GFLLIMITED - GFL

📊 NSE: GFLLIMITED 🏢 Finance & Investments 📅 Last Updated: 12/13/2025 22:20

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: 'Investments and allied activities'. Standalone revenue for H1 FY26 was INR 1.84 Cr, representing a 10.84% growth compared to INR 1.66 Cr in H1 FY25. This growth was driven by a 9.65% increase in fees and commission income (INR 1.25 Cr vs INR 1.14 Cr) and a 13.46% increase in net gains on fair value changes (INR 0.59 Cr vs INR 0.52 Cr).

Geographic Revenue Split

Not specifically disclosed in available documents, though the company is registered in Mumbai, India, and its primary associates (Inox Wind and Inox Leisure) operate within the Indian market.

Profitability Margins

Standalone Net Profit Margin for H1 FY26 was 48.91% (INR 0.90 Cr profit on INR 1.84 Cr revenue). This is a significant recovery from H1 FY25, which saw a net loss of INR 34.77 Cr due to a one-time deferred tax charge. Standalone Operating Profit Margin (before working capital changes) was 29.89% in H1 FY26, slightly down from 34.34% in H1 FY25.

EBITDA Margin

Operating profit before working capital changes for H1 FY26 was INR 0.55 Cr, yielding a margin of 29.89% on total revenue. This represents a slight decline from the 34.34% margin (INR 0.57 Cr) recorded in H1 FY25, primarily due to a 21.88% increase in employee benefit expenses (INR 0.39 Cr vs INR 0.32 Cr).

Capital Expenditure

Standalone capital expenditure is minimal; the company spent INR 0.77 Lakhs on property, plant, and equipment in FY25 and INR 0 in H1 FY26. The company primarily functions as an investment holding entity.

Credit Rating & Borrowing

The Group's credit profile is described as sustained by substantial cash accrual and healthy debt protection metrics. The standalone entity is described as 'almost debt free', with no interest expenses reported in the quarterly results.

⚙️ Operational Drivers

Raw Materials

Not applicable for an investment holding company. However, the broader group consumes materials for wind turbine manufacturing (fiberglass, steel) and chemicals.

Capacity Expansion

Not applicable for the standalone investment business. The company's value is tied to the capacity of its associates, Inox Wind and Inox Leisure.

Raw Material Costs

Not applicable for the standalone entity. Total standalone expenses for H1 FY26 were INR 0.70 Cr, up 22.81% YoY from INR 0.57 Cr.

Manufacturing Efficiency

Not applicable for the standalone entity. Group efficiency is driven by the operating performance of the wind turbine and chemical businesses.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

The company's growth strategy is centered on the performance and consolidation of its two major listed associates: Inox Leisure Limited (cinema exhibition) and Inox Wind Limited (wind energy). Growth is achieved through the appreciation of these investments and fees from investment product distribution. The stock currently trades at a deep discount of 0.25 times its book value, suggesting potential value unlocking if associate performance improves.

Products & Services

Investment holding services and distribution of investment products.

Brand Portfolio

Inox Leisure, Inox Wind.

Market Share & Ranking

Not disclosed for the holding company; however, its associates are major players in the Indian cinema exhibition and wind turbine manufacturing sectors.

Strategic Alliances

Strategic holdings in Inox Leisure Limited and Inox Wind Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward consolidation in the cinema sector and increased capacity in renewable energy (wind). The company's positioning as a holding entity allows it to benefit from these macro shifts without direct operational exposure.

Competitive Landscape

The company competes with other financial holding companies and investment firms. Its associates compete with major cinema chains (like PVR) and wind turbine OEMs (like Suzlon).

Competitive Moat

The company's moat is derived from its significant stakes in established brands like Inox. This advantage is sustainable as long as the underlying businesses maintain their market leadership in cinema and wind energy.

Macro Economic Sensitivity

Highly sensitive to Indian fiscal policy and capital gains taxation. The 2024 tax rate hike on long-term capital gains directly reduced the company's book value through deferred tax remeasurement.

Consumer Behavior

Demand for cinema exhibition is highly dependent on content quality and movie-going trends, which indirectly affects GFL's investment valuation.

⚖️ Regulatory & Governance

Industry Regulations

The company complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. It maintains internal financial controls as verified by auditors Patankar & Associates.

Environmental Compliance

Not disclosed for the standalone entity; associate Inox Wind is subject to renewable energy regulations.

Taxation Policy Impact

The company is subject to Indian corporate tax and capital gains tax. The Finance (No. 2) Act, 2024, resulted in a remeasurement of deferred tax liabilities, causing a charge of INR 33.86 Cr on a consolidated basis.

Legal Contingencies

The company reports INR 0 in pending litigations that would impact its financial position as of March 31, 2025.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the volatility in the market value of its investments (FVTPL), which fluctuated by INR 0.59 Cr in H1 FY26. Another risk is the potential for further changes in tax laws affecting capital gains.