Paragon Finance Limited's Board of Directors convened on May 14, 2026, at the company's registered office at Sikkim House, 4/1 Middleton Street, Kolkata – 700 071, and approved the audited standalone financial results for the quarter and financial year ended March 31, 2026. The meeting commenced at 1:30 PM and concluded at 3:40 PM. The results were reviewed by the Audit Committee and audited by Mandawewala & Co., Chartered Accountants (Firm Registration No. 322130E), who issued an unmodified audit opinion in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Subsequently, pursuant to Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the audited standalone financial results for the fourth quarter and financial year ended March 31, 2026, were published in Financial Express (English) and Arthik Lipi (Bengali).

Financial Performance Overview

Paragon Finance recorded a significant reversal in profitability for FY26, swinging to a net loss compared to a profit in the prior year. The company's total income from operations declined sharply, driven by negative fair value changes and other income. The table below presents the key financial highlights for the full year and the latest quarter (all figures in Rs. Lakhs):

For the full year FY26, total income from operations stood at ₹128.74 lakhs, compared to ₹279.85 lakhs in FY25. Total expenses rose to ₹244.42 lakhs from ₹226.16 lakhs, with employee benefits expense at ₹141.60 lakhs and depreciation at ₹22.86 lakhs. The net loss for FY26 was ₹111.20 lakhs, against a net profit of ₹31.46 lakhs in FY25. Basic and diluted earnings per share (EPS) for FY26 stood at ₹(2.62), compared to ₹0.74 in FY25.

Balance Sheet Highlights

The company's financial position as at March 31, 2026, reflects key movements across assets and liabilities. Total assets increased marginally to ₹3,275.58 lakhs from ₹3,212.31 lakhs as at March 31, 2025.

The loan book grew to ₹1,375.30 lakhs from ₹1,097.40 lakhs, while investments declined to ₹1,471.22 lakhs from ₹1,685.59 lakhs. Total equity decreased to ₹2,862.73 lakhs from ₹3,017.18 lakhs, reflecting the net loss for the year.

Cash Flow Summary

The cash flow statement for FY26 highlights a net decrease in cash and bank balances, primarily driven by operating activities. Net cash used in operating activities was ₹(201.55) lakhs, compared to net cash generated of ₹122.25 lakhs in FY25. Net cash from investing activities was ₹84.16 lakhs, while net cash from financing activities was ₹68.76 lakhs. Cash and bank balances at the close of the year stood at ₹104.34 lakhs, down from ₹152.97 lakhs at the beginning of the year.

Internal Auditor Appointment and Regulatory Disclosures

In addition to approving the financial results, the Board re-appointed M/s. ASRK & Associates (FRN: 328681E) as the Internal Auditor of the company for FY 2026-27. The company also disclosed that there are no outstanding defaults on loans or debt securities, with total financial indebtedness reported at nil. Related party transactions during the reporting period included director remuneration of ₹60,00,000 to Aloke KR Gupta (Director & CFO) and ₹61,56,000 to Sanjay Kumar Gupta (Whole Time Director & Company Secretary), along with various loan transactions with related parties, all conducted within the limits approved by the Audit Committee. The intimation was signed by Sanjay Kumar Gupta, Whole Time Director & Company Secretary (DIN: 00213467), on behalf of Paragon Finance Limited.

Paragon Finance Limited has submitted its quarterly compliance certificate to BSE Limited, fulfilling regulatory requirements under SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026.

Regulatory Compliance Certificate

The company filed its certificate on April 10, 2026, pursuant to Regulation 74(5) of the SEBI regulations. The submission confirms that all securities received from depository participants for dematerialization during the quarter have been duly verified and confirmed to the depositories.

Verification Process

The certificate confirms that the securities are listed on stock exchanges where the earlier securities were listed. Additionally, the security certificates received for dematerialization have been mutilated and cancelled after due verification by the depository participant.

The company has confirmed that the name of the depositories have been substituted in the register of members as the registered owner, completing the dematerialization process in accordance with regulatory requirements.

Registrar Confirmation

Niche Technologies Pvt. Ltd., serving as the company's Registrar and Transfer Agent, provided the necessary confirmation certificate dated April 6, 2026. The registrar confirmed that securities received from depository participants during Q4 FY26 were properly accepted or rejected to the depositories.

The certificate was signed by Sanjay Kumar Gupta, Director & Company Secretary of Paragon Finance Limited, and submitted to BSE Limited's Department of Corporate Services for record maintenance.