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.

Karnavati Finance board of directors has scheduled the company’s 42nd annual general meeting for September 30, 2026. The meeting will be conducted via video conference or other audio-visual means.

The board approved the agenda and explanatory statements during its session on September 7, 2026. Shareholders must hold shares as of the cutoff date to participate in electronic voting.

Meeting Details

The annual general meeting is set for 3:30 pm on September 30, 2026. The event will follow virtual protocols established for corporate governance compliance. The deemed venue for the AGM is the company's registered office in Mumbai.

Agenda Items

Shareholders will transact ordinary business at the meeting. Key agenda items include:

• Adoption of audited financial statements for FY26 ended March 31, 2026, along with reports from directors and auditors.
• Re-appointment of Mr. Jay Morzaria (DIN: 02338864), Managing Director, who retires by rotation and is eligible for re-appointment.

Mr. Morzaria holds 11,573,500 equity shares in the company. He attended all five board meetings held during FY26. His remuneration remains unchanged, capped at ₹1,00,000 per month.

Record Dates

The cutoff date for determining eligibility to vote electronically is September 23, 2026. The book closure period spans from September 24, 2026, to September 30, 2026.

E-Voting Process

National Securities Depository Limited (NSDL) has been engaged as the authorized e-voting agency. The remote e-voting period commences on Sunday, September 27, 2026, at 9:00 am and ends on Tuesday, September 29, 2026, at 5:00 pm.

Members holding shares in demat mode with NSDL or CDSL can log in using their depository credentials. Physical shareholders must use their EVEN number followed by their folio number as their User ID. Proxy voting is not available for this virtual AGM, though body corporates may appoint authorized representatives.

CS Jitendra Parmar has been appointed as the Scrutinizer to oversee the voting process. Results will be communicated to BSE Limited within two working days of the meeting conclusion.