Real Touch Finance Limited received regulatory clearance from the Reserve Bank of India (RBI) on August 05, 2026, appointing Angalappan Anandakumar as a director for a five-year term ending July 31, 2031. The approval follows a Board of Directors meeting held on June 26, 2026, where the company sought prior consent for three new director appointments. While the RBI sanctioned Anandakumar’s tenure, it rejected the proposals for Suryanarayanan Meenakshi Sundaram and Ganesan Mageshkumar, meaning their appointments will not proceed. This selective approval ensures continuity in governance while highlighting the regulator’s stringent scrutiny of board composition for non-banking financial companies. The company disclosed these developments under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The RBI’s decision letter, reference number KOL.DOR.NO.S 915/01-01-005/2026-27, explicitly grants approval only for Anandakumar. The rejection of the other two candidates indicates a targeted regulatory stance rather than a blanket endorsement of the board’s expansion plans. Shareholders and investors should note that only one-third of the proposed additions have been validated by the central bank.

Appointment Details

Regulatory Compliance

The intimation was issued pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with applicable SEBI Circulars. Varsha Gupta, Company Secretary of Real Touch Finance Limited , signed the disclosure filed with BSE Limited. The company’s registered office is located in Howrah, West Bengal, with a corporate branch in Chennai, Tamil Nadu.

Real Touch Finance reported a contraction in both revenue and profit for the quarter ended June 30, 2026, signaling operational headwinds amid a challenging credit environment. The small finance lender’s net profit after tax (PAT) declined 14% year-on-year to ₹1.16 crore, down from ₹1.34 crore in Q1FY26. Revenue from operations also slipped 5.5% to ₹8.63 crore, compared to ₹8.18 crore in the prior-year quarter, indicating reduced top-line momentum.

The results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on July 31, 2026. The unaudited financials were subjected to limited review by the statutory auditors and disclosed pursuant to Regulation 30 and Regulation 47 of the Securities and Exchange Board of India (Listing Obligations and Disclosures Requirements) Regulations, 2015. The newspaper advertisement of the results was published in Arthik Lipi (Bengali) and The Echo of India (English).

Financial Performance Snapshot

Despite the quarterly dip, the company posted a sequential improvement in PAT, rising 19.5% quarter-on-quarter to ₹1.16 crore from ₹96.78 lakh in March 2026. However, the annualized view shows a significant moderation, with full-year FY26 PAT standing at ₹5.19 crore against the current quarterly run rate.

Balance Sheet and Capital Structure

The company’s capital structure remains heavily leveraged. Paid-up debt capital stood at ₹247.06 crore as of June 30, 2026, a slight reduction from ₹253.99 crore at the end of FY26. This decline helped bring the debt-equity ratio down to 4.62 from 4.91 in the previous quarter, though it remains significantly higher than the 3.19 recorded in Q1FY26. Net worth increased marginally to ₹53.43 crore from ₹52.27 crore, supported by retained earnings.

Reserves (excluding revaluation reserve) grew to ₹33.73 crore from ₹32.58 crore, reflecting the accumulation of profits despite the lower current-quarter earnings. The securities premium account remained unchanged at ₹7.00 crore.

What the Numbers Show

The divergence between the sequential profit recovery and the year-on-year decline highlights the volatility in Real Touch Finance’s earnings profile. While the debt-equity ratio improved slightly on a quarterly basis, the persistent leverage above 4.5x suggests limited financial flexibility for aggressive asset growth without raising additional equity. The 5.5% revenue contraction indicates that loan book expansion or yield realization may have faced constraints during the period, warranting close monitoring of credit quality metrics in subsequent filings.