Financial Performance Overview
Centrum Capital Limited reported a remarkable standalone turnaround in FY26, achieving a net profit of ₹1,005.41 crore compared to a loss of ₹687.24 crore in FY25. This performance was primarily driven by exceptional gains of ₹20,620.82 lakh from the sale of subsidiary stakes, particularly the divestment of Centrum Housing Finance Limited for ₹429.77 crore. Consolidated performance showed a net loss of ₹13.82 crore, improving from ₹18.75 crore loss in FY25, with total consolidated income growing 13% to ₹4,127 crore.
Strategic Corporate Actions
The company executed significant capital restructuring through preferential issuances raising ₹349.67 crore: ₹200 crore via warrants to promoter group entity JBCG Advisory Services and ₹149.71 crore through equity shares to 48 marquee investors. The company opted for the concessional tax regime under Section 115BAA, resulting in reversal of unutilized MAT credit entitlement of ₹1,451.48 lakh. Share capital increased from ₹41.60 crore to ₹48.68 crore, with promoter holding increasing from 6.16% to 11.81%.
Subsidiary Performance & Integration
Unity Small Finance Bank, a key subsidiary, reported a net loss of ₹28.26 crore while successfully integrating PMC Bank assets. The bank maintained strong capital adequacy at 26% with improved CASA ratio of 22.5% (from 15.0%) and net NPAs of 2.07%. Centrum Wealth managed assets of ~₹40,000 crore across 17 cities, while Modulus Alternatives launched India Credit Opportunities Fund III with ₹2,000 crore target.
Related Party Transactions & Governance
The company seeks shareholder approval for inter-corporate deposit limits up to ₹200 crore between subsidiaries including Centrum Retail Services, Centrum Financial Services, Centrum Wealth, and Centrum Broking. These unsecured ICDs carry 13-15% interest rates with 1-4 year tenures for working capital and corporate purposes. The 48th AGM is scheduled for August 12, 2026 with 10 resolutions including director appointments and RPT approvals.
Financial Position & Ratios
Standalone debt equity ratio improved significantly to 0.92 from 2.47, while interest coverage ratio strengthened to 2.21 times from 0.42 times. Current ratio improved to 3.03 times from 0.52 times, and return on capital employed reached 21.14% from 4.21%. Total borrowings reduced to ₹15.75 crore from ₹20.45 crore, reflecting successful deleveraging efforts.
Regulatory Compliance & Disclosure
The company complied with SEBI Listing Regulations, Companies Act 2013, and RBI guidelines. It surrendered its merchant banker registration and prepared financial statements under Division II of Schedule III. All related party transactions were conducted at arm's length with no defaults or NPA classifications among group entities. The annual report includes comprehensive financial statements, management discussion, and corporate governance reports.