Srestha Finvest Limited reported a sharp deterioration in its standalone financial performance for Q1FY27, with a net loss of ₹2,743.05 lakhs, reversing a net profit of ₹217.41 lakhs in Q1FY26. The results, covering the quarter ended June 30, 2026, were approved by the board of directors at a meeting held on August 14, 2026, along with a limited review report issued by statutory auditors Darpan & Associates, Chartered Accountants. The auditors issued a qualified conclusion, citing the company's non-provision of interest of ₹17.06 lakhs on borrowings from Arcadia Shipping Ltd due to an ongoing dispute, which understated finance costs and overstated profit after tax to that extent.

Standalone financial performance

Total income for Q1FY27 stood at ₹229.95 lakhs, down from ₹367.54 lakhs in Q1FY26. Revenue from operations declined to ₹122.31 lakhs from ₹367.53 lakhs in the year-ago quarter, with interest income falling to ₹111.76 lakhs from ₹320.52 lakhs. Other income rose sharply to ₹107.64 lakhs from ₹0.01 lakhs in Q1FY26. Total expenses surged to ₹3,950.98 lakhs from ₹150.13 lakhs in Q1FY26, driven by a provision for non-performing assets (NPA) of ₹3,885.52 lakhs, compared to nil in the year-ago period. The loss before tax stood at ₹3,721.03 lakhs against a profit before tax of ₹217.41 lakhs in Q1FY26.

The following table summarises key standalone financial metrics:

Paid-up equity share capital stood at ₹17,575.00 lakhs as of Q1FY27, up from ₹16,400.00 lakhs in the prior periods, following the allotment of 11,75,00,000 equity shares of ₹1 each at a premium of ₹0.05 per share pursuant to conversion of convertible warrants on April 13, 2026. Reserves excluding revaluation reserves stood at ₹(3,523.23) lakhs.

Consolidated financial performance

On a consolidated basis, Srestha Finvest reported a net loss of ₹2,743.06 lakhs for Q1FY27, compared to a profit of ₹217.20 lakhs in Q1FY26. Total income was ₹229.95 lakhs against ₹367.54 lakhs in Q1FY26. Total expenses on a consolidated basis were ₹3,951.00 lakhs, with NPA provisions again the dominant driver at ₹3,885.52 lakhs. The consolidated loss before tax was ₹3,721.05 lakhs. Total comprehensive income attributable to shareholders of the group was ₹(1,823.07) lakhs. The consolidated results include the subsidiary Srestha Greentech Pvt Ltd, whose unreviewed interim financials reflected total revenues of ₹0 lakhs, net loss after tax of ₹(0.02) lakhs, and total comprehensive loss of ₹(0.02) lakhs for the quarter.

Segment performance

Srestha Finvest operates across two segments: Lending Division and Investment/Trading in Equity and F&O. On a standalone basis, the Lending Division reported segment revenue of ₹229.95 lakhs and a segment loss before tax of ₹3,721.03 lakhs in Q1FY27, compared to revenue of ₹320.52 lakhs and profit of ₹149.66 lakhs in Q1FY26. The Investment/Trading segment reported nil revenue and nil profit for the quarter. Total standalone segment assets stood at ₹25,169.13 lakhs, with total segment liabilities at ₹10,495.53 lakhs and capital employed at ₹14,673.60 lakhs.

Regulatory and compliance matters

The board noted fines imposed by BSE Ltd and Metropolitan Stock Exchange of India Ltd, vide letters dated August 14, 2026, for late submission of the shareholding pattern for the quarter ended June 30, 2026, in violation of Regulation 31 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board also considered and approved compliance-related matters and reviewed ongoing general business matters and operational propositions. The board meeting commenced at 9:30 pm and concluded at 10:30 pm. No interim dividend was declared for the quarter. The company has not provided interest of ₹17.07 lakhs on borrowings for one party due to an ongoing dispute regarding interest and claim repayment, and has sought legal opinion on the matter.

srestha finvest has appointed Dipesh Jaswantlal Shah as an Additional Director in the category of Non-Executive, Independent Director, effective July 03, 2026. The appointment is for a term of five years, subject to the approval of the shareholders. The Board of Directors approved the appointment based on the recommendation of the Nomination and Remuneration Committee during its meeting held on July 03, 2026. The company confirmed that the new appointee has not been debarred from holding the office of Director by SEBI or any other authority.

Simultaneously, the Board accepted the resignations of Mayurdwajsinh Sahadevsinh Rana and Sahadevsinh Babubha Rana from their positions as Non-Executive and Non-Independent Directors. Their resignations, tendered on July 01, 2026, were attributed to personal reasons and increasing preoccupation with other professional and personal commitments. Following the acceptance of these resignations, Mayurdwajsinh Sahadevsinh Rana ceased to be a member of the Audit Committee, Nomination and Remuneration Committee, and Stakeholders Relationship Committee.

In light of these changes, the Board reconstituted the composition of its key committees, effective July 03, 2026. The reorganization ensures the continued governance and oversight of the company's operations. The new appointee, Dipesh Jaswantlal Shah, brings experience across the finance, consultancy, and advisory sectors and is not related to any of the existing directors of the company.

Composition of Audit Committee

Composition of Nomination and Remuneration Committee

Composition of Stakeholders Relationship Committee

The disclosures were made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Board meeting commenced at 05:00 P.M. and concluded at 05:30 P.M. on July 03, 2026.