Dhvija Finance loans rise 50% as it issues Rs 10 crore NCDs

Dhvija Finance Limited issued Rs 10 crore of private-placement non-convertible debentures during the half year ended September 30, 2026, while loans and advances rose 50% to Rs 38.72 crore from Rs 25.79 crore at March 31. The lending increase was recorded as a Rs 12.93 crore operating-cash outflow.

How did Dhvija Finance raise Rs 10 crore?

Dhvija Finance raised Rs 10 crore by allotting two series of secured, unrated, unlisted and redeemable non-convertible debentures, or NCDs, worth Rs 5 crore each. Series A comprised 500,000 NCDs with a face value of Rs 100 each and was allotted on May 11, 2026. Series B had the same number and face value of instruments and was allotted on September 10, 2026.

The issues were made through private placement under the Companies Act, 2013 and related rules. The filing records Rs 10 crore of proceeds from the issue of NCDs in financing cash flow for the half year ended September 30, 2026. It does not disclose the coupon rate, maturity date, investor identities or the specific use of proceeds for either series.

Debt securities stood at Rs 6.25 crore on September 30, 2026. Borrowings other than debt securities were Rs 39.05 lakh, down from Rs 11.15 crore at March 31, 2026. Total financial liabilities rose to Rs 17.76 crore from Rs 12.15 crore over the six-month period, alongside the NCD issuance and changes in other liabilities.

How much did Dhvija Finance's loan book grow?

Dhvija Finance's loans and advances rose to Rs 38.72 crore at September 30, 2026 from Rs 25.79 crore at March 31, 2026, an increase of Rs 12.93 crore, or about 50%. The September balance was also above Rs 25.80 crore reported at September 30, 2025, indicating that the largest reported increase occurred during the six months from March 2026.

Loans and advances were the largest item within financial assets, which increased to Rs 44.65 crore at September 30 from Rs 28.62 crore at March 31. Cash and cash equivalents increased from Rs 53.78 lakh to Rs 5.33 crore, while other financial assets fell from Rs 2.29 crore to Rs 58.01 lakh. Those movements accompanied the Rs 16.03 crore increase in total financial assets.

Dhvija Finance says it is primarily engaged in financing and therefore has no separate reportable operating segments under Indian Accounting Standard 108. The filing consequently provides no product, borrower-category, customer or geographic split of the Rs 38.72 crore loans-and-advances balance. It also does not provide asset-quality measures in these financial results.

Why did Dhvija Finance's operating cash flow turn negative?

Dhvija Finance used Rs 6.88 lakh in operating activities in the half year ended September 30, 2026, compared with Rs 2.09 crore used in the corresponding half year of 2025. The largest working-capital movement was the Rs 12.93 crore increase in loans and advances, compared with a Rs 2.03 crore increase in the prior-year half year.

Before working-capital changes, Dhvija Finance generated Rs 9.78 crore of cash from operations, compared with Rs 1.06 crore in the corresponding 2025 period. The reconciliation includes profit before tax of Rs 9.69 crore, interest income of Rs 16.62 crore and finance costs of Rs 93.04 lakh. Cash flow records the increase in lending as an outflow because additional loans and advances were deployed during the half year.

Several liability and asset movements partly offset the lending outflow. Current tax liabilities increased by Rs 2.44 crore, other non-financial liabilities rose by Rs 1.08 crore, trade payables increased by Rs 55.85 lakh, and other financial assets fell by Rs 1.70 crore. The statement also records a Rs 2 crore increase in other non-financial assets and an income-tax adjustment of Rs 2.44 crore before arriving at net operating cash used of Rs 6.88 lakh.

What changed in Dhvija Finance's earnings and capital?

Dhvija Finance reported total income of Rs 14.36 crore for the quarter ended September 30, 2026, compared with Rs 2.18 crore in the September 2025 quarter. Profit after tax was Rs 4.35 crore, against Rs 38.92 lakh a year earlier. For the six months ended September 30, 2026, profit after tax reached Rs 7.51 crore, compared with Rs 71.77 lakh in the corresponding 2025 period.

Interest income was Rs 16.62 crore in the six-month period, compared with Rs 3.17 crore a year earlier. Finance costs rose to Rs 93.04 lakh from Rs 76.64 lakh, while total expenses increased to Rs 12.70 crore from Rs 3.19 crore. Profit before tax was Rs 9.69 crore for the 2026 half year, compared with Rs 95.93 lakh in the earlier period.

Equity increased to Rs 23.62 crore at September 30 from Rs 16.11 crore at March 31. Equity share capital rose to Rs 9.78 crore from Rs 8.89 crore, while other equity increased to Rs 13.84 crore from Rs 7.21 crore. On May 27, 2026, Dhvija Finance allotted 4,445,884 bonus equity shares of Rs 2 each in a one-for-ten ratio.

The bonus issue followed a May 4, 2026 resolution to subdivide each Rs 10 equity share into five Rs 2 shares. Dhvija Finance states that earnings per share for prior periods were restated for the subdivision and bonus allotment under Indian Accounting Standard 33. The company changed its name from F Mec International Financial Services Limited effective August 3, 2026.

Conclusion

Dhvija Finance paired Rs 10 crore of NCD proceeds with a Rs 12.93 crore expansion in loans and advances during the half year ended September 30, 2026. The loan book reached Rs 38.72 crore, financial assets rose by Rs 16.03 crore, and half-year profit after tax was Rs 7.51 crore. Lending growth was the largest identified cash outflow within operating activities.

The NCD terms remain unresolved in the filing because it does not state coupon rates, maturity dates, investors or the intended deployment of proceeds for the May 11 and September 10 series. Future disclosures can clarify those terms and show whether debt securities, which stood at Rs 6.25 crore on September 30, change alongside further movement in loans and advances.