Gamco Ltd (GAMCO) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, you've been connected to Gamco Limited Q2 FY '27 earnings conference call. Please stay connected, the call will begin shortly. Ladies and gentlemen, you've been connected to Gamco Limited Q2 FY '27 earnings conference call. Please stay connected, the call will begin shortly.
Moderator: Ladies and gentlemen, good day and welcome to the Gamco Limited Q2 FY '27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star, then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Ms. Sakshi Shah from Go India Advisors. Thank you, and over to you, ma'am.
Sakshi Shah (Go India Advisors): Thank you. Good afternoon everyone and welcome to Q2 FY '27 earnings call of Gamco Limited. We have on the call Mr. Rajiv Goenka, Managing Director, Mr. Gopal Roy, CFO of the company. We must remind you that discussion on today's call may include certain forward-looking statements and must, therefore, be viewed in conjunction with the risks that the company faces. May I now request the management to take us through the business outlook and financials, subsequent to which we will open the floor for Q&A. Thank you and over to you, Rajiv, sir.
Rajiv Goenka (Gamco Ltd): Thank you. Good afternoon, everyone and a very warm welcome to Gamco Limited's first ever earnings conference call for the quarter and the half year ended 30th September 2026. We are delighted to host this call and we appreciate you taking the time to join us today. Thank you for being here. Gamco was incorporated in January 1983 as Wisecotrade Associates, a non-deposit-taking NBFC built around listed equity investing, trading and secured le- lending. When our promoter group took charge of the company in '22, we began with a simple belief that capital used with patience and conviction should build value that lasts. Our tagline, Let's Grow, was not created merely to sound good. It reflects what we want with this company, what we want for this company and what we stand for. In our business, markets can lift a result in 1 year and take it away in the next. Growth for us means value that compounds across all kinds of business cycles. That belief has guided every decision we have taken since. We have seen stock markets rise and fall, interest rates move in both directions, and the shape of the Indian economy change throughout. Through all of it, one question has stayed with us. How do we build a company whose value does not depend on what the stock market does on a given day or how's the current economy of the nation performing? Since taking control in '22
Rajiv Goenka (Gamco Ltd): Here we amalgamated a few subsidiaries to simplify the group structure. In 2024, we started acquiring land in Calcutta and we acquired a development potential of 12.5 lakh sq ft. We've entered warehousing space banking on the expertise of the group, executed a 5:1 stock split, and rebranded as Gamco Limited. In 2025, we acquired a 96% stake in one of its new subsidiaries called Uma Property, adding a prime land parcel in Alipore area. And promoter group also increased its promoter holding to 72%. This year we again worked under some mergers and merged our subsidiaries compliantly into Gamco. We also sold one of our warehousing assets, namely Visco Advisory, to a large global institutional fund for 15.8 Cr, which gave us a return of 185 158 times over of our investment in three years. We recently acquired a 33.33% stake in Blisara Resorts, a luxury hospitality project in Port Blair, Andaman. We are a company that has changed shape while holding onto same discipline of finding value and backing it with conviction. Each of these steps came from recognizing where India was heading and where a capital could do the most good. We are still on that journey. And we know that building real assets takes time, patience and the right partners. Today Gamco has four verticals. Equity investment remains our foundation and our treasury. We hold a quoted equity investment of around 230 Crores, which also inc includes stakes in new age companies such as Swiggy, TrucksUp, and Drivers4Me. In real estate, we also hold a 9.7% stake in a 212-acre township in Lucknow called 1OSR, which is valued at roughly 1800 Cr, where 1,206 units have been completed and 1,750 are under development. We invested at around 19.4 Crores in that for 9.7% stake, which is now revalued at 153 Cr, an unrealized gain of around 134 Crores. In Calcutta, within the next 1 to 2 years we'll be launching 13.5 lakh sq ft of proposed residential development. The locations of these land parcels are prominently in Alipore area and Jessore Road area through our subsidiaries. The Alipore land parcels we are expecting to have a 250 Crores revenue. And on our Jessore Road project, with through our joint venture, Hiliker Real Estate, we're expecting a revenue of 1100 Crores over the next five years. In logistics, we we've been acquiring a huge amount of land parcel in Dankuni, Delhi