Raising of Funds through Issuance of NCD
EMKAY · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
On the reaction day the stock moved 7.9 pts more than Nifty Microcap 250 and 7.8 pts more than its Stockbroking & Allied peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Emkay Global Financial Services reported audited results for FY26 ended March 2026. The company reported standalone revenue of Rs. 34,899 lakhs, up 11% from Rs. 31,532 lakhs in FY25. However, standalone profit after tax declined significantly to Rs. 1,190 lakhs from Rs. 5,891 lakhs in the previous year. The Board approved raising funds up to Rs. 100 crore through issuance of secured/unsecured redeemable Non-Convertible Debentures (NCDs) on private placement basis, subject to regulatory approvals. Additionally, borrowing limits were increased to Rs. 1,000 crore pending shareholder approval. The company also recommended a dividend of Rs. 1.50 per share (15%) subject to AGM approval. ICRA maintained the credit rating at BBB+ (Positive). The company had warrant conversions during the year where 95 lakh warrants at Rs. 239.50 per warrant were partially converted to equity shares.
The NCD issuance of up to Rs. 100 crore will increase the company's debt burden. The significant decline in net profit (down 80% YoY) despite higher revenue suggests cost pressures, which investors should monitor alongside the increased borrowing.