Sonal Mercantile Reports Rs 11.47 Crore Profit

Profit rose 10.2% to Rs 11.47 crore; Total income climbed 15.5% to Rs 40.76 crore.

Reader Takeaway: Steady financial growth marked by clean audits, though shareholders must scrutinize the proposed large related-party credit limit.

What just happened

Sonal Mercantile Ltd held its 41st Annual General Meeting, reporting improved financials for the fiscal year ending March 31, 2026. The NBFC recorded a profit after tax of Rs 11.47 crore, up from Rs 10.41 crore in the previous year. Total income grew to Rs 40.76 crore from Rs 35.29 crore, while expenses rose to Rs 25.26 crore.

Why this matters

The company is seeking shareholder approval to set a Rs 250 crore outstanding limit for related party transactions with Rudraveerya Developers Ltd. Given the scale of this amount relative to the company's annual profit, this remains a key agenda item for shareholders to evaluate for potential conflicts or capital concentration risks. No dividends were declared, with the board prioritizing fund liquidity.

Board and Management Update

Changes to the board include the appointment of Mr. Akash Bhardwaj as an Additional Independent Director starting September 09, 2025. Mr. Munish Kumar Garg completed his five-year term as an Independent Director on September 08, 2025, and stepped down, while Mr. Pardeep Kumar was re-appointed for a second term.

Corporate Governance and Auditors

The firm received a clean Secretarial Audit Report for FY 2025-26 with no adverse remarks. Statutory auditors, M/s. Ajay Rattan & Co., noted no instances of fraud or internal control failures, providing a stable governance outlook for the NBFC.

What to track next

Investors should monitor the outcome of the 41st AGM scheduled for September 30, 2026, specifically regarding the approval of the Related Party Transaction (RPT) limit.