Financial Analysis Summary: G.M. Breweries Limited
For the Quarter and Half Year ended September 30, 2025
1. Auditor’s Note
- Type: Limited Review Report by V.P. Mehta & Co., Chartered Accountants
- Opinion:
- No qualifications, concerns, or issues reported.
- The review was conducted as per applicable standards and nothing came to the auditor’s attention indicating material misstatements.
- Conclusion: Standard clean limited review report with no modifications or qualifications.
2. Financial Performance
| Metric | Q2 FY26 (Jul-Sep 2025) | Q1 FY26 (Apr-Jun 2025) | Q2 FY25 (Jul-Sep 2024) | H1 FY26 (Apr-Sep 2025) | H1 FY25 (Apr-Sep 2024) | FY25 (Apr 24-Mar 25) |
|---|---|---|---|---|---|---|
| Revenue from Operations (Rs. Lakhs) | 71,785 | 63,801 | 59,578 | 1,35,586 | 1,19,637 | 2,50,369 |
| Other Income | 303 | 513 | 303 | 816 | 666 | 4,810 |
| Total Income | 72,088 | 64,314 | 59,881 | 1,36,402 | 1,20,303 | 2,55,179 |
| Cost of Materials Consumed | 12,428 | 12,111 | 10,730 | 24,539 | 21,696 | 47,102 |
| Changes in Inventories | 17 | (58) | 236 | (41) | 326 | (51) |
| Employee Benefits Expenses | 312 | 277 | 259 | 589 | 519 | 1,199 |
| Excise Duty, VAT & TCS | 53,733 | 47,515 | 44,678 | 1,01,248 | 89,497 | 1,86,712 |
| Finance Cost | 1 | 27 | 8 | 28 | 34 | 58 |
| Depreciation & Amortisation | 120 | 120 | 150 | 240 | 300 | 518 |
| Other Expenditure | 814 | 866 | 923 | 1,680 | 1,702 | 3,645 |
| Total Expenses | 67,425 | 60,858 | 56,984 | 1,28,283 | 1,14,074 | 2,39,183 |
| Operating Profit before Tax | 4,663 | 3,456 | 2,897 | 8,119 | 6,229 | 15,996 |
| Tax Expenses (Current & Deferred) | 1,174 | 870 | 730 | 2,044 | 1,568 | 3,092 |
| Net Profit | 3,489 | 2,586 | 2,167 | 6,075 | 4,661 | 12,904 |
| EPS (Rs. per share of Rs.10) | 15.27 | 11.32 | 9.48 | 26.59 | 20.40 | 56.48 |
Margins (approximate):
- Operating Profit Margin (PBT / Revenue from Operations):
- Q2 FY26: 6.5%
- Q1 FY26: 5.4%
- Q2 FY25: 4.9%
- H1 FY26: 6.0%
- H1 FY25: 5.2%
- FY25: 6.4%
- Net Profit Margin (Net Profit / Revenue from Operations):
- Q2 FY26: 4.9%
- Q1 FY26: 4.1%
- Q2 FY25: 3.6%
- H1 FY26: 4.5%
- H1 FY25: 3.9%
- FY25: 5.2%
3. Detailed Notes / Management Commentary
- The results have been reviewed by the Audit Committee and approved by the Board on October 9, 2025.
- Provision for taxation includes current tax only.
- The company operates in a single business segment: Country Liquor.
- The company has incorporated a wholly owned subsidiary to explore real estate opportunities with an initial capital investment of Rs. 1 lakh; the subsidiary has not commenced operations yet.
- Previous period figures have been regrouped where necessary for comparability.
- No changes in accounting policies or material adjustments reported.
- No exceptional items reported during the period.
- No mention of NPAs, slippages, or financial services-specific metrics as the company is in manufacturing/retail liquor business.
4. Segment Information
- Single segment operation: Country Liquor.
- No geographical or product segment breakdown provided.
5. Capex, Projects, and Corporate Activity
- Capital Expenditure:
- Property, Plant & Equipment stable at Rs. 5,004.52 lakhs as of Sep 30, 2025 (vs Rs. 5,006.46 lakhs as of Mar 31, 2025).
