Explicit Finance Limited has reported a strong recovery in quarterly profitability, with net profit surging 77% year-on-year to ₹14.74 lakhs for the quarter ended December 31, 2025. The investment and financing company's Board of Directors approved the unaudited financial results during their meeting held on February 13, 2026.

Quarterly Financial Performance

The company's Q3FY26 performance showed mixed results, with profitability improving significantly despite lower revenue generation. Total income for the quarter declined to ₹89.12 lakhs from ₹122.84 lakhs in the corresponding quarter of the previous year.

Revenue Composition Analysis

The company's revenue streams showed varying performance across different segments. Interest income remained relatively stable at ₹20.19 lakhs compared to ₹20.18 lakhs in Q3FY25. However, the sale of shares and securities, which forms the largest revenue component, declined significantly to ₹68.80 lakhs from ₹102.44 lakhs year-on-year.

Nine-Month Performance Overview

For the nine-month period ended December 31, 2025, Explicit Finance demonstrated substantial improvement in profitability. The company achieved a net profit of ₹13.88 lakhs compared to ₹2.43 lakhs in the corresponding period of the previous year, marking a significant turnaround.

Cost Management and Operational Efficiency

The company's improved profitability can be attributed to effective cost management strategies. Total expenses for Q3FY26 decreased substantially to ₹74.38 lakhs from ₹114.53 lakhs in the previous year. The major expense reduction came from purchases of stock-in-trade, which declined to ₹69.71 lakhs from ₹117.39 lakhs year-on-year.

Employee benefit expenses showed a moderate increase to ₹4.02 lakhs from ₹3.53 lakhs, while other expenses rose to ₹2.33 lakhs from ₹1.12 lakhs in the corresponding quarter.

Corporate Governance and Compliance

The financial results were reviewed by the company's Audit Committee and approved by the Board of Directors during their meeting on February 13, 2026. The meeting commenced at 10:30 AM and concluded at 10:55 AM, with Chairman Gopal Dave (DIN: 00334120) presiding over the proceedings.

Statutory auditors GMCS & Co. (Firm Registration No. 141236W) conducted a limited review of the financial results. Partner Amit Bansal (Membership No. 424232) signed off on the review report, confirming compliance with applicable Indian Accounting Standards and SEBI regulations.

The company maintains a paid-up equity share capital of ₹926.76 lakhs with a face value of ₹10 per share, which remained unchanged across all reporting periods. As an investment and financing company, Explicit Finance operates as a single reportable segment under Ind AS 108 requirements.

Explicit Finance Limited , a company listed on the Indian stock exchange, has announced a significant change in its board composition. Independent Director Mr. Pushparaj Mayekar has tendered his resignation, effective from the close of business hours on November 14, 2025.

Resignation Details

The company disclosed this information in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Here are the key details of the resignation:

Implications and Company Statement

The company stated that there were no material reasons for the resignation other than Mr. Mayekar's pre-occupancy. This suggests that the director's decision to step down was primarily due to personal commitments or time constraints rather than any issues within the company.

In his resignation letter, Mr. Mayekar expressed gratitude to the board for the cooperation extended during his tenure as an independent director. Explicit Finance Limited, in turn, acknowledged his contribution and announced the resignation as per regulatory requirements.

Corporate Governance Perspective

The resignation of an independent director is a significant event from a corporate governance standpoint. Independent directors play a crucial role in ensuring transparency, protecting shareholder interests, and providing unbiased oversight of company operations.

Explicit Finance Limited will likely be required to fill this vacancy to maintain the required composition of independent directors on its board, as mandated by Indian corporate law and SEBI regulations.

Investors and stakeholders of the company may want to monitor any subsequent appointments to the board and any potential impact on the company's governance structure.

The company's prompt disclosure of this change in board composition demonstrates its commitment to transparency and regulatory compliance. As the market absorbs this information, it will be interesting to see how it might influence investor sentiment towards Explicit Finance Limited in the coming days.