CENTRUM - Centrum Capital
📢 Recent Corporate Announcements
Centrum Capital Limited's subsidiary, Centrum Broking Limited (CBL), has been granted a Category-I Merchant Banker license by SEBI. The registration, under number INM000013420, became effective on March 11, 2026. This perpetual license enables CBL to offer a comprehensive suite of merchant banking services, including managing public offerings and corporate advisory. This regulatory approval strengthens Centrum's position in the Indian capital markets and opens new revenue channels.
- Subsidiary Centrum Broking Limited (CBL) receives SEBI Category-I Merchant Banker registration
- Registration number INM000013420 is effective starting March 11, 2026
- The license is granted on a perpetual basis, ensuring long-term operational stability
- Approval allows the group to participate in high-value capital market transactions like IPO management
Centrum Capital Limited has issued a corporate guarantee of Rs 35 crore to Suryoday Small Finance Bank on behalf of its subsidiary, Centrum Housing Finance Limited. The guarantee supports a term loan facility with a tenure of 60 months to aid the subsidiary's operations. Centrum Capital holds a 56.39% stake in the housing finance unit and has opted not to charge a commission for this guarantee. While this increases the parent company's contingent liabilities, it ensures necessary liquidity for its key business segment.
- Issued corporate guarantee worth Rs 35 crore to Suryoday Small Finance Bank.
- Supports a 60-month term loan for subsidiary Centrum Housing Finance Limited.
- Centrum Capital maintains a 56.39% equity stake in the beneficiary subsidiary.
- The transaction is classified as a contingent liability with no immediate financial impact on the parent company.
Centrum Capital reported a significant widening of its consolidated net loss to ₹134.6 crore for the quarter ended December 31, 2025, compared to a loss of ₹68.6 crore in the same period last year. While total income grew slightly to ₹938.8 crore from ₹894.7 crore, total expenses surged to ₹1,097.6 crore, primarily driven by higher finance costs and impairment on financial instruments. For the nine-month period, the net loss reached ₹250.1 crore, significantly higher than the ₹172.8 crore loss in the previous year. The company also raised ₹72.72 crore through debentures during the quarter to support operations.
- Consolidated net loss widened to ₹134.6 crore in Q3 FY26 from ₹68.6 crore in Q3 FY25.
- Total income for the quarter stood at ₹938.8 crore, up from ₹894.7 crore year-on-year.
- Finance costs increased to ₹439.3 crore, while impairment on financial instruments rose to ₹175.6 crore.
- Nine-month (9M FY26) consolidated loss expanded to ₹250.1 crore compared to ₹172.8 crore in 9M FY25.
- Raised ₹72.72 crore through the issuance of debentures during the quarter.
Centrum Capital reported a consolidated net loss of ₹134.6 crore for the quarter ended December 31, 2025, a significant increase from the ₹68.6 crore loss in the same period last year. Total revenue from operations remained relatively flat year-on-year at ₹878.4 crore, while total expenses surged to ₹1,097.6 crore. For the nine-month period ended December 2025, the company's total loss reached ₹250.1 crore compared to ₹172.8 crore in the previous year. Despite the losses, the company successfully raised ₹72.72 crore through debentures during the quarter.
- Consolidated net loss widened to ₹134.6 crore in Q3 FY26 from ₹68.6 crore in Q3 FY25.
- Total revenue from operations for the quarter stood at ₹878.4 crore, showing marginal growth from ₹877.5 crore YoY.
- Finance costs and employee benefit expenses remained high at ₹439.3 crore and ₹183.0 crore respectively.
- Loss per share (EPS) for the quarter was negative at ₹2.23 compared to negative ₹1.26 in the year-ago quarter.
- The company raised ₹7,272 lakhs through the issuance of debentures during the quarter ended December 31, 2025.
Centrum Capital Limited has issued a corporate guarantee worth Rs 5 crore in favor of Mizuho Capsave Finance Private Limited. This guarantee supports a 6-month working capital demand loan for its subsidiary, Centrum Finverse Limited. The company holds a significant indirect stake in Centrum Finverse through its 99.99% ownership of Centrum Financial Services. While this creates a contingent liability, the company reports no immediate impact on its financial position.
- Issued corporate guarantee of Rs 5 crore for subsidiary Centrum Finverse Limited.
- The guarantee supports a Working Capital Demand Loan with a 6-month tenure.
- Centrum Capital holds an indirect majority stake in the subsidiary through Centrum Financial Services.
- The transaction is categorized as a contingent liability with no immediate financial impact.
Centrum Capital has received a crucial regulatory approval from the Reserve Bank of India (RBI) on February 3, 2026, for the sale of its entire stake in its material subsidiary, Centrum Housing Finance Limited (CHFL). The stake is being transferred to Weaver Services Private Limited as per the Share Purchase Agreement signed on August 22, 2025. This approval marks a significant milestone in the divestment process, although final closure remains subject to other conditions precedent. The company issued a corrigendum to correct the RBI approval date from 2025 to 2026.
