Morgan Ventures FY26 Results: Net profit plunges 84% YoY

Morgan Ventures reported a steep decline in profitability for FY26, with net profit after tax (PAT) falling 83.9% year-on-year to ₹41,444.05 lakh from ₹2,56,182.59 lakh in the previous fiscal. Revenue from operations also contracted by 32.4% to ₹3,06,528.01 lakh, down from ₹4,53,110.56 lakh. The company’s 39th Annual General Meeting is scheduled for September 02, 2026, to approve these financials. The drop in earnings reflects a challenging environment for its core investment activities, where unrealized gains significantly moderated compared to the prior year’s surge.

The filing, submitted pursuant to Regulation 34(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, details the financial performance and corporate governance updates. Statutory auditor D H A & Co. issued an unqualified opinion but included an emphasis of matter regarding a legal dispute over land assets valued at ₹20.02 crore. The Maharashtra Industrial Development Corporation (MIDC) has revoked lease rights for plots in Chikalthana, though the Bombay High Court has granted interim relief allowing the company to retain physical possession pending final adjudication.

Financial Performance

Total income stood at ₹3,06,528.01 lakh, compared to ₹4,67,028.06 lakh in FY25. The decline was largely attributable to a reduction in net gains on fair value changes of financial instruments, which dropped to ₹2,24,116.28 lakh from ₹3,59,594.04 lakh. Interest income also decreased to ₹73,739.40 lakh from ₹89,710.17 lakh. Conversely, total expenses rose sharply to ₹2,23,500.44 lakh from ₹1,36,216.16 lakh, driven primarily by higher finance costs of ₹1,63,482.68 lakh, up from ₹1,22,961.14 lakh.

Metric	FY26 (₹ lakh)	FY25 (₹ lakh)	Change
Revenue from Operations	3,06,528.01	4,53,110.56	-32.4%
Total Income	3,06,528.01	4,67,028.06	-34.4%
Total Expenses	2,23,500.44	1,36,216.16	+64.1%
Profit Before Tax	83,027.57	3,30,811.90	-75.0%
Net Profit After Tax	41,444.05	2,56,182.59	-83.9%

Balance Sheet and Investments

As of March 31, 2026, total assets increased to ₹31,16,393.44 lakh from ₹27,77,449.45 lakh. Investments in equity instruments and alternate investment funds remained the largest asset class at ₹27,87,092.34 lakh, up from ₹25,48,449.10 lakh. Borrowings rose to ₹19,65,688.49 lakh from ₹17,11,037.79 lakh, including a short-term loan from an NBFC secured against investments and a demand loan from related parties. The company’s capital-to-risk-weighted assets ratio (CRAR) decreased to 30% from 32%.

Corporate Governance and CSR

The Board of Directors includes Kuldeep Kumar Dhar as Managing Director, alongside independent directors Yogesh Kumar Gupta and Sanjiv Bansal. Sriniwas Chandan took over as CFO and Company Secretary effective January 01, 2026. The company spent ₹22,02,240 on Corporate Social Responsibility (CSR) activities during FY26, focusing on education, hunger eradication, and skill development. An additional ₹36,69,190 was transferred to the unspent CSR account as per Section 135(6) of the Companies Act, 2013.

What the Numbers Show

The divergence between rising expenses and falling revenue highlights a margin compression driven by financing costs. While the asset base grew through increased investments, the ability to generate proportional returns diminished as fair value gains normalized. The increase in borrowings, coupled with higher interest outflows, suggests a reliance on debt to fund the investment portfolio, which becomes riskier when market valuations stabilize or decline.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.51%	+3.04%	+5.75%	-33.26%	-56.38%	+173.53%

Morgan Ventures reported a net loss of ₹234.11 lakh for the first quarter ended June 30, 2026 (Q1FY27), compared to a net profit of ₹104.58 lakh in the same period last year. The Board of Directors approved the unaudited standalone financial results on August 7, 2026, alongside the reappointment of Kuldeep Kumar Dhar as Managing Director for a five-year term effective from August 14, 2026. This governance update coincides with significant financial headwinds, including rising interest expenses that exceeded total income during the quarter.

The company’s total income declined to ₹285.44 lakh in Q1FY27 from ₹552.53 lakh in Q1FY26, primarily due to a sharp drop in investment income and fair value gains. Expenses surged to ₹604.24 lakh from ₹486.14 lakh, driven largely by interest payments on loans which rose to ₹441.95 lakh from ₹275.64 lakh. Consequently, the operating loss before tax widened to ₹318.80 lakh from a profit of ₹66.39 lakh in the prior year period. The debt-equity ratio increased to 2.32 from 1.88, signaling heightened leverage risks.

Governance Updates

In addition to the financial results, the Board approved several key governance matters subject to shareholder approval at the 39th Annual General Meeting (AGM) scheduled for September 2, 2026. Kuldeep Kumar Dhar, who brings over five decades of experience in business development and management, was reappointed as Managing Director for a term ending August 13, 2031. The Board also recommended the reappointment of Sanjiv Bansal as an Independent Director for a second consecutive term of five years, commencing June 17, 2026.

Particulars	Details
Managing Director	Kuldeep Kumar Dhar (DIN 00299386)
Term	5 Years (Aug 14, 2026 – Aug 13, 2031)
Independent Director	Sanjiv Bansal (DIN 00417480)
Term	5 Years (Jun 17, 2026 – Jun 16, 2031)
AGM Date	September 2, 2026

The AGM will also seek approval for material related-party transactions with Morgan Securities & Credits Private Limited and Peacock Chemicals Private Limited. These transactions, involving loans, advances, and services, are capped at ₹200 crore each for the financial year 2026-27. The proposed values represent 652% of the company’s annual consolidated turnover for FY25-26, necessitating shareholder consent under Regulation 23 of the SEBI Listing Regulations.

Financial Performance Analysis

The deterioration in profitability is primarily attributable to the surge in interest costs, which consumed more than half of the total income in Q1FY27. Investment income fell sharply to ₹75.74 lakh from ₹278.42 lakh, while net gains from fair value changes of investments dropped to ₹209.70 lakh from ₹274.11 lakh. Management expenses associated with IIFL decreased to ₹155.00 lakh from ₹195.45 lakh, but this reduction was insufficient to offset the higher interest burden.

What the Numbers Show

The widening loss and increasing debt-equity ratio highlight the pressure on Morgan Ventures’ balance sheet. With interest payments exceeding operational and investment income, the company faces immediate challenges in maintaining liquidity without relying on related-party funding. The approval of large-scale related-party transactions up to ₹200 crore with group entities suggests a strategic reliance on internal capital markets to sustain operations. Investors should monitor the outcome of the ongoing legal dispute regarding land assets valued at ₹20.02 crore, which remains under litigation with the Maharashtra Industrial Development Corporation (MIDC). The resolution of this matter could impact future asset valuations and potential collateral availability.