Financial Performance Overview
Sakthi Finance Limited reported improved financial results for FY 2025-26 with net profit rising 3.6% to ₹172.49 crore from ₹166.52 crore in the previous year. Total income stood at ₹210.90 crore, while profit before tax was ₹234.01 crore. The company maintained a strong capital adequacy ratio of 20.45% (Tier I: 16.73%, Tier II: 3.72%), well above regulatory requirements.
Asset Quality and Portfolio
Asset quality showed improvement with gross NPAs declining to ₹534.10 crore (4.76% of loans) from ₹609.50 crore (4.92%) in FY25. Net NPAs stood at ₹246.03 crore (2.25% of loans) with provision coverage improving to 53.92%. The loan portfolio (net) was ₹1,073.10 crore with total assets reaching ₹1,433.52 crore as of March 31, 2026.
Capital Raising and Corporate Actions
The company raised significant capital during the year including ₹250 crore through public NCD issues (Public Issue-10: ₹100 crore, Public Issue-11: ₹150 crore) and ₹7.66 crore via private preference share placement. The Board recommended an equity dividend of ₹0.80 per share (8%) amounting to ₹517.65 lakh and confirmed a 9% preference dividend of ₹235.34 lakh. A proposal for ₹50 crore preference share issuance is on the AGM agenda.
69th Annual General Meeting
Sakthi Finance convenes its 69th AGM virtually on 26 September 2026 with key agenda items including adoption of FY26 financial statements, dividend declarations, reappointment of Dr. Mahalingam Manickam as Director, and approval of special remuneration for Dr. Sundaraswamy Veluswamy. Remote e-voting through CDSL platform will be available from September 23-25, 2026, with record date set for September 19, 2026.
Corporate Governance and Compliance
The company, classified as NBFC-Middle Layer under RBI regulations, maintained strong governance standards with 9 Board meetings during the year. Members approved commission payment to Non-Executive Director Dr. Sundaraswamy Veluswamy via postal ballot on March 20, 2026. The company complied with SEBI Listing Regulations and RBI requirements, with credit ratings maintained at [ICRA]BBB(Stable) for various instruments.
Operational and Regulatory Context
Employee strength stood at 659 permanent employees with median remuneration increasing 13.85% YoY. The company faced contingent liabilities including income tax disputes of ₹217.16 lakh and service tax disputes of ₹2,082.34 lakh. Related party transactions totaled ₹47.63 crore for expenses and ₹58.61 crore for income. Dividend distribution will be electronic-only as per SEBI mandate with applicable TDS provisions.