Ontic Finserve Limited reported a net profit of ₹54.17 lakh for FY26, a sharp decline from ₹131.34 lakh in FY25. Revenue from operations dropped nearly 50% to ₹96.18 lakh, reflecting weaker trading volumes in financial services.

The Board of Directors approved the annual report and a scheme for the reduction and consolidation of share capital on September 4, 2026. An Annual General Meeting (AGM) is scheduled for September 30, 2026, to seek shareholder approval for the restructuring.

Financial Performance

The company’s total income fell to ₹109.42 lakh from ₹202.23 lakh in the previous year. While other income rose slightly to ₹13.23 lakh from ₹12.07 lakh, the decline in revenue from operations drove the overall contraction. Total expenses increased to ₹36.20 lakh from ₹22.82 lakh, primarily due to higher employee benefits and miscellaneous expenses.

Despite the lower profit, the company generated positive operating cash flow of ₹54.83 lakh, compared to ₹123.66 lakh in FY25. Cash and cash equivalents rose significantly to ₹25.91 lakh from ₹3.45 lakh.

Capital Restructuring Scheme

The approved scheme aims to eliminate accumulated losses by reducing paid-up equity share capital from ₹9,00,03,000 to ₹90,00,300. This involves cancelling 8,10,02,700 equity shares, aggregating ₹8,10,02,700, which will be used to offset accumulated losses.

Following the reduction, shares will be consolidated at a ratio of 10:1. The face value will increase from ₹1 to ₹10, resulting in 9,00,030 fully paid-up equity shares. The total post-consolidation paid-up capital will remain ₹90,00,300. The company stated that the rights of promoter and public shareholders will remain unchanged, with no alteration in the shareholding pattern.

AGM and Regulatory Approvals

The AGM will be held on September 30, 2026, at 1:00 pm at the registered office in Ahmedabad. Share transfer books will remain closed from September 23, 2026, to September 30, 2026. Remote e-voting will be available from September 27, 2026, to September 29, 2026.

The scheme requires approval from shareholders and the Ahmedabad Bench of the National Company Law Tribunal (NCLT). The company confirmed that no specific observation or permission from BSE or SEBI is required under Regulation 37(6)(b) of the SEBI LODR Regulations, 2015, as the scheme solely provides for writing off accumulated losses against share capital on a pro-rata basis.

What the Numbers Show

The proposed capital reduction of ₹8,10,02,700 represents approximately 90% of the pre-reduction paid-up capital. By offsetting this amount against accumulated losses, the company aims to reset its equity base. The subsequent 10:1 consolidation reduces the total number of outstanding shares by 99%, from 9,00,03,000 to 9,00,030, while maintaining the same total equity value per shareholder proportionally. This move simplifies the capital structure without involving any cash outflow.

Ontic Finserve appointed PCS Jitendra Parmar as its secretarial auditor for the financial year 2025-26. The company’s board of directors approved the appointment during a meeting held on August 31, 2026.

The meeting commenced at 12:30 pm and concluded at 1:00 pm at the company’s registered office. The decision aligns with regulatory requirements under Regulation 30 of the SEBI (LODR) Regulations, 2015.

Board Meeting Outcome

The sole agenda item addressed during the session was the statutory appointment of the secretarial auditor. The board formally resolved to appoint PCS Jitendra Parmar to oversee compliance and governance matters for the upcoming fiscal year.

The company filed the outcome with the Department of Corporate Services at the Bombay Stock Exchange Ltd. following the conclusion of the meeting.