India Lease Development Limited has disclosed its related party transactions for the second half of the financial year ended March 31, 2026, reporting a total transaction value of ₹24.96 lakh. The filing, submitted to BSE Limited, details transactions involving Key Managerial Personnel (KMP) and a promoter group entity, adhering to Regulation 23(9) of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

The disclosure covers the period from October 01, 2025, to March 31, 2026. The primary transactions included remuneration for KMPs and a defined benefit obligation for gratuity benefits. Additionally, the company reported an investment transaction with a promoter group entity.

Transaction Details

The table below outlines the specific related party transactions undertaken during the reporting period:

Investment and Balances

The company recorded an investment of ₹106.89 lakh in The Motor and General Finance Limited, a promoter group entity. The opening and closing balances for this investment were reported at ₹0.00 and ₹106.89 lakh, respectively. No financial indebtedness was incurred to facilitate this investment.

The gratuity provisions for KMPs, totaling ₹14.67 lakh, were noted as yearly provisions. The audit committee approval remarks for these transactions were marked as NA (Not Applicable) in the filing.

India Lease Development Limited returned to profitability in the fiscal year ended March 31, 2026, reporting a net profit of ₹2.10 lakh compared to a net loss of ₹11.72 lakh in the previous year. The company’s total revenue from operations rose to ₹62.19 lakh for FY26, up from ₹55.14 lakh in FY25, driven primarily by interest income and net gains on fair value changes. The Board of Directors approved the standalone audited financial results on May 28, 2026, following the recommendations of the Audit Committee.

The company’s financial performance for the fourth quarter ended March 31, 2026, also showed improvement, with a net profit of ₹6.11 lakh. This contrasts with a net loss of ₹6.60 lakh in the same quarter of the previous year. Revenue for Q4FY26 stood at ₹21.97 lakh, a significant increase from the ₹14.57 lakh reported in Q4FY25. The positive results were supported by a net gain on fair value changes of ₹9.13 lakh recorded during the quarter.

Financial Results Overview

The following table summarizes the standalone audited financial results for the quarter and year ended March 31, 2026:

Auditor's Observations and Management Response

M/s Jagdish Chand & Co., Chartered Accountants, the statutory auditors, provided an unmodified opinion on the financial results. However, the auditors included an emphasis of matter paragraph noting that the company did not satisfy the principal business criteria prescribed under Section 45-I(f) of the Reserve Bank of India Act, 1934. This was because financial assets were less than 50% of total assets during part of the financial year and as of March 31, 2026.

The management clarified that investments in bank fixed deposits are primarily for safety, liquidity management, and treasury purposes pending deployment in financing activities. They stated that such deployment is temporary in nature and not intended to change the principal business of the company. Additionally, the auditors noted that the company sold quoted investments in equity shares based on an independent valuer's report, which was lower than prevailing quoted market prices, resulting in a loss of ₹35.80 lakh accounted for in Other Comprehensive Income.

Assets and Liabilities

The statement of assets and liabilities as of March 31, 2026, showed total assets at ₹967.80 lakh, a decrease from ₹1,078.15 lakh in the previous year. Financial assets constituted a significant portion, with investments at ₹424.75 lakh and bank balances at ₹500.00 lakh. Equity share capital remained constant at ₹1,471.30 lakh, while other equity stood at a negative balance of ₹533.66 lakh. The company stated that it has discontinued fresh hire purchase and leasing business but continues to prepare financial results on a going concern basis, anticipating sufficient funds from asset realization to meet liabilities.