Tirupati Fincorp Limited reported a net loss of ₹575.96 lakh for the financial year ended March 31, 2026, a significant widening from the net loss of ₹82.37 lakh recorded in FY25.

The company's total revenue contracted sharply by 77.31% to ₹2,512.54 lakh, driven by a near-total cessation of its core lending activities following a Reserve Bank of India (RBI) directive to discontinue its Non-Banking Financial Company (NBFC) operations.

Financial Performance

The decline in revenue was primarily due to a collapse in securities trading income and the absence of one-off other income that had contributed ₹816.99 lakh in the previous year. While interest income rose 50.49% to ₹1,381.64 lakh as the loan book wound down, it was insufficient to offset the broader revenue contraction.

Finance costs surged 125.66% to ₹1,329.59 lakh, largely due to accrued interest payables rising to ₹1,276.02 lakh. Additionally, impairment charges on financial instruments jumped 411.72% to ₹413.07 lakh, reflecting realistic asset valuations under Ind AS standards during the transition.

What the Numbers Show

The balance sheet reveals a critical erosion of capital. Total equity plummeted 97.87% to just ₹12.50 lakh, driven by the current year's losses adding to accumulated deficits. This has pushed the debt-to-equity ratio to over 800 times, highlighting the severe leverage pressure as the company exits its regulated NBFC business model without yet having established significant revenue streams in its new operational focus.

Strategic Pivot and Governance

Following the RBI's rejection of its fresh certificate of registration application in June 2025, Tirupati Fincorp has altered its Memorandum of Association to enter the automobile and electric vehicle manufacturing sector. The company incorporated a subsidiary, TFL Supereco Automotive Private Limited, in June 2026 to facilitate this pivot.

Governance changes included the appointment of Mr. Rajesh Shantilal Vakharia as Executive Director and CEO, effective August 6, 2026. The Board also approved shifting the registered office from Rajasthan to Maharashtra to align with its operational base in Mumbai.

Auditor Disclaimer

Statutory auditors JCR & Co. LLP issued a disclaimer of opinion on the financial statements. The auditors cited unresolved matters regarding the write-off of loan liabilities and inability to verify interest amounts due to missing documentation. They also noted the company continued some financing activities despite the RBI order to stop immediately.

Tirupati Fincorp Limited will hold its 44th Annual General Meeting on September 19, 2026, to approve the appointment of a new CEO and a strategic shift of its registered office from Rajasthan to Maharashtra.

The meeting is scheduled for 11:00 am via video conference. Shareholders will vote on appointing Rajesh Shantilal Vakharia as Chief Executive Officer and Executive Director, alongside adding Kinjal Darshit Parkhiya to the board as an independent director. The company also announced that the Register of Members and Share Transfer Books will remain closed from September 13, 2026, to September 19, 2026, for the purpose of the AGM.

Leadership Appointments

The board seeks shareholder approval to formally appoint Mr. Rajesh Shantilal Vakharia (DIN: 11874560) as Executive Director and CEO for a five-year term effective from August 6, 2026. Mr. Vakharia, who has served as President – Securities Transaction since April 2026, brings over three decades of experience in securities markets and financial operations.

Mrs. Kinjal Darshit Parkhiya (DIN: 10553695) is proposed for appointment as an Independent Director for five years. A practicing Company Secretary with over eight years of experience in corporate governance and regulatory compliance, she currently holds directorships in CRP Risk Management Limited, Varyaa Creations Limited, Minolta Finance Ltd, Max Earth Resources Limited, and Redbrick IT Support Limited.

Mrs. Sheetal Mitesh Shah, who serves as CFO and Director, retires by rotation and offers herself for re-appointment for another five-year term.

Strategic Operational Shifts

Shareholders will consider special resolutions to adopt new Memorandum and Articles of Association aligned with the Companies Act, 2013. The new Articles include an enabling clause permitting share capital reduction under Section 66 of the Act.

The board recommends shifting the registered office to Maharashtra, citing that major business operations, key management personnel, and corporate decision-making are primarily conducted in Mumbai. The move aims to improve operational efficiency, reduce administrative costs, and enhance stakeholder engagement in India's financial capital.

Governance and Audits

M/s CGCA & Associates LLP (FRN: 123393W) is proposed for appointment as Statutory Auditor for five consecutive years, following the recommendation of the Audit Committee.

Remote e-voting opens on September 14, 2026, at 9:00 am and closes on September 18, 2026, at 5:00 pm. The record date for voting rights is September 11, 2026.