Challani Capital Limited adopted its financial statements for the fiscal year ended March 31, 2026, during its Annual General Meeting held on September 29, 2026. The company also re-appointed Swapna Pawan Kochar as a director following her retirement by rotation.

The meeting was conducted via audio-visual means in compliance with Ministry of Corporate Affairs and SEBI circulars. A total of 16 members participated in the virtual session, which commenced at 11:00 am and concluded at 11:40 am after a five-minute window for electronic voting.

Board participation and governance

Ramesh Kumar Mallela served as the chairman for the meeting, having been proposed by Padam J Challani and seconded by Swapna Pawan Kochar. The board members present included:

• Ramesh Kumar Mallela (Independent Director)
• Selvamani Gowrishankaran (Independent Director)
• Padam J Challani (Managing Director)
• Swapna Pawan Kochar (Director)

Anuja Ghorawat attended as the Company Secretary, while Alagar. R served as the scrutinizer for the e-voting process. Renuka Ramesh from RSM & Associates was present as the statutory auditor.

Voting and procedural details

Electronic voting facilities were made available to shareholders from September 25, 2026, to September 28, 2026. The scrutinizer ensured the fair conduct of voting during the meeting itself for those who had not voted prior. Results were determined by aggregating votes in favor and against each resolution.

The company confirmed that voting results would be uploaded to its website and made available at the registered office. No specific financial figures regarding revenue or profit were disclosed in the meeting proceedings.

Challani Capital Limited reported a sharp decline in profitability for FY26, with net profit falling 59.6% year-on-year to ₹74.95 lakh. The Chennai-based non-deposit accepting non-banking financial company (NBFC) saw its total income contract by 27.8% to ₹198.16 lakh, weighed down by a significant drop in other operating income and increased provisions for bad debts.

The company's AGM is scheduled for September 29, 2026, where shareholders will adopt the audited financial statements for the year ended March 31, 2026. No dividend has been recommended for the period.

Financial Performance

Revenue from operations declined 21.0% to ₹197.87 lakh, compared to ₹250.59 lakh in FY25. While interest income on loans grew marginally by 5.3% to ₹136.47 lakh, this was more than offset by a steep fall in other operating income.

Other operating income plummeted 94.9% to ₹61.40 lakh from ₹120.88 lakh in the previous year. This category primarily includes bad debt recoveries, which dropped significantly despite a noted recovery of ₹40.40 lakh against previously written-off receivables. Total expenses rose 39.1% to ₹123.21 lakh, driven largely by a ₹39.81 lakh provision for standard and substandard assets, a line item that was nil in FY25.

What the Numbers Show

The divergence between stable interest income and collapsing other income highlights a shift in the quality of earnings. In FY25, other operating income contributed nearly half of the revenue base; in FY26, it accounted for just over 30%. Furthermore, the emergence of significant provisioning costs—absent in the prior year—suggests tightening credit conditions or specific asset stress within the loan portfolio, eroding the operational buffer provided by interest margins.

Balance Sheet and Governance

Cash and cash equivalents nearly doubled to ₹171.63 lakh from ₹91.68 lakh, indicating improved liquidity despite lower profits. The company maintains a robust capital adequacy ratio, with Tier I CRAR at 117.46%, well above regulatory norms.

Governance updates include the re-appointment of Mrs. Swapna Pawan Kochar as a Non-Executive Woman Director. The board also noted a penalty of ₹4.06 lakh levied by the BSE for delayed annual report submissions, which the company has disputed but ultimately paid pending clarification. The secretarial audit highlighted minor discrepancies in promoter shareholding records due to erroneous transfers, which are currently being rectified.