Kapil Raj Finance Limited reported a return to profitability in Q1FY27, posting a net profit of ₹12.50 lakh compared to a net loss of ₹7.26 lakh in the preceding quarter. The quarterly result marks a recovery for the NBFC, driven primarily by a surge in interest income, which doubled to ₹20.00 lakh from ₹10.00 lakh in Q1FY26. Total income for the quarter stood at ₹20.00 lakh, while total expenses decreased slightly to ₹7.50 lakh from ₹7.26 lakh in Q4FY26.

The Board of Directors approved the standalone unaudited financial results for the quarter ended June 30, 2026, during a meeting held on August 8, 2026. The results were prepared in accordance with Ind AS and reviewed by GAMS & Associates LLP, the independent auditors. The review was conducted under Standard on Review Engagement (SRE) 2410, providing moderate assurance that the statements are free from material misstatement. No current or deferred tax expenses were recorded for the period.

Financial Performance

Interest income emerged as the sole revenue driver for the company in the quarter, accounting for the entire ₹20.00 lakh income. Other income was nil for the quarter, though it contributed ₹10.45 lakh in the full year ended March 31, 2026. On the expense side, employee benefits increased to ₹1.50 lakh from ₹0.75 lakh in the previous quarter, while other expenses declined to ₹6.00 lakh from ₹6.51 lakh. There were no finance costs or impairment charges reported.

Operational Updates

In addition to approving the financial results, the Board authorized a change in the company’s registered and administrative offices. The address has been shifted from 23, II Floor, North West Avenue, Club Road, West Punjabi Bagh, New Delhi-110026, to Unit no 1018, 9th Floor, Pearl Omaxe, Plot no B1, Netaji Subhash Place, Pitampura, Delhi-110034. This operational update aims to streamline administrative functions at the new location.

What the Numbers Show

The shift from a quarterly loss of ₹7.26 lakh to a profit of ₹12.50 lakh highlights the sensitivity of Kapil Raj Finance’s bottom line to interest income fluctuations. With other income absent and operating expenses remaining relatively stable between ₹7.26 lakh and ₹7.50 lakh over two quarters, the doubling of interest income was the decisive factor in restoring profitability. The absence of finance costs suggests a low-leverage or asset-light structure for the period, allowing the full benefit of interest accruals to flow to the bottom line.

Kapil Raj Finance has appointed Harit Anand as an Additional Executive Director, effective July 29, 2026. The Board of Directors approved the appointment during a meeting held on the same day at the company’s registered office in New Delhi. This addition to the leadership team aims to leverage Anand’s expertise in managing domestic and cross-border business relationships to drive strategic decision-making and business growth.

The appointment was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Part A of Schedule III thereto. The Board acted on the recommendation of the Nomination and Remuneration Committee. Under the regulations, Anand serves as an Additional Director until the ensuing General Meeting of the Company, where his appointment will require shareholder approval for formal ratification.

Harit Anand, who holds DIN 11812939, brings extensive knowledge of corporate and real estate sectors to the board. His professional background includes managing complex business relationships across borders. The company disclosed that Anand has no relationship with existing directors and is not debarred from holding office by SEBI or any other authority.

Appointment Details

The Board meeting commenced at 1:00 P.M. and concluded at 2:00 P.M. on July 29, 2026. Santosh Rani, Whole Time Director and CFO, signed the disclosure submitted to BSE Limited. The company cited SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated January 30, 2026, in its disclosure requirements.

Strategic Context

The appointment signals Kapil Raj Finance’s intent to strengthen its governance structure with specialized expertise. Anand’s profile emphasizes strategic decision-making capabilities, which aligns with the company’s focus on expanding its business footprint. The lack of familial or professional ties with existing directors ensures independent oversight in his new role.