Avon Mercantile Turns Profitable with Net Profit of ₹91.62 Lakh
Avon Mercantile Limited returned to profitability in FY26 with a net profit of ₹91.62 lakh, compared to a loss of ₹1.41 lakh in FY25. Total income increased to ₹485.62 lakh, while revenue from operations reached ₹484.21 lakh. The audited results were published in the Financial Express and Jansatta on May 21, 2026.
*this image is generated using AI for illustrative purposes only.
Avon Mercantile Limited has announced its audited financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the outcomes during a meeting held on May 20, 2026. The company reported a significant turnaround in its financial performance for the fiscal year, returning to profitability compared to the previous year. In accordance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published these audited financial results in the Financial Express and Jansatta newspapers on May 21, 2026.
Financial Performance Overview
For the year ended March 31, 2026, Avon Mercantile Limited posted a net profit of ₹91.62 lakh. This marks a reversal from the net loss of ₹1.41 lakh recorded in the previous fiscal year ended March 31, 2025. Total income for the year rose to ₹485.62 lakh, up from ₹256.95 lakh in the prior year. Revenue from operations, primarily driven by interest income, increased to ₹484.21 lakh from ₹255.22 lakh.
Quarterly Results
In the quarter ended March 31, 2026, the company reported a net profit of ₹26.47 lakh. This compares to a net loss of ₹0.95 lakh in the corresponding quarter of the previous year. Revenue from operations for the quarter stood at ₹123.84 lakh, compared to ₹102.86 lakh in the same period last year. Total expenses for the quarter were managed at ₹98.78 lakh, slightly lower than the ₹103.81 lakh reported in the corresponding quarter of the previous year.
Key Metrics and Segment Information
The company operates as a single segment loan company. Earnings per equity share (basic and diluted) for the year ended March 31, 2026, were recorded at ₹1.23, improving from a loss of ₹0.02 per share in the previous year. For the quarter ended March 31, 2026, earnings per share were ₹0.35. The independent auditors, Gupta Garg & Agarwal, have provided an unqualified opinion on the financial results, confirming they are presented in accordance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Financial Position
As of March 31, 2026, the company's total assets stood at ₹4,570.66 lakh, an increase from ₹3,973.15 lakh in the previous year. Borrowings amounted to ₹3,599.75 lakh, while equity share capital remained unchanged at ₹747.74 lakh. Cash and cash equivalents improved to ₹10.75 lakh as of March 31, 2026, compared to ₹6.18 lakh a year earlier.
| Financials (₹ in Lakh) | Year Ended Mar 31, 2026 | Year Ended Mar 31, 2025 |
|---|---|---|
| Total Income | 485.62 | 256.95 |
| Revenue from Operations | 484.21 | 255.22 |
| Total Expenses | 394.00 | 258.36 |
| Net Profit / (Loss) | 91.62 | (1.41) |
| Earnings Per Share (₹) | 1.23 | (0.02) |
Given that Avon Mercantile's revenue nearly doubled driven primarily by interest income, how sustainable is this growth trajectory if interest rates decline or borrower defaults increase?
With borrowings of ₹3,599.75 lakh against total assets of ₹4,570.66 lakh, how might the company's high leverage ratio impact its ability to raise additional capital for future expansion?
As a single-segment loan company, does Avon Mercantile have any plans to diversify its business operations or product offerings to reduce concentration risk?
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