Road with a development potential of 40 lakh sq ft and a capex of around 600 Crores with a target rental yields of 8 to 10%. Our group has done this before, where we have built and developed a 63-acre logistic park called Nanak Logistics, where our anchor tenant is Amazon, who has taken a lease of 6.25 lakh sq ft, spread across 20 acres. In hospitality, as mentioned earlier, through our acquisition of Blisara Resorts, we are developing an 11-acre sea-facing cliff at Kodiaghat, Port Blair, which has all approvals, including coastal region clearance, already in place. We are planning a 140- key upper upscale hotel with a master plan by architect Alexis Dornier. These numbers represent more than scale. We they represent land secured, partners chosen carefully, and international operators, and a business model that is steadily moving from market linked gains towards asset-backed income. For us, the message is clear: the future of Gamco cannot depend on a single segment. It will depend on how well we turn the capital and judgment built in our equity businesses into homes, warehouses, and hotels that earn steady, asset-backed income. Against this back backdrop, I am pleased with the way Gamco has performed. In the first half of FY27, our consolidated revenue
Rajiv Goenka (Gamco Ltd): crores, already about 84% of our revenue for the whole financial year '26. EBITDA was 52.9 crore and net profit was 38.5 crores, almost six times the 6.5 crore we earned in the first half of the last year. In the second quarter, revenue grew by 61.7% to 140.6 crore, and we returned to profit compared with a loss a year ago, although profit was lower than in an exceptionally strong first quarter we had. Our net worth grew 24% in six months to 206.6 crore, and because it grew faster than our borrowings, it helped lower it helped improve our debt to equity ratio also, which is now one 1.6 times. These numbers matter to us, but so does the quality of the progress behind them. We have funded our growth through borrowings and have been recycling capital from the sale of our risk advisory, and we have kept building real-asset businesses even as the environment remained demanding. Our CFO will take you through the financial performance in detail. Thank you. Now, I'll hand it over to our CFO Mr. Gopal Roy.
Gopal Roy (Gamco Ltd): Thank you, sir. Afternoon, everyone. It is a pleasure to speak with you. I will take you through all the numbers I discussed are consolidated unless I say otherwise. I will take you through the numbers, but I would also like to explain what sits behind them, where the growth is coming from, how we are funding our expansion, and how we are thinking about the quality of our earnings. Let me start with the second quarter. Revenue from operation was 141 crores, up 41% from comparative last quarters FY '26 crore. That one is that was Rs 87 crores. and up 24% from 114 crores in June quarter one. As a large part of our business is investing in quoted shares, unquoted shares, pre-IPO shares, and new-age, high-growth business. Total expenses for the quarter were 129 crores against 70 73 crores in June quarter one and 94 crores a year ago. EBITDA was 12 crores and EBITDA margin of 9% compared with EBITDA loss of Rs 7 crores in Q2 FY '26 and EBITDA of 41 crores in Q1 June quarter. Finance cost was Rs 6 crores against 5 crores in June quarter one and 5 crores a year ago, reflecting the borrowing that fund our expansion into real estate, warehousing, and hospitality sector. Profit after tax was Rs 6 crores compared with a loss of Rs 8 crores a year ago and profit of Rs 32 crores in June Q1. The PAT margin for the quarter was 4%. For the first half as a whole, revenue from operation was 254 crores. Total income was 255 crores and total expense were 202 crores. EBITDA was 53 3 crores, a margin of 21%. Beyond the headline growth, one measure we track closely is leverage. Borrowings were 327 crores and our net worth grew faster than our debts. Our debt-to-equity ratio improved to about 1.6x from 1.7x.
Gopal Roy (Gamco Ltd): To sum up, H1 FY 27 has been a period of strong growth and a return to profitability of Gamco. While we have continued to invest in the business that will shape our next phase, we remain conscious of capital discipline, leverage, and the quality of our earnings. Thank you. I now request the moderator to open the floor for the questions. Thank you.
Moderator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Aditya Gupta from EJ Capital. Please proceed.
Aditya Gupta (EJ Capital): Yeah, good afternoon. Thank you for the opportunity. Sir, a couple of questions. One is how do you plan to expand into factoring, lease financing and security backed lending? Just wanted to know how does these fit alongside your real estate business? Like what makes us well placed to offer these services?
Rajiv Goenka (Gamco Ltd): Can you repeat, how do we expand in which sector?
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