Morarka Finance Limited reported a net profit of ₹37.85 lakh for the quarter ended June 30, 2026, a significant increase from ₹13.96 lakh in the corresponding period of the previous year. The surge in profitability was primarily driven by a sharp rise in revenue, which reached ₹58.18 lakh compared to ₹29.47 lakh in Q1FY26. The board approved the unaudited financial results during a meeting held on July 21, 2026.

Revenue growth was led by dividend income, which surged to ₹29.44 lakh from ₹1.02 lakh in the prior year. Other key income components included fees and commission income at ₹9.75 lakh and rental income at ₹3.87 lakh. Net gain on fair value changes contributed ₹14.82 lakh to the top line. Total income for the quarter stood at ₹58.18 lakh, matching the revenue from operations as other income was nil.

The company effectively managed its expenses, which decreased to ₹12.49 lakh from ₹14.81 lakh in the same quarter last year. Employee benefits expense was recorded at ₹6.14 lakh, while other expenses stood at ₹6.36 lakh. Consequently, profit before tax for the period rose to ₹45.69 lakh from ₹14.66 lakh in the previous year.

The statutory auditors, M/s. Jayesh Dadia & Associates LLP, provided a limited review report confirming the results. The earnings per share (EPS) for the quarter increased to ₹0.84 from ₹0.31 in the same quarter of the previous year. The paid-up equity share capital remained constant at ₹450.21 lakh.

Financial Performance Summary

Morarka Finance Limited appointed Mr. Pranay G. Morarka as Managing Director for a five-year term effective from April 24, 2026, to April 23, 2031, at its 41st Annual General Meeting held on July 15, 2026. The appointment, subject to necessary approvals including the Reserve Bank of India (RBI), elevates Mr. Morarka from his previous role as Managing Director (Additional) and CEO. Shareholders approved the resolution with 100% of the votes polled, securing 2,535,459 votes in favour. The meeting also ratified the declaration of a dividend for the financial year ended March 31, 2026, and the adoption of the audited financial statements for FY26.

Key Resolutions Passed

The meeting, conducted via video conferencing, saw the adoption of audited financial statements for FY26 and the ratification of a related party transaction with Dwarikesh Sugar Industries Limited. Shareholders also re-appointed Ms. Priyanka G. Morarka as Director and approved the remuneration for the new Managing Director. All resolutions were passed with the requisite majority.

Director Profile and Relationships

Mr. Pranay G. Morarka holds a Bachelor of Mass Media degree from the University of Mumbai. He is the son of Shri Gautam R. Morarka, the Chairman of the meeting, and the brother of Ms. Priyanka G. Morarka. The company affirmed that he is not debarred from holding the office of Director by SEBI or any other authority.

Procedural Compliance

The proceedings were compliant with the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. Shri Vijay Kumar Mishra of M/s. VKM & Associates served as the Scrutinizer for the e-voting process, which was available from July 12 to July 14, 2026. A total of 87 members participated in the voting process.