Brijlaxmi Leasing & Finance reported a net profit of ₹15.39 lakh for the quarter ended June 30, 2026 (Q1FY27), a decline of 17.7% compared to ₹18.71 lakh in the corresponding period of FY26. The company’s total revenue from operations fell 10.5% year-on-year to ₹82.40 lakh, down from ₹56.49 lakh in Q1FY26. While interest income rose 45.1% to ₹81.77 lakh from ₹56.34 lakh, this growth was more than offset by a significant contraction in other revenue streams.

The Board of Directors approved the unaudited standalone financial results on August 12, 2026. The figures were reviewed by Maheshwari & Co., Chartered Accountants, Mumbai, who issued a limited review report pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance

Interest income, the primary revenue driver, increased to ₹81.77 lakh from ₹56.34 lakh in the previous year’s quarter. However, fees and commission income dropped sharply to ₹0.60 lakh from ₹3.00 lakh in Q4FY26 and ₹0.15 lakh in Q1FY26. Other revenue from operations also contracted significantly to ₹0.03 lakh, compared to ₹4.57 lakh in the preceding quarter and nil in the same quarter last year.

Total expenses for the quarter stood at ₹61.52 lakh, down from ₹79.49 lakh in Q4FY26 but up from ₹32.50 lakh in Q1FY26. This increase was primarily driven by a surge in professional and legal fees, which rose to ₹17.70 lakh from ₹0.70 lakh in the prior year’s quarter. Employee benefit expenses also increased to ₹17.67 lakh from ₹9.93 lakh. Finance costs remained stable at ₹19.78 lakh.

Note: Revenue growth is driven by interest income; expense growth is driven by professional/legal fees.

What the Numbers Show

The divergence between revenue growth and profit decline highlights a cost structure pressure. While top-line revenue grew 45.9% year-on-year, total expenses surged 89.3% over the same period. Professional and legal fees alone accounted for nearly 29% of total expenses in Q1FY27, up from just 2.2% in Q1FY26. This disproportionate rise in operating costs eroded the benefit of higher interest income, leading to a lower net profit despite significantly higher revenue.

Auditor Emphasis of Matter

The independent auditor’s report included an emphasis of matter regarding two key issues:

• TDS Non-Compliance: The company has not complied with provisions relating to the deduction, deposit, and reporting of Tax Deducted at Source (TDS) as required under the Income-tax Act, 2025. The TDS balances and related statutory liabilities are subject to reconciliation, and consequential adjustments have not been fully determined or accounted for in the financial results.
• Unrecognized Interest Income: Interest income on loans advanced to certain parties has not been recognized because these borrowers are facing financial difficulties and are unable to pay interest. However, the company considers these loans to be fully recoverable.

The management stated it does not expect any material adjustment affecting the financial statements upon reconciliation of these items. The basic and diluted earnings per share (EPS) for the quarter were ₹0.24, down from ₹0.29 in Q1FY26.

Brijlaxmi Leasing & Finance Limited reported a 58.2% decline in net profit to ₹66.17 lakh for the financial year ended March 31, 2026, down from ₹158.29 lakh in the previous year. Revenue from operations fell significantly to ₹283.56 lakh compared to ₹634.40 lakh in FY25, primarily due to the absence of one-time gains recorded in the prior year. The company's net worth stood at ₹6.89 crore as of March 31, 2026.

The Board of Directors approved the audited financial results at a meeting held on May 30, 2026. For the quarter ended March 31, 2026, the company posted a net profit of ₹2.74 lakh, with revenue from operations at ₹86.43 lakh. Total expenditure for the year was reported at ₹197.55 lakh, a decrease from ₹420.42 lakh in the previous year.

Auditor's Observations

Maheshwari & Co., the statutory auditor, issued a qualified opinion on the financial results. The report highlighted that the company has not complied with the requirements of Ind AS 19 regarding employee benefits, failing to recognise and disclose liabilities and expenses related to defined benefit obligations. Additionally, the auditor noted that interest income was not recognised on outstanding loans and advances due to insufficient documentation to determine interest rates.

The auditor also drew attention to balances in trade receivables, trade payables, and advances to suppliers, stating they are subject to confirmation and reconciliation. Statutory compliance with respect to GST and TDS was also noted as being subject to reconciliation and subsequent adjustment.

Financial Position

The company's balance sheet shows total assets of ₹2,840.62 lakh as of March 31, 2026, compared to ₹1,952.94 lakh in the previous year. Borrowings, excluding debt securities, increased to ₹2,080.27 lakh from ₹1,311.39 lakh. Cash and cash equivalents turned negative at ₹(22.43) lakh, a sharp reversal from the positive balance of ₹433.38 lakh in FY25.

In a separate submission to BSE, the company provided details for the determination of its Large Corporate status. Outstanding long-term borrowings at the end of FY26 were reported at ₹8.34 crore, with incremental borrowings during the year at ₹14.72 crore. The company stated it had not raised funds through the issuance of debt securities during the year.