AVONMORE - Avonmore Capital
📢 Recent Corporate Announcements
Avonmore Capital & Management Services Limited has reported that its application for a proposed Composite Scheme of Arrangement has been returned by the Membership Department of the Stock Exchange. This follows the initial board approval for the scheme which was granted on September 11, 2025. The return of the application signifies a procedural or compliance-related hurdle in the company's restructuring process. Investors should expect delays in the execution of this scheme as the company addresses the exchange's requirements.
- Stock Exchange returned the application for the Composite Scheme of Arrangement on January 23, 2026.
- The Board of Directors had originally approved the restructuring proposal on September 11, 2025.
- The return of the filing indicates a significant delay in the company's planned corporate arrangement.
- The company is currently under obligation to provide further updates per SEBI Regulation 30.
Avonmore Capital & Management Services has submitted its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations for the period ending December 31, 2025. The filing confirms that the company's Registrar, Beetal Financial & Computer Services, has processed all dematerialization requests within the stipulated 15-day timeframe. This includes the cancellation of physical certificates and updating the register of members with depository names. Such filings are mandatory and indicate the company is maintaining standard regulatory hygiene.
- Quarterly compliance certificate submitted for the period ended December 31, 2025
- RTA Beetal Financial confirms dematerialization requests were accepted or rejected as per norms
- Physical security certificates were mutilated and cancelled after due verification
- The name of the depositories was substituted in the register of members within 15 days of receipt
Avonmore Capital & Management Services has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI insider trading regulations. This closure is ahead of the declaration of the company's unaudited financial results for the quarter ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are made public. The specific date for the board meeting to approve these results will be communicated at a later time.
- Trading window for dealing in company shares closes effective January 1, 2026.
- Closure applies to all insiders, designated persons, and their immediate relatives.
- Window will reopen 48 hours after the announcement of Q3 FY2025-26 financial results.
- The board meeting date for result approval is yet to be scheduled and announced.
Financial Performance
Revenue Growth by Segment
Consolidated revenue for Q2 FY26 reached INR 37.04 Cr, representing a marginal growth of 1.09% QoQ from INR 36.64 Cr. Fees and Commission income grew by 15.4% QoQ to INR 30.86 Cr. Interest income saw a significant decline of 41.7% QoQ, falling from INR 3.69 Cr to INR 2.15 Cr. On a YoY basis for the half-year ended Sept 30, 2025, total income fell 17.9% to INR 73.91 Cr compared to INR 90.05 Cr in the previous year.
Profitability Margins
Net Profit Margin for Q2 FY26 was 16.2% (INR 6.00 Cr profit on INR 37.04 Cr revenue), a contraction from 20.6% in Q1 FY26. This decline is attributed to a 20.4% drop in absolute profit QoQ despite stable revenues, likely due to higher operational costs and lower fair value gains.
EBITDA Margin
Profit Before Tax (PBT) margin for H1 FY26 stood at 22.4% (INR 16.54 Cr on INR 73.91 Cr revenue). Core profitability was impacted by a swing in fair value changes, which moved from a gain of INR 2.66 Cr in Q1 FY26 to a loss of INR 0.01 Cr in Q2 FY26.
Credit Rating & Borrowing
Consolidated borrowings (other than debt securities) increased by 40.2% to INR 20.51 Cr as of Sept 30, 2025, compared to INR 14.63 Cr as of March 31, 2025. Specific interest rate percentages were not disclosed.
Operational Drivers
Raw Materials
Not applicable for the core financial services business; however, for the industrial subsidiary PGIPL, specific raw materials were not disclosed.
Manufacturing Efficiency
PGIPL's operational efficiency was severely hampered by weather, losing approximately 26% of available working days in Q2 FY26 due to heavy rains.
Strategic Growth
Growth Strategy
The company is pursuing a Composite Scheme of Arrangement to streamline its corporate structure. Growth is targeted through its diversified subsidiaries including Almondz Global Securities (market operations) and Almondz Finanz (lending), while managing industrial volatility in subsidiaries like PGIPL.
Products & Services
Investment banking, stock broking, debt and equity market operations, NBFC financing, healthcare services, and industrial manufacturing (via PGIPL).
Brand Portfolio
Avonmore, Almondz.
Strategic Alliances
The group operates through a network of subsidiaries including Almondz Global Securities Ltd, Acrokx Reality Pvt Ltd, and Almondz Finanz Ltd.
External Factors
Industry Trends
The financial services industry is shifting toward consolidated corporate structures for better regulatory compliance and capital efficiency, evidenced by Avonmore's pending Scheme of Arrangement.
Competitive Landscape
Competes with other diversified financial services firms and NBFCs in the Indian market.
Competitive Moat
The company maintains a diversified financial services moat through its subsidiaries (Almondz), providing a mix of fee-based and fund-based income, though this is susceptible to market cycles and environmental disruptions.
Macro Economic Sensitivity
Highly sensitive to capital market performance, which dictates 'Fees and Commission' income (83.3% of Q2 revenue) and fair value gains on investments.
Regulatory & Governance
Industry Regulations
Operations are governed by the Companies Act 2013 and Ind-AS accounting standards. The pending Composite Scheme of Arrangement requires approval from Stock Exchanges and other regulatory bodies.
Taxation Policy Impact
The company provided for current tax of INR 0.63 Cr for the half-year ended Sept 30, 2025.
Legal Contingencies
The company has a pending Composite Scheme of Arrangement filed with Stock Exchanges. A proposed preferential issue of equity shares was withdrawn specifically to avoid legal/regulatory complications regarding capital structure changes during this approval period.
Risk Analysis
Key Uncertainties
Regulatory risk regarding the approval of the Scheme of Arrangement and environmental risk (weather-related shutdowns) which recently reduced subsidiary profits by 65% QoQ (INR 3.67 Cr vs INR 10.55 Cr).
Credit & Counterparty Risk
Finance activities segment assets stand at INR 91.75 Cr, representing significant credit exposure to borrowers through its NBFC arm.