Sangam Finserv FY26 Net Profit Falls to Rs 325.76 Lakh
Sangam Finserv reported a 50.6% decline in FY26 net profit to Rs 325.76 lakh, driven by higher finance costs and fair value losses. Q4 FY26 recorded a net loss of Rs 547.98 lakh. The company has published the audited results in newspapers and re-appointed auditors.

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Sangam Finserv Limited announced its audited standalone financial results for the quarter and year ended March 31, 2026. The Board of Directors approved the results during a meeting held on May 13, 2026. The company has submitted the newspaper clippings of these audited financial results to the stock exchanges, confirming publication in Business Standard and Parthakal on May 14, 2026. The auditor's report carries an unmodified opinion, confirming the results present a true and fair view in conformity with applicable Indian Accounting Standards (Ind AS).
Annual Financial Performance
For the financial year ended March 31, 2026, Sangam Finserv reported a significant decline in profitability. Total income stood at Rs 1,562.56 lakh, down from Rs 1,701.48 lakh in the previous year. Net profit for the year fell sharply to Rs 325.76 lakh from Rs 659.72 lakh in FY25. The decline was driven by a net loss on fair value changes of Rs 285.81 lakh against Rs 158.44 lakh in the prior year, alongside higher finance expenses of Rs 332.18 lakh compared to Rs 239.09 lakh previously. Total expenses rose to Rs 1,066.95 lakh from Rs 781.16 lakh, while profit before tax declined to Rs 495.61 lakh from Rs 920.32 lakh.
| Metric: | FY26 (Audited) | FY25 (Audited) |
|---|---|---|
| Interest Income: | Rs 1,666.36 lakh | Rs 1,752.93 lakh |
| Fees & Commission Income: | Rs 168.37 lakh | Rs 106.99 lakh |
| Net Gain/(Loss) on Fair Value Changes: | Rs (285.81) lakh | Rs (158.44) lakh |
| Total Revenue from Operations: | Rs 1,548.92 lakh | Rs 1,701.48 lakh |
| Other Income: | Rs 13.64 lakh | — |
| Total Income: | Rs 1,562.56 lakh | Rs 1,701.48 lakh |
| Finance Expenses: | Rs 332.18 lakh | Rs 239.09 lakh |
| Impairment on Financial Instruments: | Rs 95.45 lakh | Rs 7.43 lakh |
| Employee Benefits Expense: | Rs 268.23 lakh | Rs 200.90 lakh |
| Depreciation & Amortisation: | Rs 14.20 lakh | Rs 17.47 lakh |
| Other Expenses: | Rs 356.89 lakh | Rs 316.27 lakh |
| Total Expenses: | Rs 1,066.95 lakh | Rs 781.16 lakh |
| Profit Before Tax: | Rs 495.61 lakh | Rs 920.32 lakh |
| Net Profit: | Rs 325.76 lakh | Rs 659.72 lakh |
| Total Comprehensive Income: | Rs 320.06 lakh | Rs 645.29 lakh |
| Basic EPS (Rs): | Rs 0.70 | Rs 1.42 |
| Diluted EPS (Rs): | Rs 0.70 | Rs 1.42 |
Quarterly Performance
For the quarter ended March 31, 2026, the company reported a net loss of Rs 547.98 lakh, compared to a net loss of Rs 170.77 lakh in the corresponding quarter of the previous year. Total income for the quarter was negative at Rs (98.28) lakh, primarily due to a net loss on fair value changes of Rs (581.68) lakh. Total expenses for the quarter stood at Rs 355.71 lakh, resulting in a loss before tax of Rs (453.99) lakh.
