Karnavati Finance Limited has closed its trading window for insiders starting October 1, 2026. The restriction remains in effect until 48 hours after the company declares and publishes its unaudited financial results for the quarter ended September 30, 2026.

This action is taken pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, as amended. It also aligns with the company's code of internal procedures and conduct for prevention of insider trading in securities.

Regulatory Compliance Details

The closure applies to all insiders covered under the company's code of internal procedures. The move ensures compliance with the Securities and Exchange Board of India (Prohibition of Insider Trading) (Second Amendment) Regulations, 2019.

Additionally, the decision references BSE Circular no. LIST/COMP/01/2019-20 dated April 2, 2019. This circular provides clarification regarding the trading restrictions period for listed entities.

Key Dates and Restrictions

The company informed BSE Limited of this closure on September 30, 2026. The notice was signed by Jay Morzaria, Managing Director, confirming the adherence to regulatory norms.

Karnavati Finance reported a significantly wider net loss of ₹590.07 lakh for FY26, compared to ₹168.06 lakh in the previous year. The NBFC saw its total revenue surge by 237.6% to ₹530.91 lakh, driven by aggressive loan book expansion.

The company's 42nd Annual General Meeting is scheduled for September 30, 2026, where shareholders will consider the reappointment of Managing Director Jay Morzaria.

Financial Performance

Total income from operations rose to ₹530.79 lakh in FY26 from ₹155.35 lakh in FY25. This growth was primarily fueled by a tripling of the loan book, which expanded by 203.7% to ₹6,474.74 lakh. However, this top-line growth was offset by disproportionately higher expenses and provisions.

What the Numbers Show

The widening loss was not merely a result of operational inefficiencies but was heavily driven by credit risk provisioning. Impairment on financial instruments jumped 276.7% to ₹657.42 lakh, exceeding the total revenue generated by the company. This indicates that the cost of credit defaults outpaced the interest income earned during the period.

Furthermore, finance costs more than tripled to ₹387.38 lakh from ₹115.20 lakh, reflecting a 439.9% increase in total borrowings to fund the rapid asset growth. The debt-to-equity ratio deteriorated sharply to 13.85 from 1.08, signaling increased leverage and financial risk.

Operational & Governance Updates

The company did not declare any dividend for FY26 due to the accumulated losses. No transfer was made to the Statutory Reserve Fund as per Section 45-IC of the RBI Act.

Key governance developments include:

• Managing Director Jay Morzaria retires by rotation and seeks reappointment at the AGM.
• The Board met five times during the year, with all directors attending all meetings.
• The company faced minor regulatory non-compliances regarding shareholding pattern submission delays and website maintenance, resulting in fines paid to the BSE.