Nexome Capital Markets' record is clean on its face: seven years of unqualified audit opinions, no fraud or default findings, and a single minor regulatory penalty that was fully waived. Three things deserve attention: revenue flipped almost entirely to a new segment in FY26 while receivables surged 53 times, disputed tax demands of ₹3.36 crore vanished from the books without explanation, and promoter sons were appointed to the board amid repeated public shareholder dissent.
Key findings
- Revenue flipped to Investment Banking in FY26 as receivables surged 53x
Major- Consolidated Investment Banking revenue rose from ₹2.54 lakhs to ₹44.84 lakhs while Capital Market revenue fell from ₹36.86 lakhs to ₹3.21 lakhs. Standalone trade receivables jumped from ₹18.45 lakhs to 9.82 crore, with no impairment allowance recognised. Receivable days stretched from 3 days to 75 days, and the receivables-to-revenue ratio rose 2,787%, producing a DSRI flag of 28.87. - Operating cash flow turned positive after four negative years, but the shift coincides with the receivables-driven revenue mix change
Minor- CFO was negative from FY22 through FY25 (₹-3.62cr, ₹-7.01cr, ₹-4.92cr, ₹-2.56cr) before turning positive to ₹10.35cr in FY26. The CFO/PAT ratio recovered from below -1.0x in each of those four years to 0.97x in FY26. Free cash flow followed the same pattern, turning positive to ₹7.85cr in FY26 after four negative years, while no dividends were declared or paid in any of the five years. - Disputed tax demands disappeared from the books without explanation
Minor- FY2020 annual report shows contingent liabilities as "Nil". From FY2021 through FY2026, none of the ₹3.36 crore disputed income-tax or sales-tax demands or the ₹12 lakh High Court claim appear in the annual reports. A separate ₹58.53 lakh court deposit remains fully provided for, with the auditor flagging "remote chances of recovery". - Promoter sons appointed to the board while KMP remuneration rose faster than profits and public shareholders dissented
Minor- Mr. Samarth Parekh and Mr. Saharsh Parekh, both sons of the Chairman, were appointed as directors in 2025. KMP remuneration rose 66.57% to ₹2.5 crore in FY26, and in three of the last six years remuneration increased while profit before tax fell. Public non-institutional shareholders cast 90.61% votes against Mr. Samarth Parekh's appointment and 47.11% against the promoter reclassification resolution. - Seven years of clean audit opinions, though the auditor cannot comment on loan repayment regularity
Minor- The statutory auditor issued unqualified opinions on standalone and consolidated financial statements every year from FY2020 through FY2026. From FY2023 through FY2026, the CARO report states the auditor is unable to comment on the regularity of repayment for loans without stipulated schedules. In FY2026, ₹8.13 crore of loans were repayable on demand, with no loans to promoters or related parties. - A loss-making subsidiary with negative net worth is carried without impairment disclosure
Minor- The wholly owned subsidiary reported negative reserves of ₹(90.13 lakh) against share capital of 7.5 crore in FY2023, with negative reserves persisting from at least FY2020. Its total assets were ₹6.62 crore with negligible liabilities, yet the company states it has no material subsidiary as at March 31, 2026. A new subsidiary was incorporated on July 22, 2025.
What to watch
- Shareholder vote on MD continuation. A special resolution for Mr. Kishor Shah to continue as Managing Director after turning 70 on August 30, 2026 was approved by the Board on May 25, 2026 and now requires shareholder approval.
- Court-deposited receivable. The ₹58.53 lakh deposit remains fully provided and flagged by the auditor as of the FY2026 annual report.
- Disappeared tax demands. Any future disclosure explaining the ₹3.36 crore in disputed tax demands last reported in FY2020.
- New subsidiary consolidation. Whether Nexome Wealth Management Limited commences operations and is consolidated in FY2027, given the FY2026 annual report states no subsidiary as at March 31, 2026.
Bottom line: This is a disclosed and audited record with a long history of clean opinions and no regulatory trouble. The risk sits in the FY26 revenue transformation: a near-total segment flip accompanied by a receivables surge that has not yet been tested through a full cycle. Watch whether the new Investment Banking book collects, and whether the vanished tax demands and the ageing court deposit get explained.