Aastamangalam Finance FY26 Results: Net profit rises 14% to ₹944 lakh
- Net profit rose 14% YoY to ₹944.31 lakh in FY26
- Total income grew to ₹1,717.65 lakh driven by higher interest income
- No dividend recommended; ₹188.86 lakh transferred to statutory reserves
- Cash reserves surged to ₹2,237 lakh from ₹273 lakh in FY25
*this image is generated using AI for illustrative purposes only.
Aastamangalam Finance reported a 14% year-on-year rise in net profit to ₹944.31 lakh for the financial year ended March 31, 2026. The Chennai-based NBFC posted total income of ₹1,717.65 lakh, up from ₹1,549.62 lakh in FY25.
The company's Board of Directors did not recommend any dividend for the year, opting instead to transfer ₹188.86 lakh to the Statutory Reserve as per RBI guidelines. The firm also spent ₹12 lakh on Corporate Social Responsibility (CSR) activities, exceeding its obligation of ₹11.47 lakh.
Financial Performance
Interest income, the primary revenue driver, grew to ₹1,716.42 lakh from ₹1,527.13 lakh in the previous year. This growth outpaced the rise in finance costs, which stood at ₹400.21 lakh compared to ₹226.13 lakh in FY25.
| Metric | FY26 (₹ Lakh) | FY25 (₹ Lakh) | Change |
|---|---|---|---|
| Total Income | 1,717.65 | 1,549.62 | +10.8% |
| Pre-Provision Operating Profit | 1,238.35 | 1,219.87 | +1.5% |
| Net Profit After Tax | 944.31 | 827.67 | +14.1% |
Profit before tax and exceptional items rose to ₹1,273.90 lakh from ₹1,048.38 lakh. The improvement was supported by a reversal in statutory provisions on loan assets, which reduced to a credit of ₹35.55 lakh against a debit of ₹171.49 lakh in FY25.
Balance Sheet & Assets
Total assets expanded to ₹13,888 lakh from ₹12,166 lakh in FY25. The loan book contracted slightly to ₹11,562 lakh from ₹11,887 lakh, with all loans classified as repayable on demand. Cash and cash equivalents surged significantly to ₹2,237 lakh from ₹273 lakh, bolstered by strong operating cash flows.
Borrowings increased to ₹5,045 lakh from ₹4,445 lakh, primarily driven by higher inter-corporate deposits. The debt-equity ratio remained stable at 0.60.
What the Numbers Show
The divergence between revenue growth and expense management highlights improved operational efficiency. While finance costs nearly doubled due to increased borrowings, other expenses fell sharply from ₹88.16 lakh to ₹56.80 lakh. This cost discipline, combined with the reversal of loan asset provisions, allowed net margins to expand to 54.98% from 53.41% in the previous year.
Corporate Governance
The company’s Annual General Meeting is scheduled for September 25, 2026, to be held via video conferencing. Ms. Bhavika M Jain retires by rotation and offers herself for re-appointment. The Board also recommends the re-appointment of M/s. Venkat and Rangaa LLP as Statutory Auditors for a five-year term until FY31.
Independent Director Mr. Jadav Chand Jain Akash Jain ceased to be a director following his demise in July 2026. The Secretarial Audit report noted minor observations regarding the implementation of SDD software and timely filing of RBI returns, which management stated it is addressing.
Historical Stock Returns for Aastamangalam Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.48% | +1.40% | -8.07% | +5.25% | -28.89% | +129.00% |
How will the significant increase in cash reserves (₹2,237 lakh) influence Aastamangalam Finance's future lending expansion plans or potential asset diversification?
What strategies will the company employ to sustain its high net margins (54.98%) given the near-doubling of finance costs due to increased borrowings?
How might the absence of a dividend payout impact investor sentiment and stock liquidity in the short to medium term?
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