Sakthi Finance FY26 Net Profit Rises; Dividend Declared

2 min read     Updated on 25 May 2026, 01:29 PM
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Reviewed by
Naman SScanX News Team
AI Summary

Sakthi Finance reported a rise in net profit to ₹1,724.90 lakh for the year ended March 31, 2026, compared to ₹1,665.15 lakh in the previous year. Total revenue from operations was ₹21,070.54 lakh. The company announced a dividend of ₹0.80 per share and scheduled NCD redemptions for July and August 2026.

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Sakthi Finance has announced its audited financial results for the quarter and year ended March 31, 2026. The company reported a total income of ₹21,089.53 lakh for the year ended March 31, 2026, compared to ₹21,520.41 lakh in the previous year. Net profit for the period rose to ₹1,724.90 lakh, up from ₹1,665.15 lakh in the corresponding period last year.

Financial Performance

The company’s total revenue from operations for the year stood at ₹21,070.54 lakh. For the quarter ended March 31, 2026, the company reported a net profit of ₹561.77 lakh, a significant increase from ₹375.07 lakh in the quarter ended December 31, 2025. The earnings per share (EPS) for the full year was ₹2.67, compared to ₹2.57 in the prior year.

Metric Year Ended 31-Mar-2026 (₹ lakh) Year Ended 31-Mar-2025 (₹ lakh)
Total Income 21,089.53 21,520.41
Total Revenue from Operations 21,070.54 21,496.88
Net Profit 1,724.90 1,665.15
Earnings Per Share (Basic) 2.67 2.57

Dividend Declaration

The Board of Directors has recommended an equity dividend of ₹0.80 per share, which is 8 per cent on the face value of ₹10 each. The total dividend outflow aggregates to ₹517.65 lakhs, subject to Tax Deducted at Source (TDS). This declaration is subject to the approval of members at the ensuing Annual General Meeting.

NCD Redemptions

The company has scheduled the redemption of Non-Convertible Debentures (NCDs) issued under two public issues. For the NCD Public Issue 2024, the redemption is set for Thursday, July 9, 2026. This includes two options: a monthly interest option with a coupon rate of 9.00 per cent and a cumulative option with an effective yield of 9.31 per cent. The record date for this redemption has been fixed as Wednesday, June 24, 2026.

For the NCD Public Issue 2021, the redemption is scheduled for Saturday, August 29, 2026. This issue includes a monthly interest option with a coupon rate of 10.50 per cent and a cumulative option with an effective yield of 13.64 per cent. The record date for this redemption is Friday, August 14, 2026.

Asset Quality and Capital Adequacy

As of March 31, 2026, the company’s Gross Non-Performing Assets (GNPA) stood at 4.76 per cent, while Net Non-Performing Assets (NNPA) were at 2.25 per cent. The Capital Adequacy Ratio was reported at 20.45 per cent. The company confirmed that the impairment allowances made under Ind AS 109 exceed the total provisions required under IRACP norms, and consequently, no amount is required to be transferred to the impairment reserve.

Historical Stock Returns for Sakthi Finance

1 Day5 Days1 Month6 Months1 Year5 Years
-3.52%+7.42%+4.34%-26.29%-44.64%+72.92%

How might Sakthi Finance plan to deploy the capital freed up from the upcoming NCD redemptions in 2026 to sustain or accelerate loan book growth?

Given the GNPA of 4.76%, what strategic measures could Sakthi Finance adopt to bring asset quality in line with industry benchmarks over the next 12-18 months?

With total income slightly declining year-over-year, what new lending segments or geographies could Sakthi Finance target to drive meaningful revenue growth in FY2027?

Sakthi Finance appoints S Arumugam as Internal Ombudsman

1 min read     Updated on 23 May 2026, 06:19 PM
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AI Summary

Sakthi Finance Limited has appointed Sri S Arumugam as Internal Ombudsman for three years starting May 23, 2026, replacing Sri C Rajasekaran. The Board approved the appointment on March 10, 2026. Arumugam is a former company veteran with over 33 years of experience.

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sakthi finance has appointed Sri S Arumugam as its Internal Ombudsman (IO) for a period of three years. The appointment is effective from May 23, 2026. The decision was taken by the Board of Directors at their meeting held on March 10, 2026.

The appointment follows the completion of the term of the previous Internal Ombudsman, Sri C Rajasekaran. The company stated that the terms and conditions of the appointment have been mutually agreed upon. This move is in compliance with Regulation 30 of the Listing Regulations.

Appointment Details

The company has provided specific details regarding the change in the Internal Ombudsman position. The information has been disclosed in accordance with Regulations 30 and 51 of the Listing Regulations, as well as relevant SEBI master circulars.

Particulars Details
Reason for Change Appointment in place of Sri C Rajasekaran whose term of Office got completed
Date of Appointment 23 May 2026
Terms of Appointment For a period of three (3) years with effect from 23 May 2026
Relationship with Directors Not related to any of the Directors of the Company

Profile of Sri S Arumugam

Sri S Arumugam brings significant experience to the role, having previously worked with Sakthi Finance Limited for over three decades. He is a graduate with a B.A. in Corporate studies and holds a Post Graduate Diploma in Industrial Relations and Personnel Management.

His work experience includes a tenure at Transport Corporation of India Limited from 1983 to 1988. Subsequently, he served Sakthi Finance Limited from July 1988 until his retirement in September 2021. During his long tenure with the company, he held various positions across branches in Namakkal, Salem, Chennai, and Coimbatore, rising to the rank of Deputy General Manager in the Credit Department.

Historical Stock Returns for Sakthi Finance

1 Day5 Days1 Month6 Months1 Year5 Years
-3.52%+7.42%+4.34%-26.29%-44.64%+72.92%

How might Sri S Arumugam's three-decade insider experience at Sakthi Finance influence the objectivity and independence expected of an Internal Ombudsman role?

What impact could this leadership transition in the grievance redressal mechanism have on Sakthi Finance's customer complaint resolution timelines and satisfaction rates?

How is SEBI likely to strengthen regulations around Internal Ombudsman appointments to ensure greater independence from former employees of the same organization?

More News on Sakthi Finance

1 Year Returns:-44.64%