Gloster Stock Jumps 6% After Revenue Increases 45% YoY; Announces 200% Dividend

Synopsis: Gloster Limited, a Kolkata-based jute goods manufacturer with over 150 years of legacy, announced its audited standalone and consolidated financial results for FY26 on May 23, 2026. The Board recommended a bumper 200% dividend Rs. 20 per share alongside a sharp jump in annual revenue, signalling strong operational recovery.

In a regulatory filing submitted on Saturday, May 23, 2026, Gloster Limited confirmed that its Board of Directors met and approved the audited standalone and consolidated financial results for the quarter and full financial year ended March 31, 2026. 

The statutory audit was conducted by M/s Singhi & Co., who issued an unmodified opinion on both standalone and consolidated financial statements, a clean bill of health that adds credibility to the reported numbers.

Shares of Gloster Limited surged over 6% in Monday’s trading session to Rs. 676.25 after touching an intraday high of Rs. 689.95. The stock opened sharply higher at Rs. 655 compared to the previous close of Rs. 635.80, as investors reacted positively to the company’s strong FY26 revenue growth and 200% dividend announcement. Trading activity remained moderate, with nearly Rs. 0.80 crore worth of shares exchanged by mid-session.

The standout headline from the filing is the Board’s recommendation of a dividend at 200%, translating to Rs. 20 per equity share of face value Rs. 10 each for FY2025-26. The dividend payout, however, remains subject to shareholder approval at the upcoming Annual General Meeting.

On a standalone basis, Gloster’s revenue from operations for the full year FY26 stood at Rs. 906.86 crore, a significant jump of approximately 45% over the previous year’s Rs. 626.68 crore. Total income for the year came in at Rs. 938.89 crore versus Rs. 673.21 crore in FY25 a 39.5% year-on-year increase.

However, the bottom line told a more cautious story. Profit before tax for FY26 was Rs. 52.20 crore, compared to Rs. 56.92 crore in FY25, a decline of roughly 8.3%. Net profit after tax stood at Rs. 38.76 crore versus Rs. 43.73 crore in the prior year. The dip was partly attributed to higher material costs and increased employee benefit expenses, which rose to Rs. 123.32 crore in FY26 from Rs. 116.99 crore. Earnings per share (basic and diluted) for FY26 were Rs. 35.42 versus Rs. 39.96 in FY25, reflecting the pressure on margins despite the revenue surge.

Despite the near-term margin pressure in its core jute operations, Gloster has also begun taking strategic steps toward cost optimisation and vertical integration. During the recent quarter, the board approved a Rs. 5 crore cash investment to acquire a 49% equity stake in a Special Purpose Vehicle (SPV) focused on the cost-efficient manufacturing and supply of high-quality jute gunny bags. The first tranche of the investment was scheduled for completion by March 31, 2026. The move signals management’s intent to strengthen backward integration, improve operational efficiency, and reduce manufacturing costs within its traditional jute business.

Consolidated Picture: Cables Segment Boosts Scale

On a consolidated basis, the picture looks dramatically different in terms of revenue scale. Consolidated revenue from operations for FY26 surged to Rs. 1,426.73 crore from Rs. 734.78 crore in FY25, nearly doubling year-on-year. This is primarily driven by the Cables & Other Electrical Products segment operated through subsidiary Fort Gloster Industries Limited, which commenced operations only in Q1 FY25.

The two operating segments, Jute Goods and Cables & Other Electrical Products, reported combined segment results (before interest and tax) of Rs. 102.34 crore for FY26. However, consolidated profit after tax stood at Rs. 18.14 crore versus a loss of Rs. 13.35 crore in FY25, marking a meaningful turnaround at the group level.

Total consolidated assets grew to Rs. 2,510.86 crore as of March 31, 2026, from Rs. 2,019.50 crore a year earlier, a 24% increase, reflecting the capital-intensive expansion in the cables business.

Corporate Developments Worth Watching

The company has filed a Scheme of Amalgamation with the National Company Law Tribunal (NCLT), Kolkata, to merge wholly owned subsidiaries Gloster Lifestyle Limited and Gloster Specialities Limited with the holding company. The scheme is currently pending NCLT approval. Additionally, a long-running trademark dispute over the “Gloster” brand involving Fort Gloster Industries, the Supreme Court, and multiple commercial courts remains unresolved, though management has stated no adjustments to financial results are required at this stage

About Gloster Limited

Gloster Limited, incorporated in 1923 and headquartered at 21, Strand Road, Kolkata, is one of India’s oldest and most respected jute manufacturing companies. With a history spanning over 150 years, the company produces a wide range of jute goods catering to domestic and international markets. Through its subsidiary Fort Gloster Industries Limited, the group has recently diversified into cables and electrical products, adding a high-growth vertical to its traditional jute-centric business.

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