Financial Performance Summary
Garnet International Limited reported strong financial results for FY26 with consolidated net profit of ₹474.75 lakhs, representing a 210% increase from ₹153.46 lakhs in FY25. Standalone performance showed net profit of ₹340.64 lakhs versus ₹9.99 lakhs last year, driven primarily by net gain on fair value changes of ₹362.69 lakhs. Basic earnings per share stood at ₹2.42 compared to ₹0.78 in FY25.
Segment Performance
The company operates through two segments: Shares and Securities (primary revenue driver with ₹406.65 lakhs income) and Textiles (subsidiary Whitewall India generated ₹80.82 lakhs revenue with ₹1.72 lakhs loss). Total consolidated revenue was ₹487.47 lakhs, all derived from domestic operations.
Audit Qualifications and Regulatory Compliance
Statutory auditors issued a qualified opinion citing multiple compliance issues: non-compliance with Section 186(7) for interest-free unsecured loans of ₹966.80 lakhs to corporate entities, interest not paid on borrowings of ₹100 lakhs, and regulatory classification matters for its Type I NBFC status. Secretarial auditor noted additional non-compliances including delayed IEPF filings. The company is consulting external experts to regularize loan compliance and evaluating options including repaying borrowings or surrendering NBFC license.
Related Party Transactions and Corporate Governance
Extensive related party transactions were disclosed, including loans totaling ₹1,112.80 lakhs to entities controlled by directors (Alaukik Mines & Power: ₹786.69 lakhs, Mangal Savitri Investment: ₹194.11 lakhs, subsidiary Whitewall India: ₹257.93 lakhs). The board consists of 6 directors with Ramakant Gaggar as Managing Director seeking reappointment at the 44th AGM on September 30, 2026.
Capital Structure and Subsequent Events
The board forfeited 27 lakh unexercised convertible warrants with 25% upfront money credited to capital reserve. Paid-up equity capital remained at ₹1,963.50 lakhs (19,635,000 shares) with promoter holding at 49.70%.
Financial Position and Risk Factors
Trade receivables of ₹415.12 lakhs include ₹348.56 lakhs (84%) outstanding for more than 3 years, with ₹228.71 lakhs from parties under NCLT. Current ratio improved to 6.57 with current assets of ₹547.83 lakhs. Key risks include market exposure from investments, regulatory compliance challenges, and recovery of longstanding receivables.
Corporate Calendar
The 44th Annual General Meeting will be held on September 30, 2026, through video conferencing to adopt financial statements and reappoint director Ramakant Gaggar, with record date set for September 23, 2026.