Company Overview
Saraswati Commercial (India) Limited, an RBI-registered NBFC-Investment and Credit Company, reported strong financial performance for FY 2025-26 with significant growth in profitability and extensive related party transactions.
Financial Performance
Standalone Results (₹ in Lakhs):
- Net Profit: ₹9,231.06 lakhs, up 73% from ₹5,341.12 lakhs in FY25
- Total Comprehensive Income: ₹13,281.80 lakhs (FY26) vs ₹19,064.33 lakhs (FY25)
- Revenue from Operations: ₹12,094.59 lakhs
- EPS: ₹842.31 (Basic and Diluted)
- Total Assets: ₹1,20,078.30 lakhs
Consolidated Results:
- Net Profit: ₹9,231.40 lakhs
- Total Assets: ₹1,21,813.50 lakhs
- Investments totaled ₹109,711.70 lakhs across various categories
Key Operational Highlights
- Capital Adequacy: Maintained strong CRAR of 80.03% (Tier I: 79.93%, Tier II: 0.10%)
- Investment Portfolio: Significant holdings in fair value through other comprehensive income (₹72,444.88 lakhs)
- Loan Book Expansion: Increased to ₹11,563.00 lakhs from ₹33.62 lakhs previous year
- Cash Flow: Net decrease in cash of ₹2,076.58 lakhs due to operating activities outflow
Related Party Transactions
Extensive network of transactions totaling ₹1,735 crore limits:
- Loans given to related parties: ₹118,616.00 lakhs
- Loans taken from related parties: ₹116,366.10 lakhs
- Interest income from related parties: ₹699.77 lakhs
- Major counterparties include Four Dimensions Securities, Singularity Holdings, Geecee Ventures, and Winro Commercial
Regulatory Compliance & Governance
- Annual Report Submission: Filed 43rd Annual Report with BSE pursuant to SEBI Listing Regulations
- AGM Scheduled: September 24, 2026 with 15 resolutions including director reappointments
- RBI Compliance: Transferred ₹1,846.21 lakhs to reserves under Section 45-IC of RBI Act
- Auditor Opinion: Unqualified opinion with adequate internal financial controls
- Corporate Governance: Full compliance with all requirements, vigil mechanism in place
Risk Management Framework
Comprehensive risk management covering:
- Credit Risk: Expected credit loss assessment using historical trends and counterparty ratings
- Liquidity Risk: Maturity profile shows ₹625.16 lakhs liabilities due within 1 year
- Market Risk: Sensitivity analysis shows 0.5% rate change affects assets by ₹62.54 lakhs
- Interest Rate Risk: Exposure through mutual funds, loans, and borrowings
Regulatory Developments
RBI Draft Proposal: August 6, 2026 discussion paper proposes restrictions on revolving credit facilities for NBFCs, which may impact the company's lending business model. Final regulations pending.
Subsidiary Operations
- Sareshwar Trading and Finance Private Limited: 60.77% ownership, minimal financial activity
- Arkaya Commercial Private Limited: 61.83% ownership, minimal contribution to operations
- Subsidiaries reported total income of ₹0.68 lakhs and profit of ₹0.10 lakhs
Capital Structure & Shareholding
- Equity Share Capital: Unchanged at ₹109.59 lakhs
- Promoter Holding: 74.88% as of March 31, 2026
- Public Holding: 25.12%
- Dematerialized Holdings: 94.03%
- No dividend declared for FY26 due to capital-intensive nature of business
Contingencies & Commitments
- Tax Disputes: ₹146.57 lakhs under dispute
- Legal Matters: ₹121.17 lakhs in various cases
- Capital Commitments: ₹7,964.82 lakhs towards AIF investments
- Fixed Deposit: ₹269.31 lakhs in escrow for stamp duty liabilities
Outlook & Strategic Focus
The company maintains strong capital position while navigating potential regulatory changes from RBI's proposed restrictions on revolving credit facilities. Continued focus on investment activities and related party lending operations, with adequate risk management frameworks in place.