Company Overview

Mukesh Babu Financial Services Limited (CIN: L65920MH1985PLC035504), an RBI-registered non-deposit taking NBFC classified as NBFC-BL, reported strong financial performance for FY 2025-26. The company operates primarily in financial services and capital markets with its subsidiary Mukesh Babu Securities Limited.

Financial Performance Highlights

Standalone Results for FY26:

  • Total Income: ₹127.31 million (41.92% increase from ₹89.99 million in FY25)
  • Profit Before Tax: ₹53.53 million (61.87% increase from ₹33.07 million)
  • Net Profit After Tax: ₹39.72 million (77.77% surge from ₹22.34 million)
  • Other Comprehensive Income: ₹152.82 million (vs ₹41.14 million)
  • Total Comprehensive Income: ₹192.55 million (203% increase from ₹63.48 million)
  • Earnings Per Share: ₹5.70 (vs ₹3.21 in FY25)

Balance Sheet Position (as of March 31, 2026):

  • Total Assets: ₹3,543.72 million
  • Investments: ₹1.69 billion including significant holdings in BSE Ltd (632,363 shares valued at ₹632.4 million), Bharat Forge (75,000 shares valued at ₹129.3 million), and various equity/preference instruments
  • Loans: ₹451.7 million comprising term loans (₹155.5 million) and loans to related parties (₹283.4 million)
  • Inventories (stock of shares): ₹2.34 billion
  • Zero non-performing assets with full provision coverage
  • CRAR ratio: 84% with Tier I CRAR at 64.13%
  • Liquidity Coverage Ratio: 26.15%

Dividend Declaration & Corporate Actions

The Board recommended a final dividend of ₹1.20 per equity share (12% on face value of ₹10) for FY26, requiring an outflow of ₹8.37 million, subject to shareholder approval at the 41st Annual General Meeting scheduled for August 12, 2026. The dividend will be paid to members on the register as of August 5, 2026.

Subsidiary Performance

Mukesh Babu Securities Limited, the company's 51.62%-owned subsidiary, reported a remarkable turnaround with net profit of ₹23.62 million compared to a net loss of ₹17.23 million in the previous year.

Regulatory Compliance & Governance

The company maintained full compliance with RBI regulations, including:

  • Statutory reserve transfer of 20% of current profit after tax
  • Provision for standard assets at 0.25%
  • Expected Credit Loss (ECL) model implementation
  • All audit reports were unqualified without adverse remarks
  • No material orders from regulators/courts impacting going concern status
  • No frauds reported under Section 143(12) of Companies Act, 2013

Related Party Transactions

Extensive related party transactions were disclosed with outstanding loans to related parties totaling ₹283.3 million. Key related parties include Ashtavinayak Infra Tech, Istaa group companies, Sagar Systech, and Rushil group companies. All transactions were conducted at arm's length with omnibus approval from the Audit Committee.

Corporate Governance & Leadership

The Board composition remained unchanged with Mr. Mukesh Babu as Chairman & Managing Director. Four Board meetings were held during the year, maintaining all required policies including Code for Insider Trading, Related Party Transactions, and Whistle Blower policies.

Capital Structure & Ownership

Paid-up Equity Share Capital remained unchanged at ₹69.68 million. Promoter holding stands at 62.86% with Mukesh Champaklal Babu holding 49.23% (3,431,600 shares) and Meena Mukesh Babu holding 13.63% (950,000 shares).

CSR Activities

The company voluntarily contributed ₹0.70 million towards school education activities through C L Babu Foundation despite having no obligation after setoff of previous year's unspent CSR amount.

Key Dates

  • 41st Annual General Meeting: August 12, 2026 at 4:00 PM via Video Conferencing
  • Book Closure: August 6, 2026 to August 12, 2026 (both days inclusive)
  • Dividend Payment: Within 30 days from AGM date (if approved)