Richfield Financial Services Limited , a Non-Banking Financial Company (NBFC), has received shareholder approval for a significant capital raise through a preferential issue. The decision was made at an Extraordinary General Meeting (EGM) held on December 3, 2025.

Key Details of the Preferential Issue

• Number of Shares: 40,00,000 (Forty Lakh) equity shares
• Issue Type: Preferential basis through private placement
• Allottees: Promoters and identified non-promoters

Utilization of Funds

The company has outlined a clear plan for the utilization of the funds raised:

Business Activities (Minimum 75% of Issue Proceeds)

The funds allocated for business activities will be used for:

1. Onward lending and loan disbursements
2. Repayment/prepayment of existing borrowings
3. Enhancement of lending operations and working capital
4. Branch expansion and network strengthening
5. Investment in technology and infrastructure
6. Increase in employee strength and related operational resources

General Corporate Purposes (Up to 25% of Issue Proceeds)

This portion will be used for:

1. Meeting ongoing administrative and operational expenses
2. Providing for general corporate exigencies and contingencies
3. Funding statutory payments, professional fees, and compliance-related costs

Financial Context

Examining Richfield Financial Services' recent balance sheet data provides context for this capital raise:

The substantial increase in total assets and non-current liabilities suggests that the company has been expanding its operations rapidly. The preferential issue appears to be a strategic move to support this growth trajectory and strengthen the company's capital base.

Implications and Outlook

This preferential issue represents a significant step for Richfield Financial Services, potentially enabling the company to:

1. Expand its loan portfolio and market presence
2. Improve its capital adequacy ratio
3. Invest in technological infrastructure to enhance operational efficiency
4. Strengthen its competitive position in the NBFC sector

As the company deploys these funds, investors and market observers will likely monitor the impact on Richfield's financial performance, market share, and overall growth in the coming quarters.

The successful approval of this preferential issue indicates confidence from both promoters and select non-promoters in the company's future prospects and growth strategy.

Richfield Financial Services Limited has reported robust financial results for the quarter ended September 30, 2025, along with plans for strategic expansion. The company's board of directors approved the unaudited financial results in a meeting held on November 12, 2025.

Financial Performance Highlights

The company demonstrated significant growth in its revenue and profitability for the second quarter of the fiscal year 2025-26:

The company's revenue from operations saw a substantial increase of 54.03% year-over-year, rising from ₹175.87 lakhs in Q2 FY2024-25 to ₹270.90 lakhs in Q2 FY2025-26. This growth also represents a 41.31% increase from the previous quarter's revenue of ₹191.70 lakhs.

Earnings per share (EPS) showed a remarkable improvement, turning positive at ₹0.45 for Q2 FY2025-26, compared to a loss of ₹0.08 per share in the same quarter of the previous year.

Strategic Expansion

In addition to the strong financial performance, Richfield Financial Services announced plans for strategic expansion:

• The Board of Directors has approved the expansion of branches in the Kerala and Bangalore regions.
• This move is expected to strengthen the company's presence in these key markets and potentially drive future growth.

Corporate Governance

The company maintains a 100% promoter shareholding, indicating strong insider confidence. Additionally, there were no pending investor complaints at the end of the quarter, suggesting effective investor relations management.

Outlook

While the company has shown impressive growth in revenue and profitability, it's important to note that these results are unaudited. The expansion plans in Kerala and Bangalore could potentially lead to increased market share and revenue growth in the coming quarters.

Investors and stakeholders should keep an eye on how these expansion plans materialize and impact the company's future financial performance. As always, it's advisable to consider audited annual results and long-term trends when making investment decisions.

Note: All financial figures are in Indian Rupees (INR) lakhs unless otherwise stated.