Explicit Finance Limited has disclosed the details of its related party transactions for the six months ended March 31, 2026. The filing, submitted to BSE Ltd., outlines specific financial dealings between the company and its key management personnel and associated entities as required under Regulation 23(9) of the SEBI (Listing Obligation & Disclosure Requirements) Regulations, 2015.

The disclosure identifies several key management personnel, including Mr. Rajesh Nanda, Managing Director, and Mr. Narendrasinh Zala, CFO and Executive Director. The list also includes Mr. Gopal Dave, Non Executive Non Independent Director and Chairman, who signed the disclosure.

Financial data reveals that explicit finance provided a loan to Voltrix Inc, a firm where Mr. Narendrasinh Zala is a partner. The transaction amount for the six months ended March 31, 2026, was ₹25.00 lakh, with an outstanding balance of ₹25.93 lakh as of the same date.

Additionally, the company reported receiving a loan from Mr. Gopal Dave during the same period. The transaction amount was ₹3.00 lakh, while the balance outstanding as of March 31, 2026, was ₹0.00.

Related Party Transactions Summary

Explicit Finance Limited reported a widened net loss of ₹0.87 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹0.47 lakh in the previous year. The company's revenue from operations fell 51.7% to ₹327.08 lakh, driven largely by a decline in income from the sale of shares and securities. For the quarter ended March 31, 2026, the company recorded a net loss of ₹14.75 lakh, reversing the profit of ₹14.74 lakh posted in the preceding quarter ended December 31, 2025.

The board of directors approved the audited standalone financial results for the quarter and financial year ended March 31, 2026, at a meeting held on May 29, 2026. The statutory auditors, GMCS & Co., expressed an unmodified opinion on the annual financial results, confirming compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial statements were prepared in accordance with Indian Accounting Standards.

Financial Performance

The decline in total revenue was primarily attributed to the sale of shares and securities, which fell to ₹254.51 lakh in FY26 from ₹617.31 lakh in FY25. Interest income, however, rose to ₹72.08 lakh from ₹59.13 lakh in the same period. Total expenses for the year increased marginally to ₹327.95 lakh from ₹327.95 lakh in the previous year, with purchases of stock-in-trade constituting the largest component at ₹260.11 lakh.

The basic and diluted earnings per share (EPS) for the year stood at a loss of ₹0.01, unchanged from the previous year. For the quarter ended March 31, 2026, the EPS was a loss of ₹0.16, compared to a profit of ₹0.16 in the quarter ended December 31, 2025.

Key Financial Metrics (Amount in Lakhs)

Balance Sheet and Cash Flows

The company's total assets stood at ₹798.61 lakh as of March 31, 2026, slightly higher than ₹796.07 lakh in the previous year. Loans constituted the largest asset category at ₹747.96 lakh, up from ₹578.93 lakh a year ago. Cash and cash equivalents decreased significantly to ₹25.88 lakh from ₹188.45 lakh, reflecting the net cash outflow during the year.

Net cash used in operating activities was ₹161.16 lakh, a reversal from the net cash generated from operations of ₹69.43 lakh in FY25. This outflow was largely due to a decrease in loans and changes in working capital. The company reported no reportable business segments, as it is engaged primarily in investment and financing activities.