BSESakthi Finance LtdHighNeutral
Announced Thu, 12 Feb · 19:36 IST

Approval of Unaudited Financial Results for the quarter and nine months ended 31 December 2025 and other items

Debt Equity ThresholdEbitda Margin CompressionResults View source PDF

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Awaiting price reaction for this filing.

AI summary

Sakthi Finance Ltd, a Coimbatore-based NBFC, reported Q3 FY26 standalone profit after tax of Rs 375.07 lakhs, down from Rs 459.71 lakhs in Q3 FY25 (an ~18% YoY decline). Nine-month PAT came in at Rs 1,163.14 lakhs versus Rs 1,205.76 lakhs in the prior-year period. Net worth rose to Rs 20,524 lakhs and capital adequacy ratio improved to 18.72% (from 17.47%). Asset quality also improved with GNPA falling to 4.81% (from 5.20%) and NNPA to 2.25% (from 2.75%). The statutory auditor (P N Raghavendra Rao & Co) issued an unmodified limited review report, and the company confirmed no defaults on loans/debt securities. The company raised Rs 150 crore via NCD Public Issue-XI in August 2025, with proceeds fully utilised for stated lending/financing objects with no deviation. Security cover on listed NCDs stood at 1.10x as required.

Likely market impact

The quarter saw a sharp YoY drop in profit despite better asset quality and stronger capital position, which may weigh on sentiment. High leverage (debt-equity ~5.9x typical for NBFCs) and thin margins remain key risks; existing shareholders should watch for sustained recovery in earnings and any further deterioration in spreads.