Explicit Finance reported a net loss of ₹0.87 lakh for the financial year ended March 31, 2026, widening from a loss of ₹0.47 lakh in FY25. The non-significant non-deposit accepting NBFC saw its total revenue contract by 51.8% to ₹327.07 lakh from ₹678.94 lakh in the previous year.

The decline in top-line growth was primarily driven by a sharp fall in revenue from operations, which dropped to ₹254.51 lakh from ₹617.31 lakh. This was largely due to reduced activity in secondary capital market operations, with the purchase of shares falling to ₹260.11 lakh compared to ₹625.59 lakh in FY25.

Financial Performance

Despite the drop in operational revenue, other income rose to ₹72.56 lakh from ₹61.63 lakh, supported by higher interest income of ₹72.08 lakh. However, this was offset by a significant increase in other expenses, which jumped to ₹44.92 lakh from ₹13.40 lakh. A major contributor to this rise was bad debts written off, amounting to ₹23.29 lakh in FY26, whereas no such provision was made in the prior year.

What the Numbers Show

The company’s liquidity position tightened considerably during the year. Cash and cash equivalents plummeted to ₹25.88 lakh from ₹188.46 lakh at the end of FY25. This sharp contraction in cash reserves coincided with an increase in non-current loans and advances, which rose to ₹747.96 lakh from ₹578.93 lakh, suggesting a deployment of capital into lending assets despite lower trading revenues.

Corporate Governance Updates

At the upcoming Annual General Meeting on September 30, 2026, shareholders will vote on the re-appointment of Mr. Avinash Mainkar as a Non-Executive Director. Additionally, the board seeks approval for the appointment of Ms. Dipali Rajendra Marathe as an Independent Director for a five-year term starting August 12, 2026.

The company did not declare any dividend for FY26 due to the accumulated losses. The Board noted that internal control systems remained adequate, with no material observations from internal auditors regarding effectiveness.

Explicit Finance has accepted the resignation of Ms. Vandana Kalokhe as an Independent Director, effective August 31, 2026. The company cited her pre-occupation as the reason for stepping down from the board.

The Board of Directors received the resignation letter dated August 31, 2026, and confirmed the immediate cessation of her duties. Ms. Kalokhe had been appointed as an Additional Director in the Non-Executive Independent category on June 16, 2026, subject to shareholder approval.

Resignation Details

Ms. Kalokhe tendered her resignation due to pre-occupation with work commitments. The company stated there were no other reasons for the departure. She holds a B.Com degree from the University of Mumbai and possesses expertise in accounting and finance.

Her professional background includes one year as an accountant at Oil and Natural Gas Corporation and a role as an operation executive at Revopedia Hospitality. She currently works as a freelance accountant and consultant for NBFCs and other entities.

Regulatory Compliance

The company notified the BSE Limited pursuant to Regulation 30 of the SEBI (LODR), 2015. The disclosure was made in compliance with SEBI circular no. CIR/CFD/CMD/4/2015 dated September 9, 2015.

Ms. Kalokhe’s DIN is 11757001. She is not related to any other director or Key Managerial Personnel of the company. The company confirmed she is not debarred from holding office by any order from SEBI or any other authority.