Financial Performance Overview

Arnold Holdings Limited reported FY26 Profit After Tax of ₹442.06 lakh, representing a 17% decline from FY25's ₹532.65 lakh, primarily due to lower dividend income and reduced unrealized gains from investments. Revenue from operations stood at ₹16,689.35 lakh (FY25: ₹19,972.57 lakh), while total revenue was ₹16,908.77 lakh. The company maintained a strong financial position with net worth of ₹6,467.95 lakh and paid-up capital of ₹2,377.50 lakh.

Business Operations and Exposure

As a Base Layer NBFC registered with RBI, the company expanded its digital lending operations through its "Tradofina" platform. Total loan exposure reached ₹9,145.48 lakh with zero NPAs across all sectors. Key exposures include:

  • Personal Loans: ₹8,350.82 lakh (91.3% of portfolio)
  • Capital Market Exposure: ₹6,036.32 lakh (direct investments ₹3,591.48 lakh + secured advances ₹2,577.52 lakh)
  • Real Estate: ₹30.29 lakh in residential mortgages
  • Industry: ₹966.50 lakh
  • Services: ₹20.89 lakh

The company maintained provisions of ₹192.73 lakh as required under both Ind AS 109 and IRACP norms.

Financial Ratios and Metrics

Key financial ratios demonstrate the company's operational efficiency:

  • Debt-Equity Ratio: 1.32 times
  • Return on Equity: 7.08% (down from 9.25% in FY25)
  • Interest Coverage Ratio: 1.89 times (down from 2.12 in FY25)
  • Current Ratio: 3.62
  • Net Profit Margin: 2.61%
  • Return on Capital Employed: 9.18%

Corporate Governance and Appointments

The company proposed several corporate actions including:

  • Auditor change from M/s. Amit Ray & Co. to M/s. S N Nanda & Co. for a 5-year term with proposed fee of ₹1,00,000 for FY26-27
  • Reappointment of Mr. Rajpradeep Mahavirprasad Agrawal as Whole-Time Director for 5 years with remuneration of ₹3,00,000 P.A.
  • Reappointment of Mrs. Gazala Mohammed Irfan Kolsawala who retires by rotation

The Board comprises 6 Directors (3 Whole-Time, 3 Independent) and held 6 meetings during FY26 with 100% attendance.

Regulatory Compliance and Disclosures

The company maintains full compliance with RBI's Scale-Based Regulation framework as a Non-Deposit taking Non-Systemically Important NBFC. No penalties were imposed by RBI or other regulators, and no material litigations affecting financial position were reported. The company noted some observations in Secretarial Audit including untimely entries in SDD software and delays in filing certain RBI returns (DNBS-02, DNBS-10, DNBS-4A, DNBS-4B).

Funding and Borrowings Structure

Total borrowings stood at ₹8,553.47 lakh primarily through term loans (86.34%), with top 2 borrowing parties constituting 77% of total borrowings. The company had no public deposits, debentures, or commercial paper outstanding.

Future Outlook and AGM Details

The company aims to strengthen its position in the financial services sector by expanding lending activities and enhancing operational efficiency. The 44th Annual General Meeting is scheduled for September 9, 2026, with electronic voting available from September 6-8, 2026.