Outcome of the Board Meeting of Challani Capital Limited held on 14.08.2025
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
The board approved the unaudited financial results for Q1 FY26 (quarter ended 30 June 2025) along with a clean limited review report from RSM & Associates. Profit before tax for the quarter stood at Rs. 44.39 lakhs. Total assets grew to Rs. 1,001.74 lakhs (from Rs. 886.10 lakhs), driven mainly by a ~21% rise in loans to Rs. 685.60 lakhs. However, cash and cash equivalents fell sharply from Rs. 91.68 lakhs to Rs. 35.27 lakhs, and operating cash flow turned negative at -Rs. 77.09 lakhs. Other equity remains deeply negative at -Rs. 703.59 lakhs against equity capital of Rs. 1,500 lakhs, indicating large accumulated losses. Mr. P. Ramachandran resigned as CFO & Company Secretary and was replaced the same day by Ms. Shuba Lakshmanan.
Same-day exit and entry of the CFO/Company Secretary is a governance red flag worth monitoring. The negative operating cash flow and the deeply negative other equity (-Rs. 703.59 lakhs) suggest the NBFC is burning cash and carrying significant accumulated losses, which could weigh on the stock despite loan-book growth.