Dharani Finance Limited held its Board of Directors meeting on Saturday, May 16, 2026, and approved the audited standalone financial results for the quarter and financial year ended March 31, 2026, pursuant to Regulation 33 read with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board meeting commenced at 11:30 AM and concluded at 12:40 PM. In addition to the financial results, the board also approved the re-appointment of M/s. R Balachandran & Co, Chartered Accountants (FRN: 0000323S) as Internal Auditors of the company for the financial year 2026-27. The results were reviewed by the Audit Committee prior to board approval, and the statutory auditors have issued a modified (qualified) opinion on the audited financial results. Pursuant to Regulations 33 and 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company subsequently filed copies of newspaper advertisements with BSE Limited on May 18, 2026, confirming that the audited financial results were published in Makkal Kural (Tamil Edition) and Financial Express (English Edition) on May 17, 2026. The filing was signed by Murugavel Ramasamy, Managing Director (DIN: 10693633), and the newspaper publication extract was also signed by Dr. Palani G Periasamy, Chairman (DIN: 00081002).

Financial Performance Overview

Dharani Finance reported a net profit of ₹55.46 lakhs for the full year ended March 31, 2026, compared to ₹83.79 lakhs in the previous year, reflecting a decline. For the quarter ended March 31, 2026, net profit stood at ₹13.22 lakhs, against ₹18.89 lakhs in the corresponding quarter of the previous year. Total income for the full year came in at ₹139.81 lakhs, marginally lower than ₹142.43 lakhs in the prior year. The following table summarises the key financial metrics:

Balance Sheet Highlights

As at March 31, 2026, Dharani Finance reported total assets of ₹1,124.24 lakhs, up from ₹1,018.78 lakhs as at March 31, 2025. Total liabilities stood at ₹121.11 lakhs compared to ₹70.43 lakhs in the prior year, while total equity increased to ₹1,003.13 lakhs from ₹948.35 lakhs. Key balance sheet items are presented below:

Cash Flow Summary

For the year ended March 31, 2026, Dharani Finance generated net cash from operating activities of ₹30.57 lakhs, compared to ₹11.73 lakhs in the prior year. Net cash used in investing activities was ₹(65.00) lakhs, primarily on account of purchase of property, plant and equipment amounting to ₹65.26 lakhs. Net cash from financing activities was ₹45.59 lakhs, driven by loans received of ₹45.48 lakhs. Cash and cash equivalents at the end of the year stood at ₹23.01 lakhs, up from ₹11.85 lakhs at the beginning of the year.

Segment Performance

Dharani Finance operates primarily through its Financial Services segment, which accounted for the entirety of its revenue during the period. The following table presents segment-wise revenue, results, and capital employed:

Audit Qualifications and Going Concern Risk

Statutory auditors Srivatsan & Associates (FRN: 014921S) issued a qualified opinion on the financial results, citing two key matters. First, the company has not received interest on an inter-corporate deposit (ICD) of ₹200 lakhs given to M/s. Aravay Exports Private Limited on July 4, 2017, and accordingly no interest has been accrued for the financial years 2024-25 and 2025-26. Second, the auditors noted that had a provision been made for the outstanding balance of ₹272 lakhs (comprising the ICD and accrued interest carried at outstanding values), the net owned funds of the company as at March 31, 2026 would fall below the minimum threshold prescribed under Section 45-IA of the Reserve Bank of India Act, 1934 for a Non-Banking Financial Company (NBFC). The auditors stated that this casts significant doubt on the company's ability to continue as a going concern, and that its continuation as an NBFC may depend on infusion of further capital and identification of alternative business plans. This qualification is repetitive in nature, having appeared in audit reports of earlier years as well. Management, however, has expressed the opinion that full repayment of the outstanding receivable is expected based on discussions with the customer, and the financial statements have accordingly been prepared on a going concern basis.

It is separately noted that an ICD amount of ₹305 lakhs from a major customer — against whom Corporate Insolvency Resolution Process (CIRP) proceedings had been initiated — was subsequently received by the company on June 13, 2025, along with applicable interest, following approval of the resolution plan by the Hon'ble NCLT on December 20, 2023. Accordingly, the auditors confirmed that no material uncertainty exists regarding recovery of that amount. The company also holds 100% bad debt insurance coverage. The company is headquartered at "PGP House", No. 59, Sterling Road, Nungambakkam, Chennai – 600 034.

Dharani Finance Limited has notified the stock exchange of the vacation of office of its Director, Mr. Kolandagounder Kandasamy (DIN: 00277906), under Section 167(1)(b) of the Companies Act, 2013. The development was communicated to BSE Limited on May 16, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Reason for Vacation of Office

The Board of Directors of Dharani Finance Limited took note of the vacation of office following Mr. Kolandagounder Kandasamy's absence from Board meetings for a period of 12 months. Under Section 167(1)(b) of the Companies Act, 2013, a director's office becomes vacant if they absent themselves from all meetings of the Board of Directors held during a period of twelve months, whether or not leave of absence was granted.

Key Details of the Change

The following table summarises the key particulars of the directorial change as disclosed by the company:

Regulatory Compliance

The disclosure was made in accordance with Clause (7) of Para A of Part A of Schedule III of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026. The announcement was signed by Murugavel Ramasamy, Managing Director (DIN: 10693633), on behalf of Dharani Finance Limited.