Nexome Capital profit flat as other income offsets revenue drop

scanx
Reviewed by
Ashish TScanX News Team
Key Highlights

Nexome Capital Markets Limited reported a standalone net profit of ₹127.45 lakhs for Q1FY27, a slight 0.4% decline from the previous year. The stability in profits occurred despite an 81.8% drop in core operating revenue to ₹302.71 lakhs, driven by a significant 437% increase in other income to ₹424.26 lakhs. Consolidated net profit was ₹124.51 lakhs. The company also completed a rights issue raising ₹2,203.875 lakhs and converted warrants worth ₹921.60 lakhs into equity shares.

powered bylight_fuzz_icon
47988737

*this image is generated using AI for illustrative purposes only.

Nexome Capital Markets Limited reported a standalone net profit of ₹127.45 lakhs for the quarter ended June 30, 2026 (Q1FY27), marking a marginal 0.4% decline from the ₹127.95 lakhs recorded in Q1FY26. Despite an 81.8% contraction in core operating revenue to ₹302.71 lakhs, the company’s bottom line remained stable due to a significant surge in non-operating income. This resilience highlights a shifting earnings composition where normalization in investment banking activities was counterbalanced by substantial gains in other income, shielding the net profit from the operational downturn.

The Board of Directors approved the unaudited financial results on August 11, 2026. Statutory auditors S K Agrawal and Co Chartered Accountants LLP issued a limited review report with an unmodified opinion on both standalone and consolidated results. The filing was submitted pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Additionally, the Board reviewed the Monitoring Agency Report regarding the utilization of proceeds from the company’s rights issue, approving management’s comments on the findings. The Board also adopted a comprehensive Corporate Social Responsibility (CSR) Policy and Annual Action Plan for FY27.

Financial Performance Highlights

Metric Q1FY27 (₹ Lakhs) Q1FY26 (₹ Lakhs) Change
Net Sales/Income 302.71 1,665.65 -81.8%
Other Income 424.26 78.99 +437.0%
Total Income 726.97 1,744.64 -58.3%
Total Expenses 558.34 1,546.78 -63.9%
Net Profit After Tax 127.45 127.95 -0.4%
EPS (Basic & Diluted) ₹1.22 ₹2.18 -44.0%

Consolidated net profit stood at ₹124.51 lakhs for the quarter, compared to ₹126.75 lakhs in Q1FY26. Consolidated total income was ₹727.66 lakhs, down from ₹1,748.93 lakhs in the previous year. The subsidiaries, Nexome Capital Services Limited and Nexome Wealth Management Limited, contributed minimal revenue of ₹0.69 lakhs but incurred a net loss of ₹2.95 lakhs during the period.

Capital Raise and Equity Movements

The auditor’s report highlighted key capital movements. In March 2026, the company completed a rights issue of 29.39 lakhs equity shares at ₹75 per share, raising ₹2,203.875 lakhs. The proceeds were fully received, and shares were allotted on March 24, 2026. Furthermore, the company converted 19.2 lakhs Equity Convertible Warrants into equity shares on April 20, 2026, upon receipt of the balance consideration of ₹921.60 lakhs. These newly issued shares rank pari-passu with existing equity shares.

What the Numbers Show

The divergence between operating revenue and other income is notable. While revenue from operations plummeted by over 80%, other income surged to ₹424.26 lakhs from ₹78.99 lakhs in Q1FY26. This suggests that while core business operations faced a cyclical downturn, non-operating gains provided a buffer to net profit figures. The company maintained an ad hoc provision of 6% on its outstanding loan portfolio, totaling ₹169.33 lakhs as of June 30, 2026, with a reversal of ₹24.92 lakhs credited to the profit and loss statement during the quarter.

Historical Stock Returns for Nexome Capital Markets

1 Day5 Days1 Month6 Months1 Year5 Years
-0.50%-9.19%-16.72%+29.68%-32.02%+138.76%

How sustainable is the reliance on non-operating income to offset the 81.8% contraction in core operating revenue for future quarters?

What specific strategies is Nexome Capital employing to revitalize its investment banking activities and restore organic revenue growth?

