Ad-Manum Finance CEO Resigns Amid Profit Slump, New Leadership Proposed

Introduction

Ad-Manum Finance Limited is navigating a significant leadership transition as its Whole-Time Director and CEO, Mr. Dharmendra Agrawal, announced his resignation effective April 3, 2026. The departure, attributed to personal interests, comes at a critical time for the Indore-based non-banking finance company (NBFC), which recently reported a sharp decline in quarterly profits and has proposed a new leadership structure pending regulatory approval.

A Change at the Top

Mr. Agrawal's exit concludes his tenure at the helm of the company, initiating a search for a new chief executive to guide its future strategy. This development follows a board meeting on March 23, 2026, where the company laid the groundwork for a revamped leadership team. The board approved proposals to appoint Ms. Neha Singh as the new Whole-Time Director and Mr. Pramod Kishore Shrivastava as the Non-Executive Director and Chairman. These appointments are crucial for stabilizing the company's governance but are contingent on receiving clearance from the Reserve Bank of India (RBI) and subsequent shareholder consent.

Financial Performance Under Scrutiny

The leadership shuffle unfolds against a backdrop of challenging financial performance. For the third quarter of fiscal year 2026 (Q3FY26), ending December 31, 2025, Ad-Manum Finance reported a 44.2% year-on-year decline in net profit, which fell to ₹1.31 crore from ₹2.36 crore in the same period last year. This significant drop occurred despite total income remaining relatively stable at ₹3.75 crore.

The Surge in Expenses

The primary driver behind the steep profit decline was a dramatic increase in total expenses, which surged by 190.8% to ₹1.83 crore from ₹0.63 crore in Q3FY25. A closer look reveals that the category of 'Other Expenses' was the main contributor, skyrocketing by over 1,200% to ₹1.48 crore from just ₹0.11 crore in the previous year. This substantial cost escalation overshadowed a 47.6% reduction in finance costs, directly impacting the company's bottom line.

Nine-Month Performance Offers Stability

While the third-quarter results raised concerns, the company's performance over the first nine months of FY26 showed more resilience. For the period ending December 31, 2025, total income grew by 11.6% to ₹12.01 crore, and net profit saw a modest increase of 2.2% to ₹6.89 crore. This suggests that the challenges faced in Q3 were particularly acute, contrasting with a more stable performance over the longer period.

A Pattern of Management Churn

The departure of the CEO is the latest in a series of high-level management changes at Ad-Manum Finance. The company has experienced significant churn in its Key Managerial Personnel (KMP) over the past year. The Chief Financial Officer (CFO) position has seen three occupants in a short span: Mr. Vikas Gupta resigned in February 2025, his successor Mr. Ronak Sharma resigned in June 2025, and Mr. Dheeraj Bajoliya was appointed in August 2025. Such frequent changes in critical roles can disrupt strategic continuity and operational stability.

Governance and Market Outlook

Adding to the complexity is a past issue concerning an excess remuneration of ₹9.93 lakhs paid to the outgoing CEO, Mr. Agrawal, which the company noted needed regularization. As the company awaits RBI approval for its proposed directors, the market will be watching closely. The stock has delivered negative returns over the past six months (-26.09%) and one year (-18.31%), reflecting investor concerns. However, its five-year return remains strong at over 193%.

Conclusion

Ad-Manum Finance stands at a pivotal juncture. The resignation of its CEO, coupled with a sharp quarterly profit drop and a history of management instability, presents a formidable challenge. The immediate priority will be to secure regulatory approval for Ms. Neha Singh and Mr. Pramod Kishore Shrivastava. Their potential appointments will be critical in steering the company toward operational stability, addressing expense management, and rebuilding investor confidence for sustainable growth.