Kinetic Trust Limited reported a profit of ₹14.76 lakh for the financial year ended March 31, 2026, a decrease from ₹18.21 lakh in the previous year. The non-banking financial company (NBFC) faces regulatory constraints regarding its capital adequacy, as it could not maintain the minimum Net Owned Fund (NOF) requirement of ₹5 crore due to an ongoing takeover process. The company has communicated these facts to the Reserve Bank of India (RBI) and SEBI.

Financial Performance

Revenue from operations increased to ₹175.17 lakh for the year ended March 31, 2026, compared to ₹118.24 lakh in the prior year. Interest income constituted the primary component of revenue, rising to ₹175.12 lakh from ₹118.24 lakh. Total expenses for the period amounted to ₹154.24 lakh, up from ₹93.79 lakh in the previous year, driven largely by finance costs which climbed to ₹127.56 lakh from ₹71.97 lakh.

The company’s earnings per share (EPS) stood at ₹0.44 for the current year, down from ₹0.54 in the previous year. The board of directors did not declare any dividend for the year.

Regulatory Compliance and Capital

The statutory auditor, Sunita Agrawal & Co, highlighted in the Independent Auditor’s Report that the company’s Net Owned Fund stood at ₹4.16 crore as on March 31, 2026. This falls short of the ₹5 crore minimum requirement laid down in the Master Direction of the RBI for NBFC-ND. The report states the company is unable to increase its share capital until the takeover process is complete.

Asset Quality and Internal Controls

The auditor confirmed that the company has adequate internal financial controls over financial reporting, which were operating effectively as of March 31, 2026. The company, classified as a Loan Company under the Base Layer (NBFC-BL), reported compliance with prudential norms relating to income recognition, asset classification, and provisioning.

The balance sheet size expanded to ₹3,670.94 lakh as of March 31, 2026, from ₹2,039.19 lakh in the previous year. Borrowings increased significantly to ₹2,859.58 lakh from ₹1,530.04 lakh, while loans and advances grew to ₹3,474.43 lakh from ₹1,805.17 lakh.

Kinetic Trust Limited has scheduled its 34th Annual General Meeting (AGM) for August 7, 2026, to seek shareholder approval for a preferential issue of warrants aggregating ₹6.60 crore and to adopt audited financial statements for the year ended March 31, 2026. The meeting will be held at Flat No 4, 1st Floor, Khurana Complex, Kochar Market Chowk, Ludhiana, Punjab. The company has fixed July 31, 2026, as the record date to determine shareholder eligibility for the AGM and e-voting.

Preferential Issue and Fundraising

The Board proposes to issue up to 60,00,000 warrants convertible into equity shares to persons belonging to the non-promoter category at a price of ₹11 per warrant. The issue aims to raise ₹6.60 crore to augment the company's Net Owned Fund (NOF) to meet the ₹10 crore requirement mandated by the Reserve Bank of India by March 31, 2027, and to meet working capital requirements. The warrants will be convertible into one fully paid-up equity share of ₹10 each at a premium of ₹1 within 18 months from the date of allotment. The proposed allottees include Vipul Garg, Nidhi Jindal, and Kushal Jain, among others.

Agenda and Corporate Governance

The AGM agenda includes the adoption of audited financial statements for FY26, the reappointment of Director Rajesh Arora, and the regularization of Sumit Kumar Jha as a Non-Executive Independent Director. Shareholders will also vote on increasing the authorized share capital from ₹5.50 crore to ₹10 crore. Mr. Chetan Gaur, Practicing Company Secretary, has been appointed as the scrutinizer for the e-voting process, which will be open from August 4, 2026, to August 6, 2026.