SMIFS Capital Markets Limited (formerly Nexome Capital Markets Limited) has released its financial results for the quarter ended September 30, 2025, revealing significant impacts on its loan and investment portfolio, along with key organizational changes.

Comprehensive Portfolio Review

The company conducted a thorough review of its loan and investment holdings during the quarter. This assessment led to two major financial adjustments:

1. Expected Credit Loss: SMIFS Capital Markets recognized an expected credit loss on a loan extended to an undisclosed party.
2. Fair Valuation Loss: Based on an independent valuer's report, the company recorded a fair valuation loss on its investment portfolio.

While specific figures for these losses were not disclosed, the company stated that necessary provisions have been made in the financial statements in accordance with prudent accounting practices.

Financial Performance

Despite these challenges, SMIFS Capital Markets showed resilience in its financial performance:

The company's net profit after tax for Q2 2025 stood at ₹133.43 lakhs, an increase from ₹25.80 lakhs in the same quarter of the previous year. For the half-year ended September 30, 2025, net profit reached ₹261.38 lakhs, up from ₹62.69 lakhs in the corresponding period of 2024.

Segment Performance

SMIFS Capital Markets operates in two main segments:

1. Capital Market Operations: Generated revenue of ₹255.16 lakhs in H1 2025.
2. Investment Banking Operations: Contributed ₹2,238.34 lakhs to the revenue in H1 2025.

Strategic Developments

The company incorporated a wholly-owned subsidiary, Nexome Wealth Management Limited, on July 22, 2025. This new entity will focus on providing corporate advisory, financial consultancy services, wealth management, investment advisory, and project syndication services.

Management Changes

The company has appointed Ms. Sanjana Gupta as Company Secretary cum Compliance Officer, effective November 4, 2025. Ms. Gupta is an associate member of the Institute of Company Secretaries of India (ICSI) with qualifications in commerce and law. She brings experience from her previous role as Company Secretary at the subsidiary Nexome Capital Services Limited for two years.

Management's Stance

While acknowledging the impact of the credit loss and investment valuation adjustments, the company's management emphasized their commitment to recovering the outstanding loan amount. They stated, "The Company remains committed to taking all appropriate steps to recover the outstanding loan amount."

Looking Ahead

As SMIFS Capital Markets navigates through these financial challenges, the diversification of its business through the new wealth management subsidiary may provide additional revenue streams and risk mitigation. The appointment of Ms. Gupta as Company Secretary cum Compliance Officer is expected to strengthen the company's corporate governance framework.

Investors and stakeholders will likely monitor the company's efforts to recover the loan, its overall portfolio management strategies, and the performance of its new subsidiary in the coming quarters.

The company's ability to maintain profitability despite these setbacks demonstrates its resilience, but the long-term implications of the credit loss and investment valuation adjustments will be crucial factors in assessing SMIFS Capital Markets' financial health and growth prospects.

SMIFS Capital Markets Limited, now known as Nexome Capital Markets Limited, has received a significant approval from The Calcutta Stock Exchange (CSE) for a major shareholding reclassification. This development marks a notable change in the company's ownership structure and compliance with regulatory requirements.

Reclassification Approval

The Calcutta Stock Exchange has granted approval for Nexome Capital Markets to reclassify eight individuals and entities from the 'Promoter/Promoter Group' category to the 'Public' category of shareholders. This reclassification is in accordance with Regulation 31A of the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Entities Approved for Reclassification

The following individuals and entities have been approved for reclassification:

1. Ajay Kumar Kayan
2. Lalita Kayan
3. Rahul Kayan
4. Payal Saraf
5. Suman Bhartia
6. Ajay Kumar Kayan HUF
7. Gauri Shankar Ajay Kumar HUF
8. Mackertich Consultancy Services Private Limited

Next Steps

Nexome Capital Markets has stated that it will take all necessary steps to comply with the reclassification process. This includes calling a shareholders' meeting to seek approval for the reclassification, as required under SEBI LODR Regulations.

Regulatory Compliance

The company received the no-objection letter from CSE on September 23, bearing reference number CSE/LD/16960/2025. This approval follows Nexome Capital Markets' application dated June 5 for the reclassification request.

Trading Window Closure

In a separate but related development, Nexome Capital Markets has announced the closure of its trading window for insiders. This closure is in compliance with SEBI regulations on the prohibition of insider trading. The trading window will remain closed from October 1 until 48 hours after the declaration of the company's unaudited financial results for the quarter ending September 30.

This reclassification approval and the proactive measures taken for insider trading prevention demonstrate Nexome Capital Markets' commitment to regulatory compliance and transparent corporate governance. Shareholders and potential investors should take note of these changes in the company's ownership structure and trading restrictions for insiders.

Nexome Capital Markets Limited continues to trade under the ISIN INE641A01013, and further updates regarding the shareholders' meeting and financial results are expected to be communicated in due course.