Financial Performance – Q2 & H1FY27

Income Statement Highlights (INR Mn):

  • Revenue from Operations: Q2FY27: ₹1,013.4; Q1FY27: ₹1,028.6; Q2FY26: ₹854.5; H1FY27: ₹2,042.0; H1FY26: ₹1,646.3. This represents a 24.0% year-on-year (YoY) growth for H1.
  • EBITDA: Q2FY27: ₹79.1; Q1FY27: ₹80.0; Q2FY26: ₹89.9; H1FY27: ₹159.1; H1FY26: ₹135.3. A 17.6% YoY increase for H1.
  • EBITDA Margin (%): Q2FY27: 7.8%; Q1FY27: 7.8%; Q2FY26: 10.5%; H1FY27: 7.8%; H1FY26: 8.2%.
  • Profit Before Tax (PBT): Q2FY27: ₹52.6; Q1FY27: ₹54.5; Q2FY26: ₹56.2; H1FY27: ₹107.1; H1FY26: ₹69.3. A 54.6% YoY growth for H1.
  • PBT Margin (%): H1FY27: 5.2%, an increase of 104 basis points from H1FY26 (4.2%).
  • Reported Profit After Tax (PAT): Q2FY27: ₹39.4; Q1FY27: ₹68.5 (includes an exceptional item of ₹37.0); Q2FY26: ₹42.1; H1FY27: ₹107.8; H1FY26: ₹51.8. A 108.0% YoY increase for H1.
  • Adjusted PAT (excluding exceptional item): Q2FY27: ₹39.4; Q1FY27: ₹31.5; H1FY27: ₹70.9; H1FY26: ₹51.8. A 36.7% YoY increase for H1.
  • Reported EPS (Basic): Q2FY27: ₹0.76; H1FY27: ₹2.08; H1FY26: ₹1.94.
  • Exceptional Items: A gain of ₹37.0 Mn was recorded in Q1FY27.

Balance Sheet Highlights – H1FY27 (INR Mn):

  • Share Capital: Remained stable at ₹104.0 Mn (FY26: ₹104.0 Mn; FY25: ₹52.0 Mn).
  • Reserves & Surplus: Increased to ₹2,146.2 Mn from ₹2,046.2 Mn in FY26.
  • Total Equity: Stood at ₹2,250.2 Mn, up from ₹2,150.1 Mn in FY26.
  • Borrowings: Total borrowings were ₹810.4 Mn (Non-current: ₹244.7 Mn; Current: ₹565.7 Mn), increased from ₹609.7 Mn in FY26.
  • Total Equity & Liabilities: ₹3,424.5 Mn, up from ₹3,154.7 Mn in FY26.

Thane Land Possession Handover

A significant milestone was achieved on November 12, 2026, with the handover of possession for a land parcel to a developer.

  • Development Agreement: Signed with Fen-Kin Infinity LLP on November 24, 2025, for Plot No. E-1, Road No. 7, Wagle Industrial Estate, Thane. The leasehold land measures 13,391 sq m.
  • Consideration for GEE: The company is to receive approximately 2.9 lakh sq ft of built-up area, which is RERA-registered.
  • Potential Realization: Estimated at over ₹400 Crore over a 5-year period, based on an assumed average realization of ~₹14,000 per sq ft.
  • Use of Proceeds: The funds are intended for organic growth including capex, inorganic growth opportunities, product portfolio expansion, rewarding shareholders, and new market entry strategy.
  • Land Advantages: The commercial land is located in the heart of Thane, a declared smart city, with proximity to the Metro, the upcoming Borivali-Thane tunnel, bullet train station, and Eastern Express Highway.

Business Overview and Operational Strengths

GEE Limited is an established welding consumables business with over 65 years of expertise.

  • Product Portfolio: Includes welding electrodes, wires, and fluxes for processes like SMAW, SAW, MIG/MAG, TIG, and flux-cored wires, plus brazing products. It offers specialized, value-added products with proprietary formulations.
  • Markets & Applications: Serves domestic and international markets, with a ~50:50 B2B and B2C revenue mix. Applications span infrastructure, defence, energy, oil & gas, railways, and shipbuilding.
  • Network: Has 500+ dealers across India and exports to 20+ countries.
  • Manufacturing: Has 2 facilities with an installed capacity of ~59,000 MT. Utilisation was 57%. Employs 500+ people and has 50+ R&D professionals.

Growth Drivers and Financial Outlook

Key Growth Opportunities:

1. Expansion of specialized welding products like flux-cored wires (post-BIS approval), stainless steel electrodes, and wires.

2. Defence and shipbuilding opportunities, including DRDO and naval approvals; the shipbuilding market is projected at USD 8.0B by 2033.

3. Energy and infrastructure projects, leveraging a national infrastructure pipeline of ₹1.4T.

4. Improving manufacturing efficiency and utilisation from the current 57%.

5. Further expansion in domestic and export markets, focusing on Africa, the Middle East, and Southeast Asia.

The Indian welding consumables market was stated to be USD 1.2B in 2024 and is projected to reach USD 2.1–2.4B by 2033–35, growing at a 6–6.4% CAGR.

Management Targets:

  • Revenue CAGR of 25–30% through FY29.
  • EBITDA margin target of 13%+.
  • Increase installed capacity to 71,339 MTPA by FY27.
  • Achieve capacity utilisation of ~91% by FY29.

The company's strategy is focused on strengthening its core business, improving product mix and margins, expanding specialized offerings, and disciplined working capital and capital efficiency management.