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.
SONAL · price
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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.
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.