Indergiri Finance Faces Regulatory Challenges Amid Financial Struggles
Indergiri Finance Limited reported unaudited financial results for Q2 2025, revealing significant issues. The company's Net Owned Fund has fallen below the RBI's regulatory threshold of INR 5 crore. Total assets decreased by 10.25% to INR 1,850.89 lakhs, while other equity turned negative at INR -394.80 lakhs. The company has defaulted on loan repayments totaling INR 476.26 lakhs. Auditors issued a qualified conclusion, emphasizing the potential impact on the company's NBFC status.
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Indergiri Finance Limited (ISIN: INE628F01019) has reported its unaudited financial results for the quarter ended September 30, 2025, revealing significant challenges that could impact its operations as a Non-Banking Financial Company (NBFC).
Regulatory Capital Shortfall
The company's Net Owned Fund (NOF) has fallen below the regulatory threshold of INR 5 crore mandated by the Reserve Bank of India's (RBI) Scale-Based Regulations. This shortfall affects both the March 31, 2025, and September 30, 2025 periods, raising concerns about the company's ability to maintain its NBFC registration and continue lending operations.
Financial Performance
Indergiri Finance's financial position has deteriorated, as evidenced by the following key metrics:
| Financial Metric | Current Period | Previous Period | Change |
|---|---|---|---|
| Total Assets | INR 1,850.89 lakhs | INR 2,062.26 lakhs | -10.25% |
| Other Equity | INR -394.80 lakhs | INR -230.47 lakhs | -71.30% |
The negative other equity figure indicates a significant erosion of shareholder value.
Loan Repayment Defaults
The company has defaulted on loan repayments, with outstanding amounts as follows:
| Default Type | Amount (INR lakhs) |
|---|---|
| Principal Installments | 425.24 |
| Interest | 51.02 |
| Total Default | 476.26 |
These defaults further underscore the financial distress faced by the company.
Auditor's Qualified Conclusion
The auditors have issued a qualified conclusion, highlighting the NOF shortfall as a critical issue. This qualification emphasizes the potential impact on Indergiri Finance's status as an NBFC and its ability to sustain lending operations.
Board Meeting and Result Approval
On November 11, 2025, Indergiri Finance's Board of Directors convened a meeting from 4:00 PM to 5:30 PM to approve the unaudited financial results for the quarter and half-year ended September 30, 2025. The company has committed to publishing these results in both English and vernacular newspapers, as required by SEBI regulations.
Outlook
The combination of regulatory capital shortfall, loan repayment defaults, and declining financial metrics presents significant challenges for Indergiri Finance. The company's ability to address these issues promptly will be crucial for its future as an NBFC and its overall financial health.
Investors and stakeholders should closely monitor the company's efforts to rectify its NOF position and improve its financial standing in the coming quarters.
Historical Stock Returns for Indergiri Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.98% | +1.38% | -11.33% | +94.50% | -3.28% | +502.74% |
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