Outcome of Board Meeting for approval of financial results for the quarter and year ended on 31st March 2025
Awaiting price reaction for this filing.
The Board of Mega Fin (India) approved audited financial results for Q4 and full year ended March 31, 2025. Total income for FY25 stood at ₹29.94 lakhs vs ₹27.09 lakhs in FY24, a modest ~10% rise. Net profit jumped sharply to ₹23.08 lakhs (FY25) from ₹12.69 lakhs (FY24), with EPS improving to ₹0.28 from ₹0.16. However, other equity remains deeply negative at (₹669.11 lakhs) against paid-up capital of ₹817.55 lakhs. The auditor (Maheshwari & Co.) issued an unqualified opinion but flagged an Emphasis of Matter on serious concerns: the company's activity is at a standstill, it has substantial accumulated losses, and it has eroded the minimum net worth required to operate as an NBFC. Unsecured loans, trade payables and TDS balances also remain unreconciled.
Despite the headline profit growth, this is a deeply distressed NBFC — the auditor explicitly warns about going concern viability and erosion of NBFC-mandated net worth. Shareholders face material risk; the stock is likely to remain under pressure and regulatory action as an NBFC cannot continue without the required minimum net worth.