GHCL Limited Regulatory Response and Q1 FY27 Financial Results

Regulatory Communication Details

Date of Communication: September 10, 2026

Nature of Query: The National Stock Exchange of India Limited raised queries regarding the Outcome of Board Meeting and financial results submitted on August 1, 2026 for the quarter ended June 30, 2026. Specifically, the exchange sought clarification on two matters: why consolidated financial results were not submitted and whether machine-readable/legible copies of financial results were submitted.

Company's Clarification on Trading Volume and Financial Results

GHCL Limited provided detailed responses to both exchange queries:

1. Consolidated Financial Results Not Submitted: The company clarified that Dan River Properties LLC, a non-operational wholly owned subsidiary, was voluntarily closed effective February 18, 2026. Consequently, GHCL Limited no longer has any subsidiary companies. Necessary intimation was already filed via communication dated February 20, 2026. Accordingly, effective from Financial Year 2026-27 (commencing April 1, 2026), GHCL Limited operates strictly as a standalone entity and is no longer required to prepare or submit consolidated financial results.

2. Machine Readable Form/Legible Copy: The company confirmed that the financial results submitted on August 1, 2026 were in machine-readable, searchable, and editable format. A copy was re-attached for reference and record.

Regulatory Compliance Reference

The financial results submission was made pursuant to Regulation 30 (read with Part A of Schedule III) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The 218th board meeting was held on August 1, 2026, commencing at 11:30 AM and concluding at 1:15 PM.

Financial Results Clarification Details

Standalone Financial Results for Quarter Ended June 30, 2026:

Income Statement Highlights (₹ in crores):

  • Revenue from operations: 774.26 (vs. 795.87 in Q1 FY26, -3% YoY)
  • Other income: 23.75 (vs. 27.32 in Q1 FY26)
  • Total income: 798.01 (vs. 823.19 in Q1 FY26)
  • Total expenses: 594.10 (vs. 627.96 in Q1 FY26)
  • Profit before exceptional items and tax: 203.91 (vs. 195.23 in Q1 FY26)
  • Exceptional items (gain): (53.62)
  • Profit before tax: 257.53 (vs. 195.23 in Q1 FY26)
  • Total tax expenses: 66.35 (vs. 50.45 in Q1 FY26)
  • Net Profit for the period: 191.18 (vs. 144.78 in Q1 FY26, +32% YoY)
  • Total Comprehensive income: 192.21 (vs. 145.35 in Q1 FY26)

Exceptional Items Explanation:

The exceptional gain of ₹53.62 crore relates to the settlement with a share broker regarding GHCL Employees Stock Option Trust ('ESOS Trust') matters. The ESOS Trust owned 20,46,195 equity shares of GHCL Limited, of which 15,79,922 shares were illegally sold by a share broker. After litigation, the ESOS Trust entered into a settlement receiving 7,45,966 equity shares of GHCL Limited and 8,56,466 equity shares of GHCL Textiles Limited. The loan previously written off (₹53.62 crores) was written back through exceptional gain, with a corresponding current tax charge of ₹13.49 crores. The outstanding loan recoverable from ESOS Trust stood at ₹55.90 crores after this adjustment.

Key Metrics:

  • Earnings per share (Basic): ₹21.04 (vs. ₹15.17 in Q1 FY26)
  • Earnings per share (Diluted): ₹21.04 (vs. ₹15.14 in Q1 FY26)
  • Paid up equity share capital: ₹92.13 crores

Auditor Review:

Deloitte Haskins & Sells LLP conducted a limited review and expressed an unmodified conclusion, noting nothing came to their attention that causes them to believe the statement contains any material misstatement.

Additional Notes:

  • During the quarter, 1,96,500 equity shares of ₹10 each were issued and allotted, and 9,000 stock options lapsed under GHCL Employees Stock Option Scheme - 2015
  • The company is engaged in "Chemical" activity with only one reportable operating segment as per IND AS 108
  • The Supreme Court ruling on mineral rights tax (July 2024) may have future implications, but no demand has been raised on the company till date

Topic Tags: Regulatory Response, Financial Results Clarification, Subsidiary Dissolution, ESOS Trust Settlement, Exceptional Gain, Compliance