Smart Finsec Limited reported a 16.8% decline in net profit to ₹97.67 lakh for the financial year ended March 31, 2026, down from ₹117.39 lakh in the previous year. The company’s revenue from operations decreased by 16.9% to ₹196.72 lakh for FY26, compared to ₹236.77 lakh in FY25. For the quarter ended March 31, 2026, net profit stood at ₹16.89 lakh, a decrease of 17.2% from ₹20.41 lakh in the corresponding quarter of the previous year. The audited standalone financial results were published in the Financial Express and Jansatta on May 26, 2026, pursuant to Regulation 30 and Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The decline in annual revenue was primarily driven by the NBFC Activity segment, which reported income of ₹167.04 lakh in FY26, down from ₹207.80 lakh in the prior year. Real Estate segment revenue remained relatively stable at ₹29.68 lakh, compared to ₹28.97 lakh in FY25. Total expenditure for the year reduced to ₹63.25 lakh from ₹86.69 lakh in the previous year.

Financial Performance

The board approved the audited standalone financial results for the quarter and year ended March 31, 2026. The statutory auditors, M/s. A. Mohan & Co., issued an unmodified opinion on the results. The company recognized a past service cost of ₹7.15 lakh during the quarter ended March 31, 2026, pursuant to the Labour Codes notification issued in November 2025.

Segment Reporting

Smart Finsec operates through two main segments: Real Estate and NBFC Activity. The NBFC segment remained the primary revenue contributor, though it saw a significant drop in profitability. The Real Estate segment reported a profit before tax of ₹29.46 lakh for FY26, while the NBFC Activity segment reported a profit before tax of ₹104.01 lakh.

Board Appointments

In a meeting held on May 25, 2026, the board approved the re-appointment of M/s. PK Mishra & Associates, Company Secretaries, as the Secretarial Auditor for the financial year 2026-27. The firm is managed by Mr. Pawan Kumar Mishra, a fellow member of the Institute of Company Secretaries of India. M/s. Sapra Associates, Chartered Accountants, was also re-appointed as the Internal Auditor for FY27. The firm, led by proprietor Mr. Ravi Sapra, has been in the profession for 34 years.

Smart Finsec Limited has disclosed its exemption from submitting details on related party transactions to BSE Limited, citing specific thresholds under SEBI regulations. The company stated that compliance with certain corporate governance provisions, including Regulation 23, does not apply to listed entities meeting specific financial criteria. This regulatory exemption impacts the level of disclosure the company must provide regarding transactions with related parties.

The exemption is granted under Regulation 15(2) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. This regulation specifies that entities with a paid-up equity share capital not exceeding Rs 10 crore and a net worth not exceeding Rs 25 crore as on the last day of the previous financial year are exempt from several governance norms. These include regulations 17, 17A, 18, 19, 20, 21, 22, 23, 24, 24A, 25, 26, 27 and specific clauses of regulation 46.

Financial Position as of March 31, 2025

Smart Finsec Limited provided the following financial metrics to justify its eligibility for the exemption:

Both figures are below the Rs 10 crore capital limit and Rs 25 crore net worth limit mandated by the regulation. Consequently, the company confirmed that it is not required to submit the Disclosure of Related Party Transactions under Regulation 23. The filing, submitted by Rajvinder Kaur, Company Secretary and Compliance Officer, was signed on May 25, 2026.