Karnavati Finance Reports Widened Net Loss of ₹5.90 Crore for FY26

Karnavati Finance posted a net loss of ₹5.90 crore for the fiscal year ended March 31, 2026. This marks a significant increase from the net loss of ₹1.68 crore in the previous fiscal year.

Reader Takeaway: Revenue growth overshadowed by rising expenses and widened net loss, signaling financial stress.

What just happened

Karnavati Finance Limited announced its financial results for the year ended March 31, 2026. The company reported a net loss of ₹5.90 crore (₹590.07 lakh) against a revenue from operations of ₹5.31 crore (₹530.79 lakh).

Why this matters

For investors, the widening net loss and significant negative operating cash flow are key concerns. Despite a substantial 242% increase in revenue from operations to ₹5.31 crore in FY26, the company's total expenses also surged by 240% to ₹11.05 crore, leading to a substantially larger net loss.

The backstory

The company has transitioned from a net loss of ₹1.68 crore in FY25 to a more substantial ₹5.90 crore loss in FY26. Revenue from operations also saw significant growth, jumping from ₹1.55 crore in FY25 to ₹5.31 crore in FY26.

What changes now

Shareholders will be looking for management strategies to control costs and improve operational efficiency to reverse the trend of widening losses. The company has appointed M/s. Tejwani & Co. as its Internal Auditor for FY2026-27.

Risks to watch

The primary risks highlighted are the widening net loss, the substantial increase in total expenses relative to revenue, and a concerning negative net cash flow from operating activities of ₹44.84 crore for FY26. These factors point to potential liquidity challenges and operational inefficiencies.

Peer comparison

(No peer comparison data available in the filing).

Context metrics (time-bound)

• Revenue from Operations (FY26): ₹5.31 crore (+242% YoY)
• Total Expenses (FY26): ₹11.05 crore (+240% YoY)
• Net Loss (FY26): ₹5.90 crore (Widened from ₹1.68 crore in FY25)
• Basic EPS (FY26): ₹-0.59
• Net Cash Flow from Operations (FY26): ₹-44.84 crore

What to track next

Investors should monitor the company's future financial reports for signs of improved cost management, a reduction in net losses, and a positive shift in operating cash flow.