What caused the sharp drop in net profit?

Net profit declined by 64% due to a mix of lower revenue and a ₹0.52 crore one-time exceptional charge for labour code compliance.

Are these results a surprise?

No. The decline was expected following earlier quarterly disclosures, as the market typically prices in annual results before the formal filing.

Earnings · Plastic Products · Micro cap

Gujarat Craft Industries profit slips 64% on rising labour costs

Annual results confirm a decline in revenue and margins as a nano-cap firm grapples with regulatory compliance charges.

— 3 earlier stories on Gujarat Craft Industries Ltd. →

GUJCRAFT By Tipsheet Editorial 21 May 2026 · 7:06 PM IST Verify on BSE · NSE

Mkt cap₹45.95 cr

P/E47.32×

ROE4.23%

Debt / eq.0.82

Div yld0.54%

₹0.97 cr Annual net profit for FY26, a 64% decline from the prior year.

What's new

Revenue dropped 9.3% to ₹184.06 cr for FY26.
Net profit fell to ₹0.97 cr after a ₹0.52 cr exceptional charge.
The one-time cost stems from new labour code compliance.

Why this matters

The sharp profit drop reflects both core margin pressure and the rising cost of compliance. For a company with a market cap of ₹51 cr, these results confirm a thinning margin profile that was already expected.

What we're watching

Whether margins recover once the one-time compliance costs settle.
Volume growth prospects given the 9.3% revenue decline.
Liquidity in the stock for a ₹51 cr nano-cap company.

The full read

Gujarat Craft Industries ended FY26 with a revenue of ₹184.06 crore, a 9.3% contraction compared to the previous year. Profitability fell 64% to ₹0.97 crore. The company attributed part of this margin squeeze to an exceptional charge of ₹0.52 crore for labour code compliance costs. At a market capitalization of ₹51 crore, the firm is a nano-cap entity where regulatory filings serve as backward-looking confirmation. These results track with earlier quarterly guidance, and the market had already adjusted for this performance. There is no new directional change here. The numbers show the impact of rising operational overheads on a shrinking topline.

Questions answered

What caused the sharp drop in net profit?: Net profit declined by 64% due to a mix of lower revenue and a ₹0.52 crore one-time exceptional charge for labour code compliance.
Are these results a surprise?: No. The decline was expected following earlier quarterly disclosures, as the market typically prices in annual results before the formal filing.

Mentioned: Gujarat Craft Industries · FY26 Results

Primary source BSE · NSE · Tijori

An independent reading of the company's own disclosure — the primary filing above is the final word.

Company snapshot

Gujarat Craft Industries Ltd.

Chemicals

₹46 cr

P/E 47.02×

Latest quarter · Mar 2026

Sales₹42 cr

Net profit−₹0 cr

Op. margin+6.6%

EPS−₹0.08

Strength & growth

Debt / equity0.82×

Current ratio1.38×

Sales CAGR+4.8%

EPS CAGR−2.7%

Story so far

All notes on GUJCRAFT →

21 May 2026 · 7:06 PM IST Gujarat Craft Industries profit slips 64% on rising labour costs
47d ago Gujarat Craft's CFO of seven years quits immediately. No replacement named.
61d ago Gujarat Craft Industries' annual results confirm profit drop
61d ago Gujarat Craft profit drops 64% as revenue slips 9%