Purple Finance Ltd (544191) Quarterly Report Analysis & Insights

Purple Finance Ltd

| Standalone Audited Results – Q4 & FY Ended Mar 31, 2026

NEUTRAL SENTIMENT

⬤21st Apr 26

Summary : Purple Finance reported a net loss for FY26 but raised significant capital through warrants and NCDs, receiving an unmodified audit opinion.

Quarterly Report Analysis & Insights

Financial Disclosures

Finance costs: Rs. 1,217.13 Lakhs (Year ended March 31, 2026)
Impairment on financial instruments: Rs. 70.59 Lakhs (Year ended March 31, 2026)
Employee benefit expenses: Rs. 3,257.74 Lakhs (Year ended March 31, 2026)
Depreciation, amortization and impairment: Rs. 226.67 Lakhs (Year ended March 31, 2026)
Other expenses: Rs. 924.17 Lakhs (Year ended March 31, 2026)
Interest income: Rs. 2,833.81 Lakhs (Year ended March 31, 2026)
Fees and commission income: Rs. 356.28 Lakhs (Year ended March 31, 2026)
Sale of services: Rs. 145.72 Lakhs (Year ended March 31, 2026)
Net gain on fair value changes: Rs. 1,428.98 Lakhs (Year ended March 31, 2026)
Other Operating Income: Rs. 18.71 Lakhs (Year ended March 31, 2026)
Net cash flow from operating activities: Rs. (9,815.65) Lakhs (Year ended March 31, 2026)
Net cash flow from investing activities: Rs. (90.30) Lakhs (Year ended March 31, 2026)
Net cash flow from financing activities: Rs. 9,304.62 Lakhs (Year ended March 31, 2026)
Cash and cash equivalents at year end: Rs. 1,060.11 Lakhs (as of March 31, 2026)
Total Assets: Rs. 24,474.55 Lakhs (as of March 31, 2026)
Total Equity: Rs. 13,156.34 Lakhs (as of March 31, 2026)
Debt-equity ratio: 0.81x (as of March 31, 2026)
Net worth: Rs. 13,156.34 Lakhs (as of March 31, 2026)
Total Debts to Total Assets: 0.43x (as of March 31, 2026)
Standalone financial results.

Corporate Overview

Mumbai, India (Registered and Corporate Office)
Net loss for the year ended March 31, 2026.
Significant Stage II and Stage III loans within the portfolio.
Non-Banking Financial Company (NBFC) engaged in financing activities.
Formal and informative, reporting board approvals and financial results, emphasizing compliance.
Interest income
Fees and commission income
Sale of services
Net gain on fair value changes
Other Operating Income
Increased authorized share capital from Rs. 55.6 Cr to Rs. 82.6 Cr.
Approved issuance and allotment of Equity Share Warrants.
Approved allotment of Subordinated, Unsecured, Non-Convertible Debentures (NCDs).

Risk Factors

Significant net loss for the financial year.
High proportion of Stage II and III loans.
Potential impact of new Labour Codes.
Negative cash flow from operating activities.

Key Drivers

Unmodified audit opinion on financial results.
Increased authorized share capital for growth.
Successful issuance of warrants and NCDs.
Strong compliance with regulatory requirements.

Auditor’s Report

Unmodified opinion on the Audited Financial Results for the quarter and year ended March 31, 2026.
Audit of standalone financial results in conformity with Indian Accounting Standards and RBI guidelines.
Assessment of management's responsibility for financial statements and internal controls.
Evaluation of going concern basis of accounting.

Board Commentary

Loans classified as Stage II and Stage III, requiring ECL provisions.
Compliance with SEBI Listing Regulations, Ind AS, Companies Act, and RBI guidelines.
Monitoring impact and compliance with new Labour Codes (Code on Wages, Industrial Relations Code, Social Security, Occupational Safety, Health and Working Conditions Code).
Increase in authorized share capital to Rs. 82.6 Cr.
Issuance of 100 million Equity Share Warrants at Rs. 39 each.
Issuance of 500 Subordinated, Unsecured NCDs at Rs. 1 Lac each.
Issuance of 25,000 Senior, Secured NCDs at Rs. 10,000 each.
Approved issuance of 126 million Equity Share Warrants at Rs. 55 each.

Corporate Governance

Auditors complied with Code of Ethics issued by ICAI.
Audit Committee and Board of Directors reviewed and approved results.
Finance Committee approved capital raising activities.

Management Discussion & Analysis

Future Strategy

Capital raising through warrants and NCDs to strengthen financial position.
Continued compliance with SEBI, RBI, and accounting standards.

Operational Focus Areas

Managing and provisioning for Stage II and Stage III loans.
Ensuring compliance with new Labour Codes and other regulations.

Performance Drivers

Interest income, fees, and net gain on fair value changes contribute to revenue.
Finance costs, employee benefits, and impairment on financial instruments are key expenses.

Risk Control Measures

ECL provision created for Stage II and Stage III loans.
Monitoring finalization of Labour Code rules for compliance.

Critical Risks

Net loss for the financial year.
High proportion of Stage II and Stage III loans.
Potential impact of new Labour Codes on employee benefits.