How will the ₹2,203.875 lakhs raised from the recent rights issue be deployed to improve operational efficiency or expand market share?

like20
dislike

Nexome Capital Markets approves ₹1.50 dividend, extends MD tenure

scanx
Reviewed by
Jubin VScanX News Team
Key Highlights

Nexome Capital Markets Ltd concluded its 43rd AGM on August 11, 2026, approving a ₹1.50 dividend and key governance changes. Shareholders reappointed Saharsh Parekh and allowed Managing Director Kishor Shah to continue beyond age 70 until March 2027. Promoters showed strong support with 92.89% turnout, while institutional investors did not vote.

powered bylight_fuzz_icon
48008531

*this image is generated using AI for illustrative purposes only.

Nexome Capital Markets Ltd ( nexome capital markets ) shareholders approved a final dividend of ₹1.50 per equity share for FY26 at the company’s 43rd Annual General Meeting held on August 11, 2026. The meeting, conducted via Video Conferencing (VC) and Other Audio-Visual Means (OAVM) in compliance with Ministry of Corporate Affairs Circular No. 03/2025 and SEBI guidelines, also saw the reappointment of Saharsh Parekh as a director and the continuation of Kishor Shah as Managing Director beyond the age of 70. All four resolutions proposed were passed by the requisite majority, ensuring leadership continuity and confirming the payout for eligible shareholders holding shares as of the record date.

The voting process was scrutinized by Sudhansu Sekhar Panigrahi, Practicing Company Secretary, in compliance with Section 108 of the Companies Act, 2013 and Regulation 44 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Remote e-voting remained open from August 8 to August 10, 2026. The statutory auditor, M/s S. K. Agrawal & Co, Chartered Accountants LLP, presented its report on the financial statements for the year ended March 31, 2026.

Voting Results and Shareholder Participation

Promoter participation was high, with 5,561,364 shares held and 5,165,764 votes polled (92.89% turnout). Public Non-Institutional shareholders polled 2,171,273 votes out of 4,792,136 shares held (45.31% turnout). Public Institutional shareholders, holding 382,000 shares, did not cast any votes. For Resolution No. 2 (reappointment of Saharsh Parekh), promoter votes were excluded due to conflict of interest, leaving the decision primarily to public non-institutional voters who supported it with 99.96% approval.

Resolution Category Votes in Favour Votes Against % Support
Adoption of Financials Promoter 5,165,764 Nil 100%
Reappointment of S. Parekh Public Non-Inst. 2,170,446 827 99.96%
Dividend Declaration Promoter 5,165,764 Nil 100%
Continuation of K. Shah Public Non-Inst. 2,170,446 827 99.96%

Dividend and Governance Details

The final dividend of ₹1.50 per equity share (face value ₹10) is subject to tax deduction at source (TDS) as per the Income Tax Act, 2025. Payments will be made electronically within 30 days of the AGM date, i.e., by September 10, 2026. Shareholders are advised to update KYC details with Maheshwari Datamatics Pvt. Ltd., the Registrar and Transfer Agent, or their Depository Participants. Physical shareholders must submit Form 121 or DTAA documents if eligible for tax exemptions.

Kishor Shah’s continuation as Managing Director was approved under Section 196(3) read with Sections 196, 197, 198, 203, Schedule V of the Companies Act, 2013, and the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. His tenure extends until March 31, 2027, on existing terms and conditions, following recommendation by the Nomination and Remuneration Committee and approval by the Board on May 25, 2026.

What the Numbers Show

The high promoter participation (92.89%) contrasted with zero institutional voting suggests that governance decisions, including the dividend policy and leadership continuity, were driven primarily by promoter interests and retail alignment. The exclusion of promoter votes from the reappointment resolution highlights standard compliance practices for interested directors, while the near-unanimous support from public non-institutional shareholders indicates strong backing for the current management structure.

Historical Stock Returns for Nexome Capital Markets

1 Day5 Days1 Month6 Months1 Year5 Years
-0.50%-9.19%-16.72%+29.68%-32.02%+138.76%

How might the zero voting participation from institutional shareholders impact Nexome Capital's future capital raising efforts or investor relations strategy?

What are the potential risks or benefits for the company's strategic agility with Kishor Shah continuing as Managing Director beyond the age of 70?

Does the ₹1.50 dividend payout ratio suggest a shift in capital allocation priorities, and how does this compare to industry peers in FY26?

like15
dislike

More News on Nexome Capital Markets

1 Year Returns:-32.02%