Leading Leasing Finance reported a net loss of ₹20.36 crore for the quarter ended June 30, 2026, reversing the ₹5.67 crore profit posted in the same period last year.

The Board of Directors approved the unaudited financial results on August 22, 2026. Statutory auditors S.K. Bhavsar & Co. issued a limited review report with an emphasis of matter regarding pending verifications for trade receivables, payables, and loans.

Financial Performance

Total income rose to ₹180.42 crore in Q1FY27 from ₹16.92 crore in Q1FY26. This increase was driven by a surge in revenue from operations to ₹120.13 crore, up from ₹11.08 crore year-on-year. Other income also expanded significantly to ₹60.29 crore, compared to ₹5.84 crore in the prior year quarter.

Expenses climbed sharply to ₹200.79 crore, outpacing income growth. Purchases of stock-in-trade accounted for ₹160.86 crore, while changes in inventories added ₹30.49 crore to costs. Finance costs remained relatively stable at ₹8.94 crore, slightly down from ₹9.77 crore in Q1FY26.

What the Numbers Show

The divergence between revenue growth and profitability is stark. While top-line revenue grew nearly tenfold, the company incurred a significant loss due to disproportionate expense inflation. Specifically, purchases of stock-in-trade alone exceeded total revenue from operations, indicating that the cost of acquiring inventory was higher than the sales generated during the quarter. Additionally, other income contributed over one-third of total income, highlighting a dependency on non-operational revenue streams alongside core leasing activities.

Balance Sheet and Capital

Paid-up equity share capital stood at ₹56.36 crore, an increase from ₹53.86 crore in the previous year. The company reported no debt securities or debenture redemption reserves as of the balance sheet date. Reserves excluding revaluation reserves were not disclosed for the current quarter but stood at ₹684.51 crore as of March 31, 2026.

Earnings per share turned negative at ₹-0.36, compared to ₹0.11 in Q1FY26. The company does not have reportable segments under Ind AS standards.

Leading Leasing Finance and Investment Company Limited has withdrawn its in-principle approval applications for the preferential allotment of 45 crore equity shares. The Board of Directors approved the withdrawal of applications submitted to BSE Limited and Metropolitan Stock Exchange of India Limited during a meeting held on July 16, 2026. The decision impacts the proposed issuance of 40 crore shares to the Non-Promoter Category upon conversion of outstanding unsecured loans and an additional 5 crore shares on a preferential basis.

The meeting, which commenced at 02:00 P.M. and concluded at 02:40 P.M., was chaired to deliberate on the company's capital-raising strategies. The Board determined that proceeding with the applications was no longer necessary, leading to the formal withdrawal of the requests for approval from both exchanges.

Details of Withdrawn Applications

The applications covered two distinct categories of share allotment. The table below outlines the specific details of the withdrawn proposals:

The withdrawal of these applications signifies a shift in the company's approach to managing its capital structure and unsecured liabilities. By retracting the proposals, the company avoids the dilution of equity that would have resulted from the issuance of these shares.

Board Meeting Proceedings

The Board meeting was convened specifically to address the status of the pending applications. Following the review, the directors unanimously agreed to withdraw the in-principle approval requests. The company has communicated the outcome to the respective exchanges to ensure the records are updated accordingly.