Avon Mercantile Limited adopted its audited financial statements for the fiscal year ended March 31, 2026, during its 41st Annual General Meeting held on September 29, 2026. The meeting, conducted via video conferencing, also approved the re-appointment of Mr. Gurvinder Pal Singh as a director retiring by rotation.

The proceedings were chaired by Mr. Siddheshwar Kumar Upadhyay, Non-Executive Independent Director, who called the meeting to order after confirming the requisite quorum. Ms. Himanshi Dhakad, Company Secretary, managed the conduct of the meeting following an initial introduction of panellists.

Voting and procedural details

The company engaged National Securities Depository Limited (NSDL) to provide e-voting facilities for shareholders. Mr. Dinkar Sharma, PCS, was appointed as the Scrutinizer to oversee the remote e-voting process and voting during the meeting. Remote e-voting was open from September 26, 2026, at 9:00 am to September 28, 2026, at 5:00 pm. Members who did not vote remotely could cast their votes during the meeting itself.

Key resolutions passed

The members deliberated on two ordinary business items as outlined in the notice dated September 5, 2026:

Mr. Singh, holding DIN 05207077, retired by rotation and was eligible for re-appointment, which was duly approved by the shareholders.

Post-meeting actions

Following the adoption of resolutions, the Chairman invited questions from members before concluding the session with a vote of thanks. The final results of the e-voting are expected to be disseminated to the stock exchanges and NSDL, and posted on the company website by October 1, 2026, upon receipt from the Scrutinizer.

Avon Mercantile reported a net profit of ₹91.62 lakh for the financial year ended March 31, 2026, marking a turnaround from a net loss of ₹1.41 lakh in FY25. The Noida-based non-banking financial company (NBFC) filed its annual report on September 2, 2026, disclosing strong growth in interest income alongside rising borrowing costs.

Financial Performance

The company's total income surged to ₹485.62 lakh in FY26, up from ₹256.95 lakh in the previous year. This growth was primarily driven by interest income, which more than doubled to ₹484.21 lakh from ₹255.22 lakh. However, the expansion in lending activity was accompanied by a sharp rise in finance costs, which jumped to ₹337.49 lakh from ₹161.11 lakh.

Operating expenses contracted significantly. Employee benefits expenses fell by 45% to ₹26.49 lakh, and other expenses declined to ₹28.92 lakh from ₹48.24 lakh. Despite the higher revenue, the company did not declare any dividend for the year.

Balance Sheet and Capital Structure

As of March 31, 2026, Avon Mercantile's total assets stood at ₹45,706.63 lakh, an increase from ₹39,731.57 lakh in FY25. Loans constituted the bulk of the asset base, rising to ₹40,737.79 lakh from ₹37,095 lakh. Borrowings increased to ₹35,997.55 lakh from ₹32,692.55 lakh, reflecting the funded expansion of its loan book.

The company's equity share capital remained unchanged at ₹74,773.90 lakh. However, other equity improved to a deficit of ₹14,373.83 lakh from ₹23,535.66 lakh, aided by the current year's profits. The NBFC Reserve Fund under Section 45IC of the RBI Act saw an addition of ₹18.32 lakh during the year.

Management Changes

The annual report highlighted significant churn in key managerial personnel during FY26. Mr. Gaurav Aggarwal resigned as Manager on October 29, 2025, and was subsequently appointed as Chief Financial Officer effective October 30, 2025. Ms. Nikita Sehrawat was appointed as Manager in January 2026.

Other exits included Mr. Ajay Singh, who stepped down as CFO in July 2025, and Ms. Disha Soni, who resigned as Company Secretary in September 2025. Ms. Himanshi Dhakad took over as Company Secretary in October 2025. The Board of Directors remained stable with three members: Non-Executive Director Mr. Gurvinder Pal Singh and Independent Directors Ms. Himani Aneja and Mr. Siddheshwar Kumar Upadhyay.

What the Numbers Show

The profit turnaround was operational in nature, driven entirely by core lending activities rather than one-off gains. Interest income accounted for 99.7% of total income, underscoring the company's reliance on its loan portfolio. While the net interest margin appears healthy given the profit recovery, the doubling of finance costs suggests that the company is funding its asset growth through expensive borrowings, likely from related parties or private lenders, as indicated by the rise in borrowings from ₹32,692 lakh to ₹35,997 lakh.