Company Overview
Gandhi Special Tubes Limited (BSE: 513108, NSE: GANDHITUBE) filed its Annual Report 2025-26 and explanatory statement for the 41st AGM scheduled for 12 August 2026.
Financial Performance Highlights
The company reported record financial performance for FY26 with revenue from operations of ₹19,177.02 lakhs (up 11.15% YoY) and profit after tax of ₹6,836.43 lakhs (up 16.52% YoY). Key financial ratios remained strong with operating profit margin at 44.68% and return on net worth at 21.66%. The company maintained its debt-free status and generated net cash from operating activities of ₹5,519.51 lakhs.
Dividend Declaration
The Board recommended a final dividend of 300% (₹15 per equity share) totaling ₹1,822.80 lakhs, payable to shareholders registered as of 5 August 2026. The payment will be made on or before 11 September 2026 from free reserves.
Major Corporate Action: Share Buyback
The Board approved a significant buyback proposal of up to 8,68,100 equity shares (7.14% of paid-up capital) at a maximum price of ₹900 per share, aggregating ₹78,12,90,000. The buyback will be executed through the tender offer route, with shares being extinguished post-completion. Auditors S.V. Doshi & Co. confirmed the company's solvency and compliance with regulatory requirements post-buyback.
Operational and Business Updates
Sales growth was driven by strong commercial vehicle demand (domestic sales up 12.6% YoY) and tractor segment growth (domestic sales up 23.5% YoY). The company implemented cost optimization measures, reducing power and fuel consumption by 9%, and met 69% of electricity requirements through renewable sources. Capital expenditure of ₹220 lakhs was funded entirely from internal accruals.
Corporate Governance and Compliance
The company confirmed no defaults in debt repayment or interest payments over the last three years. All related party transactions were conducted at arm's length. The AGM agenda includes re-appointment of directors Jayesh Gandhi and Manoj Gandhi, both with over 39 years of experience in manufacturing and export.
CSR and Other Initiatives
The company partnered with Akshaya Chaitanya for CSR activities, providing kitchen equipment worth ₹145 lakhs for a central kitchen facility in Mumbai. Employee attrition remained lower than industry average, with 447 employees as of year-end.
Risk Factors and Outlook
Identified risks include raw material price volatility, monsoon dependence, geopolitical risks, foreign exchange fluctuations, and competitive pressures. The company maintains adequate internal financial controls with no material weaknesses reported.