Dharani Finance Limited reported a net profit of ₹20.35 lakh for the quarter ended June 30, 2026, up from ₹16.43 lakh in the corresponding period of FY25. The Chennai-based non-banking financial company (NBFC) saw its total income rise to ₹42.02 lakh from ₹35.99 lakh year-on-year, driven by growth in service income and gains on fair value changes. Despite the operational improvement, the company faces regulatory scrutiny as statutory auditors raised significant doubts about its ability to continue as a going concern due to uncollected interest on a major inter-corporate deposit.

The Board of Directors approved the unaudited financial results at a meeting held on August 10, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Srivatsan & Associates. The company also announced that its 36th Annual General Meeting will be held on September 23, 2026, via video conferencing.

Financial Performance

Revenue from operations increased to ₹41.90 lakh in Q1FY27, compared to ₹35.89 lakh in Q1FY25. Interest income stood at ₹21.03 lakh, while income from services grew significantly to ₹16.65 lakh from ₹12.75 lakh in the prior year. Gains on fair value changes contributed ₹4.16 lakh to the top line.

Total expenses decreased to ₹15.28 lakh from ₹14.09 lakh in the same quarter last year, primarily due to lower other expenses which fell to ₹5.32 lakh from ₹7.50 lakh. Employee benefit expenses rose slightly to ₹4.79 lakh. Profit before tax was ₹26.74 lakh, compared to ₹21.90 lakh in Q1FY25. After accounting for tax expenses of ₹6.39 lakh, the net profit for the period was ₹20.35 lakh. Earnings per share (basic and diluted) were ₹0.41, up from ₹0.33 in the previous year.

Auditor Concerns and Going Doubt

Srivatsan & Associates issued a qualified opinion on the financial statements, drawing attention to two critical matters that cast significant doubt on the company’s ability to continue as a going concern. The primary issue relates to an inter-corporate deposit (ICD) of ₹200 lakh given to M/s. Aryav Exports Private Limited on July 4, 2017. The company has not received interest on this deposit to date and has not accrued any interest for the quarter ended June 30, 2026.

The auditors noted that if the company were to make provisions for the outstanding balance as per prudential norms, its net owned funds would fall below the limits prescribed under Section 45-IA of the Reserve Bank of India Act, 1934. This shortfall could jeopardize the company’s license to operate as an NBFC. The management maintains that full repayment is expected based on discussions with the customer, but the auditors stated they are unable to comment on the appropriateness of the going concern assumption without further capital infusion or alternative business plans.

What the Numbers Show

The divergence between operational performance and regulatory compliance highlights a structural vulnerability in Dharani Finance’s balance sheet. While the core NBFC business generated higher profits through improved service fees and controlled operating expenses, the legacy asset quality issue remains unresolved. The reliance on a single ₹200 lakh ICD for maintaining regulatory capital adequacy indicates limited diversification in asset recovery strategies. Until the interest accrual or provision issue is resolved, the company’s regulatory standing remains contingent on external capital support rather than internal operational cash flows.

Dharani Finance Limited has updated the email addresses of its key officials authorized to determine the materiality of events and make requisite disclosures to stock exchanges. The company issued a formal intimation to the Bombay Stock Exchange on August 05, 2026, pursuant to Regulation 30(5) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This update supersedes previous contact details provided in an earlier filing dated February 11, 2026, ensuring that all future regulatory communications are directed to the correct channels. The change impacts the primary points of contact for investor relations and compliance matters within Dharani Finance Limited .

The revised contact information designates specific email addresses for the Managing Director, Chief Financial Officer, and Company Secretary. These roles are critical for the timely dissemination of price-sensitive information and other mandatory disclosures to the market. All other details regarding these authorized officials, as previously intimated to the exchange, remain unchanged. The company requested the listing department to record this update to maintain compliance with continuous disclosure norms.

Updated Authorized Officials

The following table outlines the current email IDs for the officials authorized to handle disclosures:

Regulatory Compliance

This disclosure aligns with the requirements set forth by the Securities and Exchange Board of India (SEBI) under the Listing Obligations and Disclosure Requirements (LODR) Regulations. Regulation 30 mandates that listed entities provide accurate and up-to-date contact information for officials responsible for making disclosures. By updating these details, Dharani Finance ensures that stakeholders, including investors and regulators, can effectively communicate with the company’s leadership team regarding material events.

The filing was signed by Murugavel Ramasamy, the Managing Director of Dharani Finance Limited, on August 05, 2026. The company’s registered and administrative office remains located at PGP House, Sterling Road, Nungambakkam, Chennai.