SONALBSESonal Mercantile LtdHighNeutral
Announced Fri, 14 Nov · 21:35 IST

Board Meeting to consider and approved the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2025 and other business.

Ebitda Margin CompressionDebt Equity ThresholdNegative Operating CashflowResults View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Sonal Mercantile Ltd, an RBI-registered NBFC, announced its Q2 and H1 FY26 results on November 14, 2025. Standalone interest income grew modestly to ₹978.73 lakhs in Q2 FY26 (vs ₹907.07 lakhs in Q2 FY25) and ₹1,913.19 lakhs in H1 FY26 (vs ₹1,850.24 lakhs in H1 FY25). However, standalone profit after tax declined to ₹459.81 lakhs in H1 FY26 from ₹534.03 lakhs in H1 FY25, a drop of roughly 14%, with net profit margin compressing to 0.24 from 0.29. On a consolidated basis, including share of profit from associate Rudraveerya Developers, total comprehensive income rose to ₹1,977.67 lakhs (vs ₹1,551.49 lakhs). Borrowings increased to ₹29,382 lakhs from ₹25,732 lakhs, pushing standalone debt-to-equity to 4.24. Operating cash flow turned sharply negative at -₹3,412.80 lakhs for H1 FY26 compared to a positive ₹3,964.80 lakhs a year ago. Statutory auditor Ajay Rattan & Co. issued an unmodified limited review report on both standalone and consolidated results.

Likely market impact

Standalone earnings are weakening despite stable revenue, with falling margins and a sharp swing to negative operating cash flow signalling stress in core lending business. However, consolidated numbers look healthier due to associate contributions, though the very high standalone leverage (D/E of 4.24) is a concern for shareholders to monitor.