Dynamic Portfolio Q1FY27 net profit up 42% to ₹16.49 lakh
Dynamic Portfolio Management & Services Ltd reported a net profit of ₹16.49 lakh for Q1FY27, up 42% YoY, driven by a 57% surge in interest income to ₹38.07 lakh. Total revenue rose 63% to ₹39.57 lakh despite a 94% increase in expenses. Borrowings jumped to ₹252.50 lakh from ₹75.00 lakh to fund asset expansion.
*this image is generated using AI for illustrative purposes only.
Dynamic Portfolio Management & Services Ltd reported a net profit of ₹16.49 lakh for the quarter ended June 30, 2026, marking a 42% increase from ₹11.62 lakh in the same period of FY25. The company’s total revenue rose 63% year-on-year to ₹39.57 lakh, driven by a significant jump in interest income.
The board of directors approved the unaudited financial results on August 13, 2026, alongside key corporate governance appointments. These included the recommendation of M/s. Rajesh B Mangla & Associates as statutory auditors for a five-year term and the appointment of Ms. Nainna Guptaa as an additional non-executive director.
Financial Performance
The NBFC’s top-line growth was underpinned by its core lending business. Interest income surged to ₹38.07 lakh in Q1FY27 from ₹24.24 lakh in Q1FY25, representing a 57% increase. This outpaced the growth in total expenses, which stood at ₹16.90 lakh compared to ₹8.72 lakh in the prior year period. Other income contributed ₹1.50 lakh to the total revenue.
| Metric | Q1FY27 (₹ lakh) | Q1FY25 (₹ lakh) | Change |
|---|---|---|---|
| Interest Income | 38.07 | 24.24 | +57% |
| Total Revenue | 39.57 | 24.24 | +63% |
| Total Expenses | 16.90 | 8.72 | +94% |
| Net Profit | 16.49 | 11.62 | +42% |
Profit before tax (PBT) increased to ₹22.68 lakh from ₹15.51 lakh. Current tax expense was recorded at ₹6.19 lakh, up from ₹3.89 lakh in the previous year. Earnings per share (EPS) rose to ₹0.14 from ₹0.10.
Balance Sheet and Cash Flow
As of June 30, 2026, total assets expanded to ₹1,623.29 lakh from ₹1,422.09 lakh at the end of FY26. This growth was largely attributed to an increase in loans and advances, which stood at ₹1,314.23 lakh compared to ₹1,306.68 lakh previously. Property, plant, and equipment saw a significant rise to ₹189.15 lakh from ₹0.16 lakh, indicating capital expenditure during the quarter.
On the liability side, borrowings increased sharply to ₹252.50 lakh from ₹75.00 lakh, suggesting leveraged expansion. Equity share capital remained unchanged at ₹1,161.29 lakh, while other equity reserves grew to ₹101.18 lakh from ₹84.69 lakh.
Cash flow from operating activities resulted in a net inflow of ₹22.19 lakh, down from ₹29.86 lakh in the preceding year. However, investing activities consumed ₹198.46 lakh, primarily due to fixed asset purchases of ₹190.92 lakh. Financing activities provided ₹177.50 lakh through increased borrowings.
What the Numbers Show
The divergence between revenue growth and expense inflation warrants attention. While interest income grew by 57%, total expenses nearly doubled (up 94%) year-on-year. Legal and professional fees rose significantly to ₹2.43 lakh from ₹0.33 lakh, and other general expenses increased to ₹6.66 lakh from ₹3.97 lakh. Despite this cost pressure, the company maintained profitability, though the margin expansion was modest relative to the top-line surge.
Corporate Actions
In addition to financial results, the board approved several administrative changes:
- Statutory Auditor Appointment: M/s. Rajesh B Mangla & Associates was recommended for appointment as statutory auditors for five consecutive years, subject to shareholder approval at the upcoming annual general meeting.
- Board Addition: Ms. Nainna Guptaa was appointed as an additional non-executive director effective August 13, 2026. She brings experience in microfinance and credit risk management, having founded HindSe, a microfinance brand.
- Director Re-appointment: Mr. Kailash Chandra Agarwal, who retires by rotation, was re-appointed as a director.
The financial statements were reviewed by Arora & Bansal, Chartered Accountants, who issued a clean review report stating no material misstatements were found.
Historical Stock Returns for Dynamic Portfolio
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -9.37% | -6.13% | -37.32% | -22.40% | +367.29% |
How will the 94% surge in total expenses, particularly legal and professional fees, impact the company's net profit margins in subsequent quarters?
What is the strategic rationale behind the sharp increase in borrowings to ₹252.50 lakh, and how does this leverage affect the company's risk profile?
How might the appointment of Ms. Nainna Guptaa, with her microfinance background, influence Dynamic Portfolio's credit risk management and lending strategies?
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