- RBI approval granted on February 3, 2026, for change in control and acquisition of CHFL by Weaver Services.
- Centrum Capital is divesting its entire stake in its material subsidiary, Centrum Housing Finance Limited.
- The transaction follows the Share Purchase Agreement (SPA) originally entered into on August 22, 2025.
- Final transaction closure is pending the fulfillment of remaining conditions precedent specified in the SPA.
Centrum Capital has received a critical regulatory approval from the Reserve Bank of India (RBI) for the sale of its entire stake in its material subsidiary, Centrum Housing Finance Limited (CHFL). The stake is being acquired by Weaver Services Private Limited, following a Share Purchase Agreement (SPA) signed in August 2025. This approval marks a significant milestone in the divestment process, although final closure remains subject to other conditions precedent. The move is expected to help Centrum Capital unlock value and potentially strengthen its balance sheet.
- RBI approved the change in control and acquisition of CHFL by Weaver Services on February 3, 2025.
- Centrum Capital is divesting its entire stake in its material subsidiary, Centrum Housing Finance.
- The transaction follows the Share Purchase Agreement initially executed on August 22, 2025.
- Final transaction closure is now pending only the remaining conditions precedent specified in the SPA.
Centrum Capital Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended December 31, 2025. The certificate, issued by its Registrar and Share Transfer Agent, MUFG Intime India Private Limited, confirms adherence to dematerialization procedures. Interestingly, the registrar reported that zero requests for dematerialization or rematerialization were received during this specific quarter. This is a standard administrative filing required by all listed Indian companies to ensure the integrity of the shareholding records.
- Compliance certificate filed for the quarter ended December 31, 2025
- Registrar MUFG Intime India confirmed zero dematerialization or rematerialization requests were received
- Confirmation that all regulatory timelines for share register updates were maintained
- Standard procedural filing ensuring the security certificates are mutilated and cancelled after verification
Centrum Capital Limited has scheduled a Board of Directors meeting for February 13, 2026, to review and approve the unaudited standalone and consolidated financial results for the quarter and nine months ending December 31, 2025. In compliance with SEBI insider trading regulations, the trading window for designated persons will be closed from January 1, 2026, until February 15, 2026. This is a standard regulatory procedure ahead of financial disclosures. Investors should monitor the results on the scheduled date for insights into the company's performance.
- Board meeting scheduled for February 13, 2026, to approve Q3 and nine-month financial results.
- Trading window for equity shares closed from January 1, 2026, to February 15, 2026.
- Results cover the period ending December 31, 2025, for both standalone and consolidated entities.
- The announcement follows SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Centrum Capital Limited has issued a corporate guarantee of ₹20,00,00,000 (Rupees Twenty Crores Only) in favor of Beacon Trusteeship Limited. This guarantee is for Non-convertible Debentures (NCDs) proposed to be issued by Centrum Wealth Limited, a material subsidiary. The guarantee has a term of 13 months. The company considers the issuance of the corporate guarantee a contingent liability with no immediate impact.
- Corporate Guarantee of ₹20,00,00,000 for Centrum Wealth Limited NCDs
- Guarantee provided to Beacon Trusteeship Limited
- Centrum Wealth Limited is a material subsidiary
- Guarantee term is for 13 months
Financial Performance
Revenue Growth by Segment
Brokerage revenues grew 11% YoY in H1 FY26, outperforming peers despite industry volume declines. The Wealth Management segment reached an AUM of over INR 41,000 Cr, serving 5,000+ clients across 18 locations. Investment Banking completed major deals including a USD 239 Million (INR 2,032 Cr) FCCB for Zee Entertainment and a INR 3,500 Cr QIP for Bank of Maharashtra.
Geographic Revenue Split
The company operates primarily in India with a presence in Tier-II and Tier-III cities for its affordable housing finance segment. It also maintains an international presence in Singapore to facilitate cross-border financial services. Specific percentage split by region is not disclosed in available documents.
Profitability Margins
The group has faced increasing losses at consolidated levels since FY22. This is primarily due to high provisioning for PMC Bank advances, high operational costs for setting up Unity Small Finance Bank, and incremental finance costs. The divestment of the housing finance business for ~INR 400 Cr is expected to improve capital efficiency.
EBITDA Margin
Core profitability has been impacted by high operating expenses in the early stages of the Small Finance Bank (Unity SFB). The company is targeting a reduction in financing costs by utilizing ~INR 750 Cr of interest-free cash flows from promoter equity and divestments to repay debt, which is expected to improve net margins.
Capital Expenditure
The company raised INR 149.71 Cr through a preferential issue of equity shares in August 2025. Additionally, promoters infused INR 50 Cr in August 2025, with another INR 50 Cr planned by March 2026 and INR 100 Cr in FY27 to strengthen the capital base.
Credit Rating & Borrowing
BWR has assigned a Negative outlook due to continued losses and high promoter share pledges. The company is focused on debt reduction using ~INR 750 Cr in total inflows to lower borrowing costs and strengthen its credit profile.
