Fynx Capital has scheduled its 41st Annual General Meeting (AGM) for Tuesday, September 29, 2026. The meeting will convene at 2:30 pm at the company’s registered office in Mumbai to vote on a proposed ₹200 crore borrowing limit and revised executive pay.

The Board of Directors concluded its meeting on September 3, 2026, finalizing the AGM details. The company appointed M/s. PHD & Associates as the Scrutinizer for the AGM to oversee e-voting and polling procedures.

Borrowing Limits and Related Party Transactions

The most significant financial proposal involves increasing the company’s overall borrowing limit to ₹200 crore. This special resolution seeks shareholder approval under Section 180(1)(c) of the Companies Act, 2013, allowing borrowings that exceed the aggregate of paid-up capital, free reserves, and securities premium. The funds are intended for working capital requirements and general corporate purposes.

Additionally, the board sanctioned a secured loan of ₹20 crore from Lord Krishna Financial Services Limited (LKFSL), a related party due to common directorship with Mr. Ashok Kumar Mittal. The loan carries an interest rate of LKFSL PLR minus 1.00% (currently 12.00%) and includes a 1% processing fee. The transaction is structured over five years, maturing on September 30, 2031.

Remuneration Revisions

Shareholders will also vote on revising the remuneration of Mr. Shanker Raman Siddhanathan, Managing Director. His annual remuneration cap is proposed to increase from ₹60 lakh to ₹1 crore, effective October 1, 2026, for a period of three years. This revision reflects his expanded responsibilities and experience in the finance sector.

Furthermore, the AGM will approve the annual remuneration of ₹25 lakh for Mr. Maheswar Sahu, Chairman and Non-Executive Director, for FY27. This payment exceeds 50% of the total remuneration payable to all non-executive directors, necessitating shareholder approval under SEBI Listing Regulations.

Administrative Details

The register of members and share transfer books will remain closed from September 23, 2026, to September 29, 2026. Remote e-voting will be available from 9:00 am on September 25, 2026, to 5:00 pm on September 28, 2026. The cut-off date for receiving the notice and annual report is August 28, 2026.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE455H01021/0c4db8df-3693-4d69-86bf-6ec0d16a0816.pdf

Fynx Capital Limited reported a net loss of ₹198.29 lakhs for the quarter ended June 30, 2026, widening significantly from the net loss of ₹56.65 lakhs in the corresponding period of the previous year. The deterioration was driven by a 474% surge in total expenses to ₹609.89 lakhs, which outpaced an eight-fold increase in total income to ₹394.70 lakhs. At a board meeting held on August 7, 2026, the company also approved the appointment of M/s. Bonanza Portfolio Limited as merchant banker for its proposed rights issue.

Financial Performance: Revenue Growth vs. Cost Inflation

Total income for Q1FY27 stood at ₹394.70 lakhs, a sharp rise from ₹48.68 lakhs in Q1FY26 and ₹249.43 lakhs in the preceding quarter. This growth was underpinned by interest income of ₹255.71 lakhs and fees and commission income of ₹131.78 lakhs. However, operational costs escalated disproportionately. Total expenses jumped to ₹609.89 lakhs from ₹106.19 lakhs a year ago, resulting in a pre-tax loss of ₹215.19 lakhs compared to ₹57.51 lakhs previously.

Key expense drivers included impairment on financial instruments at ₹103.71 lakhs (up from ₹1.93 lakhs), fees and commission expenses at ₹209.58 lakhs (up from ₹12.36 lakhs), and employee benefits at ₹93.65 lakhs. Finance costs also rose to ₹96.31 lakhs from ₹9.43 lakhs.

Balance Sheet and Cash Flow Dynamics

The company’s balance sheet expanded substantially, with total assets reaching ₹6,387.82 lakhs as of June 30, 2026, up from ₹4,329.30 lakhs in March 2026. This growth was fueled by a rise in loans to ₹4,955.83 lakhs from ₹3,351.33 lakhs and investments growing to ₹979.35 lakhs from ₹313.17 lakhs. Consequently, borrowings increased to ₹4,150.06 lakhs from ₹2,150.00 lakhs.

Cash flow statements reflect aggressive lending activity. Operating activities saw a net cash outflow of ₹1,559.66 lakhs, primarily due to ₹1,708.22 lakhs in loans disbursed. Investing activities recorded an outflow of ₹689.61 lakhs, largely for investment purchases. Financing activities provided a net inflow of ₹2,000.06 lakhs through borrowings. Closing cash and cash equivalents declined to ₹208.83 lakhs from ₹458.04 lakhs.

Corporate Developments and Shareholding

During the quarter, Fynx Capital granted Employee Stock Options (ESOPs) under the FynX Capital Employee Stock Option Plan – 2025. The paid-up equity share capital remained at ₹2,000.00 lakhs, comprising 200,000,000 shares of Re. 1/- each following a stock split completed in the previous fiscal year. Promoter holding stands at 74.90% with no encumbrances, while public shareholding is 25.10%. The statutory auditor’s limited review conclusion on the results was unmodified.