Gloster Ltd Q2FY26 – When a 100-Year-Old Jute Company Goes Full Desi Industrial Drama Mode: 325% Profit Jump, 3 Auditors, and 2 Subsidiaries Later…

1. At a Glance

Gloster Ltd — the granddaddy of India’s jute industry — has suddenly remembered what growth looks like. In Q2FY26, this century-old jute legend posted sales of ₹360 crore and a PAT of ₹7.67 crore, marking a jaw-dropping 325% YoY surge in profit and a 152% jump in sales. The stock trades at ₹602 with a market cap of ₹644 crore, P/E of 70.2, ROCE of 1.55%, and ROE of -1.31% — basically, valuation of a tech startup but returns of a slow-moving mill in Howrah.

But don’t be fooled — this is no sleepy mill story. Between launching new jute mills, revamping cable plants, and swapping PwC for Singhi & Co. as auditors, Gloster has had more drama than a Bengali daily soap. Oh, and did we mention the ₹1,153 crore power cable contract its subsidiary bagged in May 2025? Because nothing says “eco-friendly jute” like a full-blown electrical expansion.

With a book value of ₹988, dividend yield of 3.32%, and debt-to-equity of 0.70, Gloster sits between “value buy” and “capital-heavy midlife crisis.” The only question is — can this old tiger of jute pull off an industrial reboot before the new capex chews through its cash faster than a Durga Puja bhog queue?

2. Introduction

If heritage had a factory, it would look like Gloster Ltd — born in 1923, surviving world wars, liberalization, and GST. But FY26? That’s Gloster’s glow-up year. The company that once only made jute sacks for sugar factories is now dabbling in lifestyle bags, laminated fabrics, and — wait for it — industrial power cables through subsidiaries.

Who knew a jute player could pivot into cables faster than startups pivot into AI?

And let’s not ignore the sheer madness of its numbers. Sales jumped 152% this quarter, as if someone found the missing jute magic potion. PAT surged 325%, the kind of turnaround that makes you suspiciously whisper, “Yeh kaise hua bhai?”

But underneath the noise, Gloster is quietly executing one of the most ambitious transformations in the jute sector — expanding production by 130 tons/day, building a ₹300 crore integrated jute mill (because one mill is never enough), and pouring ₹550 crore into a cable manufacturing arm that could electrify their earnings — or short-circuit them.

And if you thought governance was boring — PwC just resigned, replaced by Singhi & Co., because even auditors couldn’t handle this plot twist.

So buckle up — Gloster’s not just weaving jute anymore. It’s weaving a full-blown industrial comeback story.

3. Business Model – WTF Do They Even Do?

Let’s break this down for every investor who still thinks “jute” is something your grandma stored rice in.

Gloster Ltd makes and exports jute, cotton, and blended fiber products — basically turning plant fiber into money. Its catalog ranges from humble Hessian cloth and sacking to fancy geo-textiles, fire-retardant fabrics, and even eco-friendly shopping bags under “Gloster Lifestyle.”

And just when you thought that’s it — they also make industrial cables