Arc Finance FY26 profit falls to ₹72.47 lakh on higher expenses
Arc Finance reported a net profit of ₹72.47 lakh for FY26, a decline from ₹331.25 lakh in FY25, as total expenses surged to ₹2,710.71 lakh. Revenue from operations rose to ₹2,808.64 lakh, supported by interest income and share sales. The Board approved the audited results and re-appointed auditors for FY 2026-27.
*this image is generated using AI for illustrative purposes only.
Arc Finance reported a net profit of ₹72.47 lakh for the financial year ended March 31, 2026, a significant decline from ₹331.25 lakh in the previous year. Total revenue from operations for FY26 rose to ₹2,808.64 lakh from ₹2,329.61 lakh in FY25, driven by higher interest income and share sales. However, total expenses surged to ₹2,710.71 lakh from ₹1,787.30 lakh in the prior year, primarily due to increased purchases of stock-in-trade and other business-related expenses, which impacted the bottom line.
Financial Performance
The company's total income for FY26 stood at ₹2,808.64 lakh. Interest income increased to ₹610.82 lakh from ₹253.76 lakh, while income from the sale of shares rose to ₹2,195.06 lakh compared to ₹2,075.61 lakh in FY25. Despite the revenue growth, a sharp rise in expenses, including purchases of stock-in-trade amounting to ₹2,168.11 lakh, compressed profitability.
| Particulars | Year ended 31-03-2026 (₹ in Lakh) | Year ended 31-03-2025 (₹ in Lakh) |
|---|---|---|
| Total Revenue From Operations | 2,808.64 | 2,329.61 |
| Interest Income | 610.82 | 253.76 |
| Sale of Shares | 2,195.06 | 2,075.61 |
| Total Expenses | 2,710.71 | 1,787.30 |
| Profit for the period | 72.47 | 331.25 |
Quarterly Results
For the quarter ended March 31, 2026, the company recorded a net profit of ₹47.80 lakh, a sharp drop from ₹337.95 lakh in the corresponding quarter of the previous year. Total revenue from operations for the quarter fell to ₹564.17 lakh from ₹1,236.59 lakh in the same quarter of the prior year. This decline was attributed to reduced income from the sale of shares, which fell to ₹139.49 lakh from ₹1,162.72 lakh.
Board Approvals
The Board of Directors, in its meeting held on May 29, 2026, approved the audited financial results for the quarter and year ended March 31, 2026. Additionally, the board approved the re-appointment of Mr. Akhil Agarwal, Practising Company Secretary, as Secretarial Auditor for FY 2026-27. The firm O. P. Khajanchi, Chartered Accountants, was also re-appointed as the Internal Auditor for the financial year 2026-27.
Auditor's Report
The statutory auditors, SSRV & Associates, issued an unmodified opinion on the standalone annual financial results. The auditors confirmed that the results give a true and fair view of the company's financial performance for the year ended March 31, 2026, in conformity with the recognition and measurement principles laid down in the applicable accounting standards.
Historical Stock Returns for ARC Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | +1.85% | -8.33% | -22.54% | -52.17% | +41.03% |
What strategic measures will Arc Finance implement to control the surge in stock-in-trade purchases and improve profit margins?
Is the sharp decline in quarterly share sale income a temporary market fluctuation or indicative of a longer-term reduction in trading volume?
How does the company plan to sustain the significant growth in interest income given the volatile interest rate environment?
19
Create Custom Screeners 
Access 200+ Pre-built Filters 
Use 50+ Readymade Screener 
