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.

Real Touch Finance Ltd has identified three individuals for appointment as Directors on its Board, subject to the approval of the Reserve Bank of India (RBI). The Board of Directors approved the identification of Angalappan Anandakumar, Suriyanarayanan Meenakshi Sundaram, and Ganesan Magesh Kumar as proposed Directors during its meeting held on June 26, 2026. The appointments are contingent upon prior regulatory clearance, following which the company will seek shareholder approval.

The Nomination and Remuneration Committee evaluated and recommended the candidates. The company will file an application on the RBI's "PRAVAAH" Portal to facilitate the approval process. These appointments are governed by Chapter III of the RBI (Non-Banking Financial Companies - Governance) Directions, 2025.

Concurrently, the Board accepted the resignation of Non-Executive Director Sundaresan Sampathkumar. His resignation is effective from the close of business hours on June 25, 2026, due to personal and professional commitments. Sampathkumar confirmed there are no material reasons for his departure beyond those stated in his resignation letter.

Board Changes

The following table details the recent changes in the company's Board composition:

The company will make the necessary disclosures to the stock exchanges regarding these appointments once they become effective, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.