Aastamangalam Finance Limited

Aastamangalam Finance Limited is a Non-Deposit taking Non-Banking Financial Company (NBFC-ND) registered with the Reserve Bank of India. The company is primarily engaged in providing short-term and long-term financing to both corporate and non-corporate entities. Its operations focus on lending activities within India. The company also emphasizes the recovery of overdue receivables, utilizing both legal routes and negotiations.

Key facts

• Registered with RBI as a Non-Deposit taking Non-Banking Financial Company (NBFC-ND) with Registration No. B-07-00421.
• Total income for the financial year ended March 31, 2026 (FY26) was Rs. 1,717.65 Lakhs, an increase from Rs. 1,549.62 Lakhs in FY25.
• Profit after tax for FY26 stood at Rs. 944.31 Lakhs, up from Rs. 827.67 Lakhs in FY25.
• The company has a Debt-Equity Ratio of 0.60 as of March 31, 2026, which is within the RBI's prescribed limit for NBFC-Base Layer.
• Promoter shareholding includes Ms. Bhavika M Jain (14.41%) and Ms. Khushbu M Jain (14.08%) as of March 31, 2026.
• The company does not have any subsidiaries, associates, or joint venture companies.

Recent developments (from AR for FY26)

• Strategy: The company continues to focus on growing its short-term and long-term financing business, both secured and unsecured, while actively pursuing recovery of overdue receivables.
• Financial Performance: In FY26, the company demonstrated improved profitability with Operating Profit Margin increasing to 97.53% from 83.46% and Net Profit Margin rising to 54.98% from 53.41% year-on-year.
• Capital Allocation: No dividend was recommended for FY26, with profits being ploughed back into the business for future growth.
• CSR Expenditure: The company incurred CSR expenditure of Rs. 12.00 Lakhs in FY26, exceeding its statutory obligation of Rs. 11.47 Lakhs.
• Management Outlook: Management expressed confidence in achieving better business performance in short-term and long-term financing activities.

Key risks flagged by management

• Changes in interest rates and borrowing costs.
• Liquidity and funding risks, which could impact lending capability.
• Unforeseen changes in the regulatory landscape and compliance requirements.
• Default challenges from non-repayment of loans by individuals or businesses, potentially reducing capital for new loans.
• Competition from banks, other NBFCs, and fintech companies.

Pros

• Consistent financial growth with rising total income and profit after tax in FY26.
• Low leverage position with a Debt-Equity Ratio of 0.60, indicating a conservative financial structure.
• Experienced board members with over a decade of experience in the finance business.

Cons

• Significant decline in Current Ratio (from 130.48 to 31.70) and Interest Coverage Ratio (from 5.64 to 4.18) in FY26, attributed to increased borrowings and current liabilities.
• Identified non-compliance: A fine of Rs. 5,900/- was levied for delay in submission of a related party transaction for the half year ended March 31, 2024.
• Predominantly operates in a single business segment (Financial Activities), limiting diversification.