Sanchay Finvest Limited reported a net loss of ₹35.63 lakh for the quarter ended June 30, 2026 (Q1FY26), narrowing from the ₹41.91 lakh loss in the fourth quarter of FY26. The Mumbai-based share broking firm saw its revenue from operations turn negative at ₹(17.33) lakh, compared to ₹0.84 lakh in the prior quarter. Despite operational headwinds, the overall loss position improved sequentially due to lower employee benefit costs and reduced other expenses. In a separate development, the Board recommended the appointment of Ms. Shravan A Gupta & Associates as the Company’s Secretarial Auditor for five consecutive years, commencing from FY27 till FY31, subject to shareholder approval at the ensuing Annual General Meeting.

The Board of Directors approved the unaudited financial results during a meeting held on August 4, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The appointment of the secretarial auditor was disclosed under Regulation 30 of the Listing Regulations, read with Clause 7 of SEBI Circular SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023, and SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Financial Performance

The company’s financial statement reflects continued volatility in its core operations. Revenue from operations was negative at ₹(17.33) lakh in Q1FY26, a sharp decline from the positive ₹0.84 lakh reported in Q4FY26. Other income contributed ₹0.42 lakh, down from ₹0.90 lakh in the previous period. Total expenses stood at ₹22.71 lakh, comprising ₹2.54 lakh in employee benefits, ₹0.66 lakh in depreciation, and ₹19.51 lakh in other expenses.

Earnings per share (basic and diluted) were ₹(0.45) for the quarter, compared to ₹(1.33) in Q4FY26 and ₹(1.09) in Q1FY25. The paid-up equity share capital increased to ₹80.00 lakh from ₹31.50 lakh in the previous quarter, following a preferential allotment of 48.50 lakh equity shares to non-promoter investors in April 2026.

Auditor Concerns and Compliance Issues

Statutory auditors Jain Jagawat Kamdar & Co issued a limited review report with several emphasis-of-matter paragraphs highlighting material compliance risks. The auditors noted that the company has not paid preference share dividends at the agreed rate to 40,000 preference shareholders and has not redeemed the 12% Redeemable Non-Cumulative Preference Shares due since October 2024. This indicates potential non-compliance with the terms of issue, which may have regulatory implications.

Furthermore, the auditors drew attention to outstanding dues with the National Stock Exchange (NSE). As of March 31, 2026, NSE records showed dues aggregating to ₹28.39 lakh. Following reconciliation, ₹3.69 lakh was adjusted by the exchange, and the company paid ₹22.50 lakh on May 6, 2026, after receiving a notice on May 4, 2026. The auditors also stated that the company lacks an appropriate system for obtaining confirmations and reconciling balances of deposits, advances, and receivables, limiting their ability to determine the impact on financial results. Additionally, the classification of trade payables into MSME and others was based solely on management assessment without supporting audit evidence.

Sanchay Finvest reported a widened net loss of ₹141.40 lakh for the financial year ended March 31, 2026, compared to a loss of ₹29.20 lakh in the previous year, primarily due to extraordinary items and operational expenses. The board approved the audited financial results on May 28, 2026, alongside the appointment of a new internal auditor and the acceptance of the secretarial auditor's resignation. The statutory auditor, M/s Jain Jagawat Kamdar & Co., issued an audit report with an unmodified opinion but drew attention to significant compliance and internal control deficiencies.

Financial Performance

The company recorded a total revenue of ₹62.46 lakh for FY26, a decline from ₹111.71 lakh in the previous year. Total expenses for the year stood at ₹83.55 lakh. The bottom line was significantly impacted by extraordinary items amounting to ₹8.11 lakh, which included a demand notice of ₹47.88 lakhs from the National Stock Exchange of India Limited towards penalties and interest for non-compliances observed during an inspection for the period April 1, 2023, to March 31, 2024.

For the quarter ended March 31, 2026, the company reported a net loss of ₹41.91 lakh. Revenue from operations for the quarter was ₹0.84 lakh, while other income contributed ₹0.90 lakh. The board also noted that the company wrote off current assets and investments totaling ₹1.81 lakhs during the quarter.

Auditor Observations and Governance

The statutory auditor highlighted several material matters in the report. It noted that the company has not paid preference share dividends at the agreed rate, has not paid all shareholders, and has not renewed or redeemed preference shares post their due date, indicating potential non-compliance with terms of issue. Additionally, the auditor pointed out that the company lacks an appropriate system for obtaining confirmations and performing reconciliations of balances for deposits, advances, and other receivables or payables, limiting the ability to determine the impact on financial results.

The company also faced outstanding dues of ₹28.39 lakhs as at March 31, 2026, as reflected in the National Stock Exchange's financial status report. Of this amount, dues totaling ₹22.50 lakhs were paid on May 6, 2026, following a notice received on May 4, 2026.

Board Appointments

In governance changes, the board accepted the resignation of Mr. Ramesh Chandra Mishra from M/s Ramesh Chandra Mishra & Associates as Secretarial Auditor effective from the close of business hours on May 28, 2026, due to other professional commitments. Concurrently, the board appointed M/s. S K B J P & Co. Chartered Accountants as the Internal Auditor for the financial year 2026-27 to comply with the Companies Act, 2013 and SEBI regulations.