Morarka Finance's FY26 profit after tax fell to ₹1.43 crore from ₹2.80 crore in FY25. The company recommended a 15% dividend and management is focusing on stable revenue streams.
Morarka Finance Reports Lower Profitability, Recommends Dividend for FY26
Profit after tax for FY 2025-26: ₹1.43 crore Profit before tax for FY 2025-26: ₹1.66 crore Reader Takeaway: Profitability dipped, but a dividend is proposed, signaling cautious optimism amidst strategic shifts. ## What just happened Morarka Finance Limited announced its financial results for the fiscal year ended March 31, 2026. The company reported a profit after tax of ₹1.43 crore, a decrease from ₹2.80 crore in the previous fiscal year. Profit before tax also saw a decline, standing at ₹1.66 crore for FY26 compared to ₹3.17 crore for FY25. Total assets were reported at ₹116.99 crore as of March 31, 2026. The Board of Directors has recommended a final dividend of ₹1.50 per equity share, equivalent to 15%, for the financial year 2025-26. The record date for this dividend is set for July 8, 2026. ## Why this matters The decline in profitability suggests potential challenges in the company's financial performance over the past year. However, the recommendation of a dividend indicates management's confidence in sustaining returns for shareholders, albeit at a reduced rate. The strategic focus on non-capital market revenue streams is a key development for long-term stability. ## The backstory In a significant operational update, Morarka Finance's registration status was reclassified from NBFC – Type-II to NBFC – Type-I by the RBI, with a fresh certificate issued on September 22, 2025. This change in regulatory classification might impact operational flexibility or compliance requirements. ## What changes now Mr. Pranay G. Morarka has been elevated from CEO to Managing Director for a five-year term, effective April 24, 2026, pending shareholder approval. This leadership transition signals continuity and potential for new strategic direction. Additionally, the company has entered a management consultancy agreement with Dwarikesh Sugar Industries Limited for finance and compliance services, at a monthly fee of ₹3.25 lakh. ## Risks to watch Management acknowledges revenue volatility as a concern, particularly due to its dependence on capital market revenues. The shift towards rental and consultancy income is intended to mitigate this risk, but the success of this transition will be crucial. ## Context metrics (time-bound) * Profit after tax FY 2025-26: ₹1.43 crore * Profit after tax FY 2024-25: ₹2.80 crore * Profit before tax FY 2025-26: ₹1.66 crore * Profit before tax FY 2024-25: ₹3.17 crore * Total Assets as at March 31, 2026: ₹116.99 crore * Dividend recommended: ₹1.50 per equity share (15%) * Dividend record date: July 8, 2026 * NBFC status change confirmation date: September 22, 2025 * Managing Director effective date: April 24, 2026 * Management consultancy fee: ₹3.25 lakh per month * Annual General Meeting (AGM) scheduled: July 15, 2026
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