BSESakthi Finance LtdHighNeutral
Announced Thu, 12 Feb · 19:26 IST

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

Related Party TransactionsDebt Equity ThresholdResults View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Sakthi Finance's board approved unaudited results for Q3 and nine months ended 31 December 2025. Total income for the quarter rose to ₹5,887.31 lakhs (vs ₹5,480.59 lakhs in Q3FY25), aided by a one-time miscellaneous income of ₹406.17 lakhs. However, profit after tax fell to ₹375.07 lakhs (down 18.4% YoY) and 9M PAT declined ~3.5% to ₹1,163.14 lakhs, hurt by a sharp 145% jump in impairment on financial instruments to ₹445.07 lakhs and higher finance costs. Asset quality improved, with GNPA easing to 4.81% (from 5.07%) and NNPA to 2.25% (from 2.75%), while capital adequacy stayed healthy at 18.72%. Separately, the board cleared redemption of NCDs from Public Issues VI and VII on 29 April and 8 May 2026, approved commission of up to ₹25 lakhs or 1% of net profits to non-executive director Dr S Veluswamy (subject to postal ballot), and reappointed the Company Secretary as Chief Compliance Officer for two years.

Likely market impact

Profitability has weakened on rising credit costs even as asset quality continues to improve; investors should watch the trend in provisions and finance costs. The high debt-equity ratio of 5.87x and upcoming NCD redemptions are key points to monitor. The director commission proposal is a related-party item needing shareholder approval and is unlikely to materially impact equity value.