Financial Performance Overview
Sunshine Capital Limited reported a significant turnaround in FY2025-26, achieving a standalone net profit of ₹293.3 million (₹2,932.88 lakhs) compared to a loss of ₹6.8 million (₹68.41 lakhs) in the previous year. Total income stood at ₹534.08 lakhs, while total expenditure was ₹2,465.30 lakhs. The company transferred ₹45.5 million to statutory reserves under Section 45IC of the RBI Act as required for NBFCs.
Capital Structure and Corporate Actions
The company maintained a paid-up share capital of ₹5,229.2 million (5,22,91,72,000 shares of ₹1 each) and proposed a 10:1 share consolidation to be voted on at the upcoming AGM on September 22, 2026. The capital adequacy ratio remained strong at 86.66% with Tier-I capital at 86.64% of risk-weighted assets.
Investments and Asset Composition
Total investments stood at ₹7,030.0 million, primarily in unquoted equities including significant holdings in Hologram Holding Private Limited (₹1,891.0 million, 36.16% ownership) and Lavender Holdings Private Limited. Loans decreased to ₹622.6 million from ₹963.7 million year-on-year, while inventories primarily consisting of shares totaled ₹3,408.1 million.
Governance and Management Changes
The company witnessed several management changes including the resignation of three independent directors (Bhupendra Kaushik, Luv Sharma, Rekha Bhandari) and CFO Sangeeta. The board approved reappointment of Priti Jain as director and appointed M/s Parul Agrawal & Associates as Secretarial Auditor for a four-year term.
Regulatory Compliance and Audit Issues
Both statutory and secretarial auditors issued qualified opinions noting non-compliance with IND AS 109 on expected credit loss measurement, non-provision of interest on loans, and internal control deficiencies. The company faced BSE penalties totaling ₹3.77 lakhs for SEBI LODR violations and has outstanding income tax demands of ₹12.8 million for assessment years 2008-09 to 2017-18.
Operational Highlights and Related Party Transactions
The NBFC maintained its RBI registration as a Middle Layer NBFC-ND-SI with 99.87% of paid-up capital in demat form. Related party transactions included loans and advances to relatives of directors totaling ₹5.3 million. The company reported no public deposits, no whistleblower complaints, and no sexual harassment cases during the year.
Cash Flow and Financial Position
Net cash from operating activities was negative at ₹(408.13) lakhs, while investing activities generated ₹189.61 lakhs. Total assets stood at ₹77,355.24 lakhs with financial assets comprising ₹76,539.40 lakhs. Cash and cash equivalents decreased to ₹14.93 lakhs from ₹303.37 lakhs at the beginning of the year.