Sakthi Finance (SAKTHIFIN) | News Based Sentiment Analysis

• On September 27, 2025, Sakthi Finance held its 68th Annual General Meeting via video conference, announcing key board changes. Smt. Susheela Balakrishnan and Sri S. Shivram were appointed as Non-Executive Independent Directors for five-year terms, effective August 14, 2025, and September 1, 2025, respectively. Sri S. Chandrasekhar was appointed as a Non-Executive Non-Independent Director from September 1, 2025, and Sri M. Balasubramaniam was re-appointed as Managing Director for another five years, starting September 29, 2025. These appointments signal a commitment to corporate governance and leadership continuity.
• Despite the board changes, Sakthi Finance’s share price continued to face headwinds, closing at ₹44.01 on September 26, 2025, a daily decline of -1.15% from ₹44.52. This represents a significant year-over-year decline of -46.15%, and the company’s market capitalization stood at ₹284.77 Crores. The P/E ratio was ₹16.86 with an EPS of ₹2.61, indicating continued investor concern.
• Earlier in the month, on September 5, 2025, Sakthi Finance’s valuation grade improved to 'fair', with a PE ratio of 17.05 and an EV to EBITDA of 8.90. This improvement suggests a more reasonable valuation compared to peers like Bajaj Finance (PE of 33.5), but hasn’t yet translated into share price recovery.
• In September 2025, Sakthi Finance reported Q1 FY2026 earnings with revenue increasing by 1% year-on-year to ₹53.75 Crore and net profit rising 5.91% to ₹4.12 Crore. However, net profit experienced a 10.24% quarter-on-quarter decline, highlighting ongoing volatility in performance.
• On September 18, 2025, Sakthi Finance announced a special window for re-lodgement of physical share transfer requests, aligning with SEBI regulations. This administrative step demonstrates a commitment to shareholder services and efficient handling of transactions.
• Following the Q1 FY2026 results on September 27, 2025, the Board approved plans to raise up to ₹250 Crores through Non-Convertible Debentures (NCDs) and increased the Authorized Share Capital from ₹130 Crores to ₹150 Crores. This move aims to strengthen the company’s financial position and fund future growth initiatives.
• Sakthi Finance announced a final dividend of Rs 0.80 per share on September 19, 2025, for shareholders on record before the ex-date, but this followed the earlier removal of a final dividend on September 18, 2025, suggesting a shifting capital allocation strategy.

The Investment Story: September was a month of mixed signals for Sakthi Finance, with board changes, a struggling share price, and a strategic shift towards fundraising through NCDs alongside a dividend payout. The company is actively working to improve its financial flexibility while navigating a challenging market environment.

What It Means for Investors: The combination of earnings growth, a declining stock price, and a changing dividend policy creates uncertainty. Investors should closely monitor the success of the NCD fundraising and the impact of the increased authorized share capital on future growth.

Looking Ahead: Investors should watch for updates on the NCD issuance, any further changes in the company’s capital allocation plans, and the impact of the new board members on strategic direction.

The Bottom Line: Sakthi Finance is proactively addressing its financial challenges, but the significant stock price decline and mixed earnings results warrant a cautious investment approach. The company's ability to successfully execute its fundraising plans will be crucial for its future prospects.