Abhinav Leasing & Finance reported a net profit of ₹65.9 lakh for FY26, up from ₹23 lakh in the prior year. Revenue from operations fell sharply to ₹65 lakh, down from ₹392 lakh in FY25.

The NBFC-ICC attributed the profit growth to improved operational efficiency and prudent cost management. Total income stood at ₹65.5 lakh against expenses of ₹56.4 lakh.

Financial Performance

The company's profitability improved significantly despite a contraction in top-line figures. Basic earnings per share (EPS) rose to ₹0.13 from ₹0.04 in the previous year.

Interest income contributed ₹28.6 lakh to the total revenue, reflecting the core lending activities. Other income rose to ₹6.1 lakh from ₹37,800 in FY25, driven primarily by a profit on the sale of investments.

Balance Sheet and Assets

Total assets grew to ₹452 crore as of March 31, 2026, up from ₹319 crore in FY25. This expansion was led by a significant increase in loans and advances, which rose 67% to ₹373.8 crore. Non-current financial liabilities increased to ₹379.9 crore from ₹255 crore, indicating higher leverage to fund the loan book growth.

Cash and cash equivalents declined to ₹23.9 lakh from ₹52 lakh. The company cleared its short-term borrowings, reducing them to zero from ₹21.9 lakh in the prior year.

Governance and Compliance

The Board held eight meetings during the year. Mr. Prateek Singh resigned as an Independent Director effective August 12, 2026. The company appointed Mr. Deepanshu Mittal as Company Secretary, who also resigned shortly after in June 2026.

Auditor Qualification

Statutory auditors GAMS & Associates LLP qualified their report regarding the company's accounting software. The software used for maintaining books lacked an audit trail (edit log) feature. Management stated it is updating the software to include this capability.

What the Numbers Show

The divergence between revenue and profit is notable. While revenue contracted by over 83%, net profit nearly tripled. This was driven by a sharper decline in total expenses (85.6%) compared to income. Additionally, interest income constituted roughly 44% of total revenue, underscoring the reliance on lending yields despite the overall volume drop in operations.

Abhinav Leasing & Finance reported a net profit of ₹15.68 crore for the quarter ended June 30, 2026 (Q1FY27), marking a significant turnaround from the net loss of ₹31.60 crore recorded in Q4FY26. The company’s revenue from operations more than doubled to ₹81.32 crore in the current quarter, up from ₹35.27 crore in the same period last year. This operational improvement coincides with the resignation of Independent Director Prateek Singh, who stepped down effective August 12, 2026, due to personal commitments.

The Board of Directors approved the unaudited financial results during a meeting held on August 12, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The statutory auditor, GAMS & Associates LLP, conducted a limited review of the financial statements pursuant to Standard on Review Engagements (SRE) 2410. Additionally, the company confirmed under Regulation 32 that there were no deviations or variations in the use of proceeds from its Initial Public Offer for the quarter ended June 30, 2026.

Financial Performance Highlights

The company’s total income stood at ₹81.32 crore for Q1FY27, compared to ₹205.69 crore in Q4FY26 and ₹35.27 crore in Q1FY26. Total expenses decreased significantly to ₹65.64 crore from ₹212.07 crore in the previous quarter, driven largely by lower finance costs and other expenses.

Note: Net loss for Q4FY26 includes tax benefits; Profit Before Tax was (₹6.38) crore.

Finance costs remained a significant expense component at ₹43.74 crore in Q1FY27, down from ₹88.39 crore in Q4FY26 but higher than the nil figure reported in Q1FY26. Employee benefit expenses rose to ₹5.74 crore from ₹1.81 crore year-ago. The company operates in a single primary business segment — Trading of Shares and Securities — making operating segment disclosures under IND AS 108 inapplicable.

Leadership Change

Independent Director Prateek Singh (DIN: 11342647) resigned from his position effective August 12, 2026. In his resignation letter, Singh cited personal and unavoidable circumstances as the reason for stepping down. He confirmed that there are no unresolved disputes with the company on any matter and no other material reasons for his resignation. The Board accepted his resignation and noted that he holds no directorships in other listed entities. Atul Kumar Agarwal, Director, signed the communication to the BSE Limited.

What the Numbers Show

The reversal from a quarterly loss to a profit of ₹15.68 crore highlights improved cost management, particularly in controlling finance costs which halved compared to the preceding quarter. However, the profit margin remains sensitive to interest rates given the high absolute level of finance costs relative to revenue. The doubling of revenue year-on-year suggests increased trading activity or volume in shares and securities, though the company did not disclose specific transaction volumes. Investors should monitor whether this revenue growth is sustainable and if finance costs will continue to decline in subsequent quarters.