Acuite has consolidated the business and financial risk profiles of Gloster Limited (Gloster), Gloster Lifestyle Limited (GLL), Gloster Specialities Limited (GSL), Gloster Nuvo Limited (GNL), Network Industries Limited (NIL) and Fort Gloster Industries Limited (FGIL). The consolidation is in view of GLL, GSL, NIL, GNL and FGIL being wholly owned subsidiaries of GL and provides financial support to its subsidiaries in terms of intercorporate deposits. GL has extended corporate guarantees for the loans availed by GNL and FGIL.

Experienced Management
Gloster Limited has an operational record of around hundred years as the company is operational since 1923. In 1954, Kolkata based Bangur family acquired the company. The group caters to both domestic and overseas markets. The company has three major product segments namely Hessian & sacking, Yarn, and diversified jute products. The group has wide product profile which caters to various industries such as FMCG, Agricultural products, Fashion Textile etc. The current management has more than six decades of experience in the business which helps them to bring in vast experience in strategy, planning, corporate management and finance. Acuite believes that track record of operations and experienced managements will help the company in long run.

Improvement in scale of operations during FY26

The Group witnessed a significant improvement in its scale of operations, with revenue increased by around 93% to Rs.1,426.73 Cr. in FY26 from Rs.734.78 Cr. in FY25. The growth momentum continued in Q1FY27, with the Group reporting revenue of Rs.427.39 Cr. as against Rs.305.63 Cr. in Q1FY26, registering a growth of around 40%. The improvement in scale was primarily supported by higher sales volumes and improved realisations in the jute business along with stabilisation and ramp-up of Phase-I operations at GNL, and part execution of the electrification project by FGIL which will be stabilized by FY28.
GL expanded its presence across newer domestic customers, mainly in Gujarat, Rajasthan and Maharashtra, which supported higher sales volumes, while improved price realisations further aided revenue growth. Export growth, however, remained subdued owing to the economic slowdown in Europe and the impact of US tariffs on discretionary consumption. To mitigate geographical concentration and demand-related risks, the management is focusing on further diversifying its export presence across newer markets, including Africa, Latin America, Japan and East Asia. FGIL witnessed an improvement in revenue, supported by approximately 30% execution of the electrification project. However, the company is yet to achieve break-even as operations continue to be in the ramp-up phase with full stabilisation envisaged by FY28.
The improvement in scale translated into better operating profitability, with the Group's EBITDA margin improved to 10.66% in FY26 from 6.80% in FY25, supported by improved operating leverage and better absorption of fixed costs following the stabilisation of newly commissioned capacities. Consequently, PAT margin improved to 1.27% in FY26 from (1.82%) in FY25, notwithstanding higher interest and depreciation expenses associated with increased working capital requirements and debt-funded capex. Further, the Group is gradually diversifying its product portfolio towards higher value-added products which supports profitability over the medium term. Acuite believes that the scale of operations will improve over the medium term supported by sustained capacity utilisation at GNL, continued growth in GL’s operations and gradual ramp-up and stabilisation of FGIL’s operations.

Intensive Working Capital cycle
The group’s working capital cycle remained high during FY26, though continued to remain intensive, as reflected in GCA days of 259 days as on March 31, 2026, compared with 316 days as on March 31, 2025. Inventory days improved to 144 days in FY26 from 164 days in FY25, despite significant volatility in raw jute prices, which increased sharply during the year. The Group generally maintains raw material inventory of around one to two months. However, following the sharp correction in raw jute prices during August-September 2026, inventory holding was temporarily reduced to around 15 days, with stocking subsequently resumed ahead of the festive season.
The working capital requirements are further increased by FGIL’s industrial cable business, which has an inherently elongated working capital cycle. Debtor days increased to 77 days in FY26 from 66 days in FY25, primarily due to the longer receivable cycle in this business that is realised within six to eight months as compared with around 15-18 days in the jute business for government sale.
 Against this, creditor days increased to 80 days in FY26 from 64 days in FY25. Acuite believes that the working capital cycle is expected to remain intensive over the medium term.

Moderate financial risk profile
The financial risk profile of the Group remained moderate, marked by a steady net worth of Rs.889.65 Cr. as on March 31, 2026, as against Rs.862.51 Cr. as on March 31, 2025, supported by accretion to reserves. The Group’s total debt, however, increased to Rs.959.20 Cr. in FY26 from Rs.579.47 Cr. in FY25, primarily on account of debt availed towards capex undertaken at FGIL and Phase-I of GNL, along with increased working capital requirements. Consequently, the gearing moderated to 1.08 times as on March 31, 2026 from 0.67 times as on March 31, 2025. The debt protection metrics also moderated, with the interest coverage ratio and DSCR at 2.19 times and 1.74 times, respectively, in FY26, as against 2.45 times and 2.06 times, respectively, in FY25. The moderation was primarily attributable to higher interest costs and increased debt repayment obligations. Going forward, the Group is expected to undertake additional debt towards the Phase-II expansion at GNL, while working capital borrowings are also expected to increase with the ramp-up of operations at FGIL. Acuite believes that the Group’s financial risk profile is likely to remain at similar levels over the medium term, given the debt funded capex plans which remains key monitorable.

Sustained improvement in scale of operations and profitability, marked by EBITDA margin above 11% on a sustained basis.
Successful ramp-up of FGIL's cable operations and timely completion/stabilization of GNL Phase II, resulting in higher cash accruals without material cost overruns.
Improvement in working capital cycle

Significant moderation in operating performance, particularly EBITDA margin falling below 8% on a sustained basis.
Higher-than-expected debt-funded capex or working-capital borrowings resulting in Debt/EBITDA exceeding 7.00x or DSCR falling below 1.20x.
Elongation of working capital cycle