Real Touch Finance has scheduled its 41st AGM for September 26, 2026, seeking shareholder approval to double its borrowing limit to Rs 1,000 crore. The company reported a net profit of Rs 5.19 crore for FY26, up from Rs 4.61 crore the previous year, while proposing material related-party transactions worth Rs 1,000 crore to fuel lending operations.
Real Touch Finance FY26 Results and AGM Proposals
Revenue grew to Rs 39.17 crore from Rs 28.67 crore; Profit After Tax rose to Rs 5.19 crore.
Reader Takeaway: Increased borrowing power supports lending expansion, but high reliance on related-party transactions warrants close investor scrutiny.
What just happened
Real Touch Finance has released its 41st Annual Report ahead of its AGM on September 26, 2026. Shareholders will vote on several critical items, including a hike in the borrowing limit from Rs 500 crore to Rs 1,000 crore. Additionally, the company is seeking approval for Rs 1,000 crore in material related-party transactions (RPTs) involving Khivraj group entities to support its lending business.
Why this matters
The proposed borrowing limit increase provides the company with greater flexibility to raise capital for lending operations. The management has also appointed Mr. Angalappan Anandakumar as the new Managing Director for a five-year term starting September 1, 2026, at an annual remuneration of Rs 25 lakh, signaling a shift in leadership.
Financial Performance
For the fiscal year ended March 31, 2026, the company recorded a total income of Rs 40.45 crore, compared to Rs 28.87 crore in the prior year. Profit After Tax improved to Rs 5.19 crore from Rs 4.61 crore. Despite the profit growth, the board has opted not to declare a dividend to conserve capital for business needs. The company maintains a healthy Capital Adequacy Ratio of 23.37%.
Risks to watch
The company reported a reduction in its lending portfolio to Rs 192.08 crore following a strategic deployment of Rs 125 crore into Security Receipts. Investors should closely monitor the potential impact of the significant related-party transactions on the company's risk profile and the ongoing maintenance of its 0.36% Gross NPA ratio.
What to track next
Shareholders should monitor the outcomes of the voting on the borrowing limit hike and the RPT approvals during the upcoming AGM. The company's ability to maintain credit quality with a stable 'BBB' rating will be crucial for future growth.