- Investment Property increased from Rs. 24,111.57 lakhs to Rs. 24,711.20 lakhs.
- Subsidiary: Wholly owned subsidiary formed for real estate business with Rs. 1 lakh capital invested; no operations yet.
- No impairments, write-downs, or provisions reported.
- No acquisitions, disposals, mergers, or restructuring efforts disclosed.
- Cash Flow Highlights (H1 FY26 vs H1 FY25):
- Net cash from operating activities decreased to Rs. 4,002.86 lakhs from Rs. 10,481.44 lakhs.
- Net cash used in investing activities increased to Rs. (2,311.02) lakhs from Rs. (9,017.05) lakhs (less outflow).
- Net cash used in financing activities increased slightly to Rs. (1,590.08) lakhs from Rs. (1,313.12) lakhs.
- Overall net increase in cash and cash equivalents was Rs. 101.76 lakhs vs Rs. 151.27 lakhs in prior year.
6. Standalone vs Consolidated
- Only standalone financials provided and reviewed.
- No consolidated results included or referenced.
Additional Information:
Balance Sheet Highlights (Standalone):
| Particulars | Sep 30, 2025 (Rs. Lakhs) | Mar 31, 2025 (Rs. Lakhs) |
|---|---|---|
| Total Assets | 1,10,096.07 | 1,09,756.08 |
| Non-Current Assets | 94,258.90 | 91,733.79 |
| Current Assets | 15,837.17 | 18,022.29 |
| Total Equity | 98,370.19 | 93,856.49 |
| Non-Current Liabilities | 150.96 | 150.96 |
| Current Liabilities | 11,574.92 | 15,748.63 |
- Equity increased by Rs. 4,513.70 lakhs mainly due to retained earnings from profits.
- Current liabilities decreased significantly by Rs. 4,173.71 lakhs, mainly due to reduction in other current financial liabilities (from Rs. 5,654.98 lakhs to Rs. 122.31 lakhs).
- Trade payables stable around Rs. 1,875 lakhs.
Related Party Transactions (RPT) Summary for H1 FY26
| Related Party | Nature of Transaction | Value (Rs. Lakhs) | Remarks |
|---|---|---|---|
| Jimmy Almeida Kashap (CMD) | Remuneration | 180.00 | Approved by Audit Committee |
| Jyoti Almeida Kashyap (ED) | Remuneration | 132.00 | Approved |
| Other Key Management Personnel | Remuneration | 100.25 (aggregate) | Approved |
| Jimmy Almeida Kashap | Lease Rentals | 283.56 | Approved |
| Jimmy Almeida Kashap | Dividend | 1,058.27 | Approved |
| Jyoti Almeida Kashyap | Dividend | 34.10 | Approved |
| Almeida Holdings Pvt Ltd (Subsidiary) | Dividend | 183.02 | Approved |
- Total value of related party transactions approved: Rs. 1,971.20 lakhs
- Total value of transactions during the period: Rs. 1,623.29 lakhs
Summary & Key Takeaways
- Financial Performance: Strong revenue growth YoY and QoQ with improving profitability margins. Net profit for Q2 FY26 at Rs. 3,489 lakhs, up 61% YoY and 35% QoQ.
- Profitability: Operating profit margin improved to 6.5% in Q2 FY26 from 4.9% in Q2 FY25. Net profit margin also improved.
- Balance Sheet: Stable asset base with increased equity and reduced current liabilities, indicating improved liquidity and financial health.
- Cash Flows: Operating cash flows declined significantly compared to prior year, mainly due to higher indirect taxes paid and working capital changes. Investing cash outflows reduced, financing outflows slightly increased.
- Segment: Single segment operation (Country Liquor).
- Corporate Activity: Formation of a wholly owned subsidiary for real estate business with minimal capital invested; no operations yet.
- Auditor’s Report: Clean limited review with no qualifications or concerns.
- Related Party Transactions: Significant related party transactions mainly in remuneration, lease rentals, and dividends, all approved by audit committee.
This analysis is based solely on the information provided in the filing and is suitable for use by the investment analysis team for further decision-making.