Nahar Capital and Financial Services Limited is a prominent Indian **Non-Banking Financial Company (NBFC)** registered with the **Reserve Bank of India (RBI)**. Under the RBI’s Scale Based Regulation (SBR) framework, the company is classified as **NBFC-Base Layer (NBFC-BL)** and operates as an **Investment and Credit Company (NBFC-ICC)**. The company serves as the primary investment vehicle for the Nahar Group, managing a substantial pool of investible funds and a strategic real estate portfolio. --- ### **Strategic Asset Allocation & Investment Philosophy** The company’s core strategy focuses on a **diversified investment approach** designed to deliver consistent shareholder returns while maintaining high safety standards. Management is actively transitioning the portfolio toward **high-growth technology sectors** and **alternative asset classes** to mitigate volatility in traditional markets and optimize tax efficiency following changes in debt mutual fund regulations. * **Traditional Financial Instruments:** Direct investments in **Debt Securities, G-Secs, State Development Loans (SDLs), Commodity Funds,** and **Quant-based Market Linked Debentures (MLDs)** linked to gold and equity markets. * **Alternative Investment Vehicles:** Increased allocation to **REITs, InvITs,** and **Alternative Investment Funds (AIFs)**, including Credit Opportunity, Private Equity, and Venture Funds. * **Future-Tech Focus:** Strategic positioning in "Digital Disruptive Technology Funds" and sectors including **Electric Vehicles (EVs), Artificial Intelligence (AI), 5G/6G/Satellite Networking,** and **Cloud Computing**. * **Duration Strategy:** Increasing exposure to **longer-duration debt securities** to capture yields amidst global interest rate volatility. --- ### **Dual-Segment Operational Framework** The company’s operations are divided into two primary reporting segments, balancing stable rental yields with capital appreciation. | Segment | Primary Activities | Key Revenue Drivers | |:---|:---|:---| | **Investment / Financial** | Long-term strategic holdings and short-term trading; lending to group affiliates. | Dividends, interest income, and capital gains from equity/debt. | | **Real Estate** | Development, trading, and management of high-value property assets. | Rental income, lease yields, and property-related gains. | #### **Real Estate Portfolio Structure** The real estate division integrates direct ownership with collaborative development frameworks: * **Residential cum Commercial Complexes:** Development of integrated mixed-use properties to diversify risk across property cycles. * **Real Estate Trading:** Acquisition of properties for **short-to-medium term trading** rather than long-term holding. * **Joint Development Agreements (JDA):** Partnering with landowners to construct large-scale projects, sharing revenue or built-up area. * **Valuation Policy:** All inventories, including trading and JDA properties, are measured at **Fair Value** to reflect current market conditions. --- ### **Financial Performance & Capital Strength** The company maintains a conservative capital structure characterized by high net worth and minimal leverage. **Key Financial Indicators (Consolidated):** | Metric (₹ in Lakhs) | FY 2023-24 | FY 2022-23 | | :--- | :--- | :--- | | **Gross Revenue** | **5,606.03** | **4,011.30** | | **Profit Before Tax (PBT)** | **4,642.36** | **3,093.66** | | **Net Profit (PAT)** | **3,839.83** | **2,781.20** | **Segment Performance Comparison (FY 2024-25 vs FY 2023-24):** | Metric (₹ Crores) | Investment (2025) | Investment (2024) | Real Estate (2025) | Real Estate (2024) | | :--- | :---: | :---: | :---: | :---: | | **Net Revenue** | **43.67** | **49.83** | **5.69** | **6.23** | | **Profit (PBIT)** | **40.14** | **47.11** | **4.49** | **5.06** | **Solvency and Liquidity (as of March 31, 2025):** * **Net Worth:** **₹906.16 Crore** (up from ₹887.64 Crore in 2024). * **Net Debt:** **₹5.05 Crore**, reflecting a very low debt-to-equity ratio. * **Credit Rating:** Reaffirmed at **[ICRA] A1+** (July 2025) for its **₹25 Crore** Commercial Paper Programme, the highest safety rating. * **Statutory Reserves:** Transferred **₹6.1 Crore** (20% of PAT) to the Statutory Reserve Fund per **Section 45-IC of the RBI Act**. --- ### **Corporate Structure & Group Synergies** The company operates with a lean team of **20 employees** and has **no subsidiaries or joint ventures**. However, it holds significant strategic interests in two **Associate Companies**: 1. **Nahar Spinning Mills Limited** 2. **Nahar Poly Films Limited** **Related Party Financial Arrangements:** The company utilizes its liquidity to support group operations through structured, arm's-length transactions approved by the Audit Committee. * **Loans & Advances:** Authorized to provide up to **₹25 Crores** in outstanding loans to Promoter Group/Associates (2024–2029). * **Material Transactions:** Shareholders have authorized material transactions with Nahar Spinning and Nahar Poly Films for a 5-year period starting September 2023. --- ### **Risk Management & Governance Framework** As an investment-heavy NBFC, the company is inherently exposed to capital market fluctuations and interest rate cycles. #### **Risk Mitigation Strategies** * **Governance:** A **Risk Management Committee (RMC)** of three Non-Executive Directors meets **four times annually** to review policy and tolerance limits. * **Technology:** Implementation of **SAP S4 HANA** for real-time data analytics and internal controls. * **Equity Sensitivity:** A **50 basis points (bps)** shift in equity valuations impacts **Other Comprehensive Income (OCI)** by **₹17.20 Crore**. #### **Credit Default Monitoring** The company is currently managing a specific default regarding its **₹2.00 Crore** investment in **ATS Infrabuild Pvt. Ltd.** (Rated, Listed Debentures). * **Status:** Interest payments defaulted since **June 2023**. * **Provisioning:** Increased to **20%** in FY25 (from 10% in FY24). * **Action:** The Debenture Trustee is pursuing legal recovery; no interest income is being recognized. #### **Liquidity Management** The company maintains significant undrawn borrowing facilities to ensure operational flexibility: | Facility Expiry | March 31, 2024 (₹ Lakhs) | March 31, 2023 (₹ Lakhs) | | :--- | :--- | :--- | | **Within one year** | **1,745.20** | **3,160.10** | | **Beyond one year** | **Nil** | **Nil** | --- ### **Shareholder Value & Market Presence** * **Dividend Track Record:** Proposed a dividend of **₹1.50 per share (30%)** for FY 2024-25. * **Capital Structure:** Paid-up Equity Share Capital of **₹8.37 Crore** (Face Value **₹5**). * **Dematerialization:** **99.25%** of equity capital is held in demat form (as of March 2025), ensuring high liquidity for shareholders. * **Growth Outlook:** Management maintains a **cautious but optimistic** stance, positioning the company to benefit from the resilience of the Indian financial markets and the anticipated economic rebound.