| Metric: | Q4 FY26 (Audited) | Q3 FY26 (Unaudited) | Q4 FY25 (Audited) |
|---|---|---|---|
| Total Income: | Rs (98.28) lakh | Rs 443.50 lakh | Rs 90.97 lakh |
| Total Expenses: | Rs 355.71 lakh | Rs 244.47 lakh | Rs 257.70 lakh |
| Profit/(Loss) Before Tax: | Rs (453.99) lakh | Rs 199.03 lakh | Rs (166.72) lakh |
| Net Profit/(Loss): | Rs (547.98) lakh | Rs 128.58 lakh | Rs (170.77) lakh |
| Basic EPS (Rs): | Rs (1.18) | Rs 0.28 | Rs (0.37) |
Balance Sheet Highlights
As of March 31, 2026, total assets grew to Rs 19,142.46 lakh from Rs 16,159.24 lakh in the previous year, reflecting a significant increase in investments to Rs 7,714.08 lakh from Rs 3,637.11 lakh. However, loans declined to Rs 9,708.44 lakh from Rs 10,719.40 lakh. On the liabilities side, borrowings rose substantially to Rs 5,397.90 lakh from Rs 2,676.25 lakh. Equity share capital remained unchanged at Rs 4,661.28 lakh, while other equity increased to Rs 8,978.94 lakh from Rs 8,658.88 lakh.
| Balance Sheet Item: | Mar 31, 2026 (Audited) | Mar 31, 2025 (Audited) |
|---|---|---|
| Cash & Cash Equivalents: | Rs 479.26 lakh | Rs 481.56 lakh |
| Loans: | Rs 9,708.44 lakh | Rs 10,719.40 lakh |
| Investments: | Rs 7,714.08 lakh | Rs 3,637.11 lakh |
| Total Assets: | Rs 19,142.46 lakh | Rs 16,159.24 lakh |
| Borrowings: | Rs 5,397.90 lakh | Rs 2,676.25 lakh |
| Equity Share Capital: | Rs 4,661.28 lakh | Rs 4,661.28 lakh |
| Other Equity: | Rs 8,978.94 lakh | Rs 8,658.88 lakh |
Cash Flow Summary
The company generated net cash from operating activities of Rs 1,529.36 lakh for the year ended March 31, 2026, compared to Rs 2,881.38 lakh in the previous year. Cash used in investing activities stood at Rs (4,253.32) lakh, primarily on account of investment purchases of Rs (4,236.10) lakh. Financing activities contributed Rs 2,721.65 lakh, driven by an increase in borrowings of Rs 2,721.65 lakh. As a result, cash and cash equivalents at the end of the year stood at Rs 479.26 lakh, compared to Rs 481.56 lakh at the beginning of the year.
| Cash Flow Item: | FY26 | FY25 |
|---|---|---|
| Net Cash from Operating Activities: | Rs 1,529.36 lakh | Rs 2,881.38 lakh |
| Net Cash from Investing Activities: | Rs (4,253.32) lakh | Rs (2,434.57) lakh |
| Net Cash from Financing Activities: | Rs 2,721.65 lakh | Rs 13.47 lakh |
| Closing Cash & Cash Equivalents: | Rs 479.26 lakh | Rs 481.56 lakh |
Auditor Appointments
The board approved the re-appointment of M/s O. P. Dad & Co., Chartered Accountants (Firm Registration No. 002330C), as Statutory Auditors for a second term of five consecutive years from FY 2026-27 to FY 2030-31, subject to shareholder approval at the ensuing Annual General Meeting. The firm will hold office from the conclusion of the 43rd Annual General Meeting until the conclusion of the 48th Annual General Meeting. Additionally, M/s NVS & Co., Chartered Accountants (FRN: 132180W), were re-appointed as Internal Auditors for the financial year 2026-27.
Historical Stock Returns for Sangam Finserv
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -4.76% | +4.52% | +31.41% | -1.23% | +439.81% |
How will Sangam Finserv's doubling of borrowings to fund its investment portfolio affect its credit ratings and future cost of capital?
What specific asset classes or securities are driving the recurring fair value losses, and could management shift its investment strategy to reduce mark-to-market volatility?
Given the sharp decline in the loan book alongside rising impairment charges, is Sangam Finserv strategically pivoting away from lending toward an investment-heavy business model?





























