Esaar (India) Ltd turned profitable in FY26, reporting a net profit of ₹1,113.69 lakh compared to a net loss of ₹224.40 lakh in the previous year. The Mumbai-based NBFC saw its revenue from operations surge 175% to ₹4,070.88 lakh, driven primarily by significant gains from share trading activities.

The company submitted its 74th Annual Report for the financial year ended March 31, 2026, to the BSE on September 7, 2026. The turnaround was underpinned by a sharp rise in income from operations and a reduction in impairment charges on financial instruments.

Financial Performance

Revenue from operations rose to ₹4,070.88 lakh from ₹1,476.84 lakh in FY25. This growth was largely fueled by a net gain on trading of shares amounting to ₹2,652.97 lakh, a line item that did not exist in the prior year's format due to a change in accounting presentation. Interest income also contributed, rising to ₹1,314.99 lakh from ₹886.93 lakh.

Total expenses stood at ₹2,617.26 lakh. While finance costs increased to ₹972.21 lakh from ₹538.04 lakh, impairment on financial instruments decreased significantly to ₹1,070.44 lakh from ₹1,258.75 lakh. Other income fell to ₹107.73 lakh from ₹412.23 lakh, reflecting lower bad debts written back and sundry balances reversed compared to the previous year.

What the Numbers Show

The profitability in FY26 was heavily influenced by trading activities rather than core lending operations. The net gain on trading of shares (₹2,652.97 lakh) exceeded the total interest income (₹1,314.99 lakh), indicating a strategic shift or increased volume in share trading inventory. Furthermore, while other income dropped sharply, the company managed to reduce its impairment charges by nearly ₹188 lakh, suggesting improved asset quality or specific recoveries within its loan book.

Balance Sheet and Capital Structure

Total assets grew to ₹11,973.26 lakh from ₹10,872.55 lakh. Loans, the largest asset class, remained stable at ₹8,551.78 lakh. However, inventories (shares held for trade) expanded dramatically to ₹1,309.17 lakh from just ₹37.52 lakh, aligning with the revenue mix shift. Borrowings declined to ₹4,688.28 lakh from ₹5,433.22 lakh, improving the debt-equity ratio to 1.19 from 3.00.

Corporate Developments

During the year, Prabhat Capital Investments Limited completed an open offer to acquire up to 26% stake in Esaar (India). Approximately 8.46 lakh shares representing 4.19% of the voting share capital were tendered and accepted. The company also increased its authorized share capital from ₹61.50 crore to ₹81.50 crore. No dividend was recommended for FY26.

The Board appointed Dipesh B. Mistri as CFO effective June 10, 2026, following the resignation of the previous CFO. The secretarial audit highlighted delays in filing quarterly results for Q2 and Q3 FY26 due to the resignation of the statutory auditor during the year.

Esaar (India) Ltd has filed its Letter of Offer with BSE Limited for a proposed rights issue aggregating up to ₹599.65 crore. The filing confirms the record date as Tuesday, August 25, 2026, and outlines the issuance of up to 5,99,64,667 equity shares at ₹10 per share.

The Rights Issue Committee approved the terms in a meeting held on August 19, 2026. The company plans to issue fully paid-up equity shares with a face value of ₹10 each at par, with no premium. Eligible shareholders will receive rights entitlements in the ratio of 44 rights equity shares for every 15 fully paid-up equity shares held on the record date.

Issue Timeline

The rights issue opens for subscription on September 2, 2026, and closes on September 11, 2026. Key dates for the issuance are outlined below:

Capital Structure Impact

Prior to the rights issue, Esaar (India) has 2,04,42,500 outstanding equity shares. Assuming full subscription, the post-issue capital structure will comprise 8,04,07,167 equity shares. This represents a significant expansion of the shareholder base, increasing the total number of shares by approximately four times the current outstanding count.

Use of Proceeds

The company intends to utilize the net proceeds primarily to augment its capital base to meet future business requirements for its lending activities. A portion of the funds will also be allocated towards general corporate purposes. The issue aims to strengthen the company's financial position and support its growth initiatives in the non-banking financial sector.

What the Numbers Show

The rights issue is priced at par (₹10), indicating no premium over face value. The aggressive entitlement ratio of 44:15 suggests the company is seeking substantial capital infusion relative to its current free float or promoter holding structure. This move is likely intended to fund growth initiatives or deleverage, aligning with the stated objectives of augmenting the capital base for lending business activities.