Galaxy Bearings reported a net profit of Rs 1.49 crore for Q2 FY27, marking a turnaround from the loss reported in the year-ago quarter. Revenue grew to Rs 23.09 crore. Crucially, the company confirmed its removal from the U.S. Treasury's SDN list as of June 30, 2026, allowing it to resume normal international transactions and export activities with U.S. entities.
Galaxy Bearings Returns to Profit and Clears U.S. Sanctions
Revenue for the quarter hit Rs 23.09 crore; Net profit recovered to Rs 1.49 crore.
Reader Takeaway: Improved earnings performance coincides with critical regulatory relief, potentially unlocking global trade opportunities for the firm.
What just happened
Galaxy Bearings Ltd has reported a significant financial improvement for the quarter ended September 30, 2026. The company moved from a net loss of Rs 2.15 crore in Q2 FY26 to a net profit of Rs 1.49 crore in the current quarter. Total revenue from operations saw a robust increase to Rs 23.09 crore compared to Rs 15.10 crore in the same period last year.
Why this matters
Beyond the earnings recovery, the company announced its formal removal from the U.S. Department of Treasury’s Specially Designated Nationals and Blocked Persons (SDN) list. As of June 30, 2026, the Office of Foreign Assets Control (OFAC) has cleared the company, removing barriers to transacting with U.S. persons and the U.S. financial system. This development is expected to normalize international business operations, including export-led revenue streams.
The backstory
The company previously faced operational hurdles due to its placement on the OFAC SDN list. This designation had restricted the company's ability to engage in foreign currency transactions and international trade, impacting its financial performance in prior periods. The resolution of this legal proceeding marks a major step in restoring operational normalcy.
What changes now
With the sanctions lifted, management expects to resume standard international business operations. The balance sheet reflects total assets of Rs 154.10 crore as of September 30, 2026, up from Rs 139.53 crore at the end of March 2026. Borrowings stood at Rs 20.59 crore, reflecting a moderate increase to support capital requirements.
What to track next
Investors should monitor whether the removal of sanctions leads to an immediate uptick in export volume and if the company can sustain its current profitability margins over the coming quarters.