ARC Finance Limited reported a net profit of ₹16.70 lakh for the quarter ended June 30, 2026, representing a 27% year-on-year increase from ₹13.17 lakh in Q1FY25. The growth in profitability was supported by a parallel rise in top-line revenue, with total income from operations climbing to ₹22.57 lakh from ₹17.80 lakh in the same period last year. This performance indicates improved operational efficiency and demand generation during the initial quarter of FY26.

The Board of Directors approved the unaudited financial results at its meeting held on August 11, 2026. The results were subsequently filed with the stock exchanges under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Managing Director Virendra Kumar Soni signed off on the disclosure, which was published in newspapers on August 12, 2026.

Financial Performance Overview

The company’s financial metrics for the quarter reflect consistent growth across key parameters. Earnings per share (EPS) stood at ₹0.002 for both basic and diluted calculations, an improvement from ₹0.003 in the prior year’s comparable quarter when adjusted for share capital changes, though the absolute profit figure shows clear expansion. The equity share capital remained stable at ₹871,509,623 during the period.

What the Numbers Show

The synchronized growth in both revenue and net profit suggests that the company maintained its cost structure effectively while scaling operations. With no exceptional or extraordinary items impacting the bottom line, the entire profit increase is attributable to ordinary business activities. This operational consistency provides a solid foundation for evaluating future quarterly trends, particularly as the company navigates the broader financial services landscape in FY26.

ARC Finance Limited reported a net profit of ₹16.70 lakh for the quarter ended June 30, 2026, marking a 27% increase from ₹13.17 lakh in the corresponding period of FY25. The Kolkata-based financial services company also saw its revenue from operations rise to ₹184.35 lakh, up from ₹81.69 lakh in Q1FY25, driven by higher interest income and gains from share sales.

The Board of Directors approved the unaudited standalone financial results on August 11, 2026, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by SSRV & Associates, the statutory auditors, who issued a limited review report confirming that the statement is free of material misstatement.

Financial Performance Highlights

Interest income, a key revenue stream for the lender, surged to ₹100.02 lakh in Q1FY27 from ₹30.27 lakh in Q1FY25. Additionally, income from the sale of shares contributed ₹84.33 lakh, compared to ₹51.40 lakh in the previous year’s quarter. Dividend income remained negligible at ₹0.00 lakh.

| Particulars | Q1FY27 (₹ Lakh) | Q1FY25 (₹ Lakh) | Change | | ---: | :--- | :--- | :--- | | Revenue From Operations | 184.35 | 81.69 | 126% | | Total Expenses | 161.78 | 63.89 | 153% | | Net Profit | 16.70 | 13.17 | 27% | | Earnings Per Share (Basic) | ₹0.002 | ₹0.003 | -33% |

Total expenses rose sharply to ₹161.78 lakh from ₹63.89 lakh in Q1FY25. This increase was primarily due to changes in inventories of stock-in-trade, which stood at ₹94.73 lakh compared to a negative ₹291.52 lakh in the prior year. Employee benefits expense increased slightly to ₹6.50 lakh from ₹5.19 lakh, while finance costs decreased to ₹0.70 lakh from ₹1.43 lakh.

What the Numbers Show

The divergence between revenue growth and expense expansion warrants attention. While top-line revenue more than doubled year-on-year, total expenses grew at a faster pace (153% vs 126%). This dynamic compressed the operating leverage, resulting in a lower net profit growth rate relative to revenue. The significant variance in inventory changes suggests volatility in trading activities or stock management between periods, impacting the bottom line disproportionately compared to core interest income generation.