Avon Mercantile Ltd has swung to a profit of Rs 91.62 lakh for FY26, up from a loss in the previous year, backed by rising revenue from operations. The company, a Base Layer NBFC focusing on group loans, will conduct its 41st AGM via video conference on September 29, 2026. Shareholders will vote on the re-appointment of Director Gurvinder Pal Singh while noting the company's efforts to address ongoing board compliance requirements.
Avon Mercantile Reports Turnaround Profit for FY26
Profit after tax: Rs 91.62 lakh. Revenue from operations: Rs 484.21 lakh.
Reader Takeaway: Profitability has improved significantly through interest income, though board composition remains a key regulatory concern.
What just happened
Avon Mercantile Ltd has announced its financial results for the year ended March 31, 2026, marking a shift from a net loss in the previous year to a profit of Rs 91.62 lakh. The company also disclosed details for its 41st Annual General Meeting (AGM) scheduled for September 29, 2026. Shareholders will convene via video conference to deliberate on financial adoption and the re-appointment of Non-Executive Director Gurvinder Pal Singh.
Why this matters
The return to profitability reflects a jump in revenue from operations to Rs 484.21 lakh, compared to Rs 255.22 lakh in FY25. For investors, this signals stability in the company’s core activity of providing inter-corporate deposits and short-term loans. However, the company faces compliance observations regarding its board structure, specifically the lack of an Executive Director, which is required under SEBI regulations.
The backstory
As a Base Layer NBFC, Avon Mercantile operates primarily by lending to its group entities. While the company has managed a 15% increase in total assets, which now stand at Rs 45.71 crore, it continues to navigate risks associated with credit concentration within the group. The company confirmed no changes to its core business nature during the fiscal year.
What changes now
Shareholders will vote on the reappointment of Mr. Gurvinder Pal Singh during the upcoming AGM. The company is also working through administrative compliance, including rectifying a previous oversight regarding the filing of a board resolution with the Registrar of Companies.
Risks to watch
Investors should note the ongoing concentration risk, as the company’s loan book is heavily reliant on group companies. Additionally, the non-compliance with Regulation 17 regarding board composition remains a notable governance issue that management is tasked with resolving.
Context metrics
The company reported a basic EPS of Rs 1.23 for FY26, compared to a negative EPS of Rs 0.02 in the prior year. Total paid-up equity capital remains steady at Rs 7.48 crore.