations:

  • FY23: INR 1,654 Mn
  • FY24: INR 2,026 Mn
  • FY25: INR 2,377 Mn
  • FY26: INR 3,147 Mn

EBITDA and Margins:

  • FY23: INR 274 Mn (16.56% margin)
  • FY24: INR 388 Mn (19.16% margin)
  • FY25: INR 408 Mn (17.16% margin)
  • FY26: INR 519 Mn (16.51% margin)

PAT before Exceptional Items and Margins:

  • FY23: INR 144 Mn (8.70% margin)
  • FY24: INR 246 Mn (12.15% margin)
  • FY25: INR 271 Mn (11.40% margin)
  • FY26: INR 366 Mn (11.64% margin)

PAT after Exceptional Items:

  • FY23: INR 242 Mn
  • FY24: INR 223 Mn
  • FY25: INR 268 Mn
  • FY26: INR 355 Mn

EPS (INR) (not annualized):

  • FY23: 23.56
  • FY24: 21.77
  • FY25: 22.56
  • FY26: 27.05

Balance Sheet Highlights (Consolidated)

Equity Share Capital:

  • FY23: INR 25 Mn
  • FY24: INR 101 Mn
  • FY25: INR 127 Mn
  • FY26: INR 128 Mn

Other Equity:

  • FY23: INR 811 Mn
  • FY24: INR 947 Mn
  • FY25: INR 2,440 Mn
  • FY26: INR 2,801 Mn

Total Borrowings (Non-current + Current):

  • FY23: INR 586 Mn
  • FY24: INR 550 Mn
  • FY25: INR 231 Mn
  • FY26: INR 365 Mn

Property, Plant and Equipment:

  • FY23: INR 382 Mn
  • FY24: INR 413 Mn
  • FY25: INR 607 Mn
  • FY26: INR 844 Mn

Inventories:

  • FY23: INR 558 Mn
  • FY24: INR 577 Mn
  • FY25: INR 724 Mn
  • FY26: INR 894 Mn

Trade Receivables:

  • FY23: INR 300 Mn
  • FY24: INR 470 Mn
  • FY25: INR 709 Mn
  • FY26: INR 815 Mn

Cash and Cash Equivalents:

  • FY23: INR 5 Mn
  • FY24: INR 14 Mn
  • FY25: INR 15 Mn
  • FY26: INR 115 Mn

Funds Proceeds and Deployment

The company received INR 1,212.4 Mn in monitoring account from public account. Total utilization breakdown:

  • Loan repayment: INR 454.3 Mn (fully utilized)
  • Chennai CAPEX: INR 284.3 Mn utilized out of INR 370.0 Mn allocated (INR 85.8 Mn balance available)
  • Wada CAPEX: INR 93.4 Mn utilized out of INR 110.7 Mn allocated (INR 17.3 Mn balance available)
  • General Corporate Purposes: INR 9.2 Mn utilized out of INR 277.4 Mn allocated (INR 268.1 Mn balance available)

Total utilized: INR 841.2 Mn with balance of INR 371.2 Mn available.

Additionally, FDs were created in HDFC Bank (INR 200.0 Mn) and Yes Bank (INR 219.7 Mn), with interest earned of INR 2.6 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 for each product segment:

  • DSS & WLW: Equipment manufacturing, steel demand from urbanization, passenger vehicle consumption, railway capex, government policies in renewable sector
  • CSS: Vehicle suspensions and components, Indian railway upgradation, rapid urbanization, PLI Scheme, agricultural mechanization
  • SFS: Renewable energy capacity growth, infrastructure replacement, government focus on infrastructure and mining

Disclaimer

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

Investor Relations Contact

Mr. Anuj Sonpal, Valorem Advisors

Tel: +91-22-3507 5100

Investor Kit-link: https://www.valoremadvisors.com/gala