Operational Drivers
Raw Materials
As a financial services firm, 'Capital' is the primary raw material, supplemented by 'Human Capital' (specialized management teams) and 'Technology Infrastructure' for digital banking.
Import Sources
Capital is sourced domestically from Indian promoters (INR 100 Cr infusion plan), HNIs, and family offices (INR 150 Cr raised in Q2 FY26), and internationally via instruments like FCCBs (USD 239 Million).
Key Suppliers
Not applicable for financial services; however, key capital providers include the Promoters (Jaspal Bindra and Chandir Gidwani), various High-Net-Worth Individuals, and institutional investors in QIPs.
Capacity Expansion
Wealth Management currently manages INR 41,000 Cr AUM across 18 locations. The lending business is being consolidated under Unity Small Finance Bank to leverage its expanding physical and digital reach for scale.
Raw Material Costs
Cost of funds is the primary operational cost. The company is moving toward 'interest-free' cash flows via equity infusions to replace high-cost debt, aiming to unlock ~INR 750 Cr for this purpose.
Manufacturing Efficiency
Efficiency is measured by AUM per client (Wealth) and brokerage revenue growth (11% YoY) relative to industry volume trends.
Logistics & Distribution
Distribution is driven by the physical and digital reach of Unity Bank and the 18-location footprint of the Wealth Management business.
Strategic Growth
Expected Growth Rate
6.70%
Growth Strategy
Growth will be achieved by consolidating all lending activities under Unity Small Finance Bank to improve scale and efficiency. The company is divesting its ~50% stake in Centrum Housing Finance for ~INR 400 Cr to optimize capital. Strategic focus includes expanding the Wealth AUM (currently INR 41,000 Cr) and leveraging a robust Investment Banking pipeline for H2 FY26.
Products & Services
Investment banking, institutional broking, wealth management, insurance broking, affordable housing finance, microfinance, MSME loans, and small finance banking services.
Brand Portfolio
Centrum, Unity Small Finance Bank, Centrum Wealth, Centrum Housing Finance.
New Products/Services
Expansion of the Wealth product portfolio to include bespoke investment solutions and scaling digital banking products through Unity SFB.
Market Expansion
Focusing on underserved markets in Tier-II and Tier-III cities for lending, while expanding institutional engagement in the equities business.
Market Share & Ranking
Centrum is a Category I Merchant Banker. Its brokerage revenue grew 11% YoY, outperforming the general industry trend of volume declines.
Strategic Alliances
Amalgamation with Punjab and Maharashtra Co-operative Bank (PMC Bank) to form/expand Unity Small Finance Bank.
External Factors
Industry Trends
The industry is shifting toward integrated 'Phygital' banking models. Centrum is positioning itself by merging traditional lending into Unity SFB to leverage both physical branches and digital scale, while the wealth industry is seeing a trend toward bespoke, award-winning advisory services.
Competitive Landscape
Competes with major Indian financial conglomerates and specialized wealth managers. Outperformed peers in brokerage growth (11% vs industry decline) in H1 FY26.
Competitive Moat
Moat is built on a diversified financial services model (fee + lending) and a leadership team with 30+ years of experience (e.g., Jaspal Bindra). This diversification ensures revenue continuity even when specific segments like institutional broking face industry-wide volume declines.
Macro Economic Sensitivity
Highly sensitive to interest rate cycles and stock market volatility, which affects both the lending margins and fee-based investment banking income.
Consumer Behavior
Shift toward affordable housing in Tier-II/III cities and increasing demand for professional wealth management among HNIs (AUM >INR 41,000 Cr).
Geopolitical Risks
Exposure to global capital flow sentiment which impacts the ability to place large issues like the Bank of Maharashtra QIP or Zee FCCB.
Regulatory & Governance
Industry Regulations
Operations are governed by RBI (for Unity SFB and NBFC arms) and SEBI (for Merchant Banking and Broking). Compliance with Regulation 33 and 34 of Listing Regulations is maintained.
Environmental Compliance
Not a high-impact factor for financial services; ESG focus is primarily on governance and social impact through affordable housing and microfinance.
Taxation Policy Impact
Financial results are prepared in compliance with Ind AS; specific effective tax rate % is not disclosed in the summary statements.
Legal Contingencies
The group integrated PMC Bank in Q4 FY22, involving significant credit costs and provisioning for legacy advances. No other specific pending court case values in INR were disclosed in the provided text.
Risk Analysis
Key Uncertainties
The primary uncertainty is the timeline for the Small Finance Bank to reach profitability given high initial operating expenses and the integration of legacy PMC Bank assets.
Geographic Concentration Risk
Significant concentration in India, specifically in Tier-II and Tier-III cities for the lending business.
Third Party Dependencies
Dependency on regulatory bodies (RBI/SEBI) for approval of structural changes like the CHFL divestment.
Technology Obsolescence Risk
Risk of falling behind in digital banking; mitigated by the strategic focus on Unity SFB's digital reach.
Credit & Counterparty Risk
Deterioration in asset quality of lending entities is a noted constraint; mitigated by high provisioning (especially for legacy PMC Bank accounts).