Lakshmi Finance reports net loss of ₹71.46 lakh in FY26

Lakshmi Finance & Industrial Corporation Ltd reported a net loss of ₹71.46 lakh for the financial year ended March 31, 2026, a significant reversal from the net profit of ₹357.98 lakh recorded in the previous year. The company’s board approved the audited financial results for the quarter and year ended March 31, 2026, at a meeting held on May 28, 2026. Despite the annual loss, the board recommended a dividend of ₹2.50 per equity share, representing 25% of the face value of ₹10 each, subject to shareholder approval at the upcoming Annual General Meeting.

The financial performance was impacted by a net loss on fair value changes amounting to ₹593.66 lakh for the year, compared to ₹279.01 lakh in the prior year. Total revenue from operations for FY26 stood at ₹697.09 lakh, a decrease from ₹769.36 lakh in FY25. For the quarter ended March 31, 2026, the company reported a net loss of ₹277.14 lakh, widening from the loss of ₹263.77 lakh in the corresponding quarter of the previous year. Total expenses for the year rose to ₹826.71 lakh from ₹528.66 lakh in the previous year.

Key Financial Results for FY26

Particulars	Year Ended March 31, 2026 (₹ in Lakhs)	Year Ended March 31, 2025 (₹ in Lakhs)
Total Revenue from Operations	697.09	769.36
Total Expenses	826.71	528.66
Net Profit/(Loss) for the year	(71.46)	357.98
Basic Earnings Per Share (EPS)	(2.38)	11.93

The board also approved the appointment of Dr. D. Nageswara Rao as the non-executive Chairman of the Board and Smt. M. Madhavi Latha as the Chief Financial Officer (CFO), effective May 28, 2026. Additionally, M/s. M. Bhaskara Rao & Co, Chartered Accountants, were appointed as the Internal Auditor for the financial year 2026-27.

Asset and Liability Position

The company’s total assets as of March 31, 2026, stood at ₹5,981.79 lakh, slightly lower than ₹6,143.19 lakh in the previous year. Investments constituted the largest portion of financial assets at ₹5,271.02 lakh. Equity share capital remained unchanged at ₹300.00 lakh. The statutory auditors, M/s. Brahmayya & Co, issued an unmodified opinion on the standalone audited financial results.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.49%	-0.28%	-5.31%	-3.56%	-33.53%	+77.01%

Lakshmi Finance & Industrial Corporation Ltd reported a net loss of ₹71.46 lakh for the financial year ended March 31, 2026, a significant reversal from the net profit of ₹357.98 lakh recorded in the previous year. The company’s total revenue from operations for FY26 stood at ₹697.09 lakh, down from ₹769.36 lakh in FY25, primarily impacted by a net loss on fair value changes amounting to ₹593.66 lakh. Despite the annual loss, the board has recommended a dividend of ₹2.50 per share, subject to shareholder approval at the upcoming Annual General Meeting.

The Board of Directors, in its meeting held on May 28, 2026, approved the audited financial results and appointed Dr. D. Nageswara Rao as the non-executive Chairman of the Board. Additionally, Smt. M. Madhavi Latha was appointed as the Chief Financial Officer effective May 28, 2026. The firm M/s. M. Bhaskara Rao & Co, Chartered Accountants, was appointed as the Internal Auditor for the financial year 2026-27.

Financial Performance

The company’s financial results for the quarter and year ended March 31, 2026, were audited by M/s. Brahmayya & Co, Chartered Accountants, who issued an unmodified opinion. However, the statutory auditors initially made an inadvertent error in the audit report by mentioning the name of another entity, "Incon Engineers Limited," instead of Lakshmi Finance & Industrial Corporation Ltd. This error has since been rectified, and a revised audit report was submitted to the exchanges.

The following table summarizes the key financial metrics for the quarter and year ended March 31, 2026:

Particulars	For the Quarter Ended March 31, 2026 (₹ in Lakhs)	For the Year Ended March 31, 2026 (₹ in Lakhs)
Total Revenue from Operations	200.18	697.09
Total Expenses	673.82	826.71
Profit/(Loss) before Tax	(470.14)	(125.04)
Net Profit/(Loss) for the period	(277.14)	(71.46)
Earnings per share (Basic)	(9.24)	(2.38)

Operational and Regulatory Disclosures

The company stated that it is primarily engaged in financial activities, specifically portfolio investments, and therefore has no reportable business segments as per Ind AS-108. In a regulatory filing, Lakshmi Finance disclosed that it had no outstanding qualified borrowings or incremental qualified borrowings as on March 31, 2026. The Minimum Alternative Tax (MAT) credit of ₹139.30 lakhs was not recognized in the books due to the absence of convincing evidence that the company will pay normal income tax in the near future.

The assets of the company as of March 31, 2026, totaled ₹5,981.79 lakh, a decrease from ₹6,143.19 lakh in the previous year. Investments constituted the largest component of financial assets at ₹5,271.02 lakh. The net cash flow from operating activities was negative at ₹1,61,46,412, while investing activities resulted in a positive net cash flow of ₹2,23,40,080 for the year.