Kumbhat Financial FY26 results: net profit falls 39% on cost surge
- Net profit fell 39.23% YoY to ₹82.55 lakh in FY26
- Total income surged 245.44% to ₹710.00 lakh on lending expansion
- Expenditure skyrocketed 1,419.82% to ₹643.15 lakh due to finance costs
- Loans and advances grew to ₹2,689.51 lakh; net debt rose to ₹1,948.23 lakh
*this image is generated using AI for illustrative purposes only.
Kumbhat Financial Services reported a 39.23% year-on-year decline in profit after tax (PAT) for the financial year ended March 31, 2026, driven by a sharp rise in operating and finance costs.
The NBFC posted a PAT of ₹82.55 lakh for FY26, down from ₹135.85 lakh in the previous fiscal. Total income, however, surged 245.44% to ₹710.00 lakh from ₹205.54 lakh, reflecting significant expansion in lending operations.
Financial Performance
The company's profit before tax (PBT) fell 59.04% to ₹66.85 lakh against ₹163.20 lakh in FY25. Total expenditure skyrocketed 1,419.82% to ₹643.15 lakh from ₹42.34 lakh, primarily attributable to increased finance costs and fees associated with business expansion.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Total Income | ₹710.00 lakh | ₹205.54 lakh | +245.44% |
| Total Expenditure | ₹643.15 lakh | ₹42.34 lakh | +1,419.82% |
| PBT | ₹66.85 lakh | ₹163.20 lakh | -59.04% |
| PAT | ₹82.55 lakh | ₹135.85 lakh | -39.23% |
Basic earnings per share (EPS) declined 45.80% to ₹1.55 from ₹2.86.
What the Numbers Show
The divergence between revenue growth and profitability highlights the cost intensity of scaling lending operations. While interest income grew significantly, finance costs rose to ₹203.01 lakh from ₹73.25 lakh, and fees and commission expenses jumped to ₹357.69 lakh from ₹88.94 lakh. These expense increases outpaced revenue generation, compressing margins despite higher top-line figures.
Balance Sheet and Capital
Loans and advances stood at ₹2,689.51 lakh as of March 31, 2026, up from ₹1,773.44 lakh in the previous year. The company maintained an unsecured loan portfolio with provisions for credit-impaired assets totaling ₹29.50 lakh.
Net debt increased to ₹1,948.23 lakh from ₹1,119.01 lakh, as borrowings rose to ₹1,962.50 lakh against cash and cash equivalents of ₹14.27 lakh. The net owned fund (NOF) was ₹612.21 lakh, meeting the current RBI requirement of ₹5 crore.
Corporate Actions
The Board did not recommend any dividend for FY26. The company has scheduled its 33rd Annual General Meeting for September 24, 2026, to approve audited financials and seek shareholder consent for enhancing borrowing limits to ₹43 crore.
Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE795E01019/85f2e167-b6fc-4614-9d09-06c3dab2d142.pdf
Historical Stock Returns for Kumbhat Financial Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.96% | -1.34% | 0.0% | -3.16% | -7.99% | 0.0% |
How will the proposed increase in borrowing limits to ₹43 crore impact Kumbhat Financial Services' leverage ratios and interest coverage in the coming fiscal year?
What specific operational strategies is management implementing to curb the 1,419% surge in total expenditure and restore profit margins?
Given the absence of a dividend recommendation, what alternative capital allocation plans or growth initiatives should shareholders anticipate at the upcoming AGM?
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