Jindal Capital Limited has filed its annual report and 32nd Annual General Meeting (AGM) notice for the financial year ended March 31, 2026. The company seeks shareholder approval to raise its borrowing limit to ₹500 crore and proposes doubling the monthly remuneration for its top executives.

The AGM is scheduled for September 30, 2026, at the company's registered office in Delhi. Shareholders will vote on special resolutions regarding the enhanced borrowing capacity, which supersedes limits approved at the previous meeting in September 2024. This move aims to accommodate additional fund requirements for operational purposes.

Financial Performance Overview

For FY26, Jindal Capital reported a total revenue of ₹430.15 lakh, an increase from ₹388.70 lakh in the prior year. Net profit after tax stood at ₹113.00 lakh, down from ₹116.97 lakh in FY25. The decline in net profit occurred despite revenue growth, driven by higher finance costs and employee benefits.

Interest income rose significantly to ₹372.95 lakh from ₹289.57 lakh, reflecting growth in the loan book. However, finance costs increased to ₹103.67 lakh from ₹65.63 lakh, impacting the bottom line. The company did not recommend any dividend for the year.

What the Numbers Show

The divergence between rising interest income and expanding finance costs highlights the cost of funding the accelerated loan growth. While interest income grew by approximately 29%, finance costs surged by nearly 58%. This suggests that the marginal cost of new borrowings may be higher than the yield on new loans, or that the mix of funding has shifted toward more expensive sources. Additionally, employee benefits rose to ₹103.09 lakh from ₹83.23 lakh, contributing further to the pressure on net profits despite higher top-line growth.

Governance and Remuneration Changes

The Board proposes increasing the monthly managerial remuneration for Chairman-cum-Managing Director Sadhu Ram Aggarwal and Executive Director & CFO Divya Aggarwal from ₹1 lakh to ₹2 lakh each, effective October 1, 2026. Both directors are related parties; Sadhu Ram Aggarwal is the father-in-law of Divya Aggarwal.

The notice also includes the regularization of Mr. Nischal Mittal as an Independent Director, effective August 12, 2026, for a five-year term. Mr. Subhash Kumar Changoiwala resigned as an Independent Director in August 2026.

Capital Structure and Liquidity

Total borrowings increased to ₹1,424.30 lakh from ₹776.20 lakh as of March 31, 2025. Cash and cash equivalents dropped sharply to ₹23.67 lakh from ₹281.72 lakh, indicating significant deployment of funds into loans or other uses during the year. The authorized share capital was increased to ₹22 crore during the year.

Jindal Capital has filed a Draft Letter of Offer with the Bombay Stock Exchange (BSE) for its proposed rights issue of up to ₹20 crore. The company’s Board of Directors sanctioned the proposal during a meeting held on August 27, 2026, to raise capital through fully paid-up equity shares with a face value of ₹10 each.

The issuance targets eligible equity shareholders as on the record date, which is yet to be fixed. The specific terms, including the issue price and rights entitlement ratio, will be determined by the Board or an authorized committee in due course.

Rights Issue Details

The aggregate amount proposed is not exceeding ₹20.00 crore. The funds raised are primarily intended to augment the company's capital base and meet funding requirements for increasing operational scale in its non-banking financial company (NBFC) activities. A portion of the net proceeds may also be utilized for general corporate purposes, subject to regulatory limits.

Regulatory Compliance

Sadhu Ram Aggarwal, Chairman-cum-Managing Director, signed the disclosure dated August 27, 2026. The proposal is subject to necessary statutory and regulatory approvals under the Companies Act, 2013, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The trading window for designated persons remains closed until 48 hours after the conclusion of the board meeting, in compliance with SEBI’s Prohibition of Insider Trading Regulations, 2015.

Promoter Participation

As of June 30, 2026, promoters and promoter group collectively hold 71.34% of the pre-issue paid-up equity share capital. They have indicated their intention to participate in the issue, including subscribing to their respective rights entitlements and potentially additional shares, while maintaining compliance with minimum public shareholding requirements.