Sakthi Finance reported a 1.46% increase in standalone net profit to ₹4.18 crore for the quarter ended June 2026, compared to ₹4.12 crore in the corresponding quarter of the previous year. However, the company faced revenue challenges as sales declined 5.12% to ₹51.00 crore during the quarter, down from ₹53.75 crore in June 2025. The profit growth was supported by impairment reversal of ₹1.2 crore versus provision of ₹1.0 crore in the prior year, as reported by Business Standard.
The company's operating profit margin (OPM) improved to 72.37% in Q1 FY27, compared to 71.81% in the same quarter last year. PBDT (Profit Before Depreciation and Tax) increased 4% to ₹7.65 crore from ₹7.34 crore year-on-year. PBT (Profit Before Tax) also grew 5% to ₹5.52 crore compared to ₹5.81 crore in June 2025. However, Net Interest Income (NII) declined 10.3% to ₹19.2 crore from ₹21.4 crore in the previous year, while PPOP (Profit Before Operating Profit) fell 22.4% to ₹6.5 crore from ₹8.4 crore year-on-year.
The company's GNPA improved to 4.6% from 4.7% in the previous year, while NNPA increased marginally to 2.2% from 2.2%. PCR declined to 53.2% from 54.9% in the corresponding quarter last year. CRAR strengthened significantly to 19.9% from 18.4%, indicating improved capital adequacy. The company successfully timely redeemed NCDs of ₹25.5 crore plus ₹5.2 crore interest, maintaining security cover at 1.10x, as reported by Business Standard.
The board has approved unlisted redeemable cumulative preference shares of up to ₹50 crore, carrying a coupon of up to 12%, subject to shareholder approval. This capital raising initiative comes as the company strengthens its financial position following improved asset quality and capital adequacy metrics. The preference shares will provide additional capital to support the company's growth initiatives and operational requirements.
The quarterly results show Sakthi Finance's ability to maintain profitability despite challenging market conditions and operational headwinds. The company's operational efficiency improvements, as evidenced by the higher operating margin and PBDT growth, demonstrate effective cost management strategies. The approval of preference shares indicates management's confidence in the company's growth prospects and capital requirements for future expansion.
