Company Overview

Palash Securities Limited, a Core Investment Company registered with RBI, reported its FY26 annual results and significant corporate developments through regulatory filings submitted to stock exchanges pursuant to SEBI Regulation 34(1).

Financial Performance

The company demonstrated a remarkable turnaround in profitability. On a consolidated basis, Palash Securities reported Profit After Tax of ₹1,171.68 lakhs for FY26, a significant improvement from the previous year's loss of ₹1,765.19 lakhs. Standalone PAT stood at ₹236.08 lakhs. Total consolidated revenue from operations was ₹4,923.85 lakhs, while other income surged to ₹2,469.59 lakhs primarily due to the MFL deconsolidation gain.

Key Corporate Event: Morton Foods Deconsolidation

The most significant event was the loss of control over subsidiary Morton Foods Limited (MFL) on November 18, 2025. The Group's shareholding reduced from 51.37% to 44.95% after not participating in a Rights Issue, resulting in MFL transitioning from subsidiary to associate status. This triggered a gain of ₹2,413.64 lakhs recognized in other income, with MFL's assets (₹7,844.89 lakhs) and liabilities (₹5,360.42 lakhs) being derecognized from the consolidated financial statements.

Investment Portfolio and Business Segments

The Group maintains a substantial investment portfolio valued at ₹51,056.87 lakhs, comprising quoted investments (₹34,558.64 lakhs), unquoted investments (₹13,141.70 lakhs), and mutual funds (₹220.63 lakhs). Investment income generated ₹392.30 lakhs primarily from dividends and interest. Following MFL's deconsolidation, the company now operates solely in the Investing Business segment.

Corporate Governance and AGM Details

The company notified its 12th Annual General Meeting scheduled for August 5, 2026, with key agenda items including:

  • Adoption of audited standalone and consolidated financial statements
  • Re-appointment of Ms. Shalini Nopany as director
  • Appointment of M/s. Singhi & Co. as statutory auditors for a 5-year term

Management Changes

Mr. Chand Bihari Patodia ceased as Managing Director upon term completion on March 29, 2026, with Mr. Suraj Kumar Agrawal appointed as new Managing Director effective March 30, 2026 for a 3-year term subject to shareholder approval.

Subsidiary Structure

As of March 31, 2026, the company maintains four subsidiaries: Champaran Marketing Co. Ltd., Hargaon Investment & Trading Co. Ltd., OSM Investment & Trading Co. Ltd., and Hargaon Properties Ltd., all registered NBFCs primarily engaged in investment activities.

Financial Position and Ratios

The Group's total assets stood at ₹52,424.40 lakhs with investments constituting the majority. Key standalone ratios showed improvement: Current Ratio at 47.18% (from 34.21%), Net Profit Margin at 57.86%, and Return on Net Worth at 6.13%.

Regulatory Compliance and Corporate Calendar

The company confirmed compliance with all SEBI LODR regulations, RBI guidelines for CICs, and reported no material regulatory orders. Important dates include AGM on August 5, 2026, record date of July 29, 2026, and book closure from July 30 to August 5, 2026.

Auditor Transition

M/s. Agrawal Subodh & Co. retires after completing their 5-year term, with M/s. Singhi & Co. proposed as new statutory auditors for the next 5-year period starting from the conclusion of the 12th AGM.