Morarka Finance Q2FY27 Results: Net profit down 88% YoY to ₹13.61 lakh
- Net profit for Q2FY27 fell 88% YoY to ₹13.61 lakh
- Total revenue from operations dropped 78.5% YoY to ₹34.65 lakh
- Dividend income declined sharply to ₹22.48 lakh from ₹135.81 lakh in Q2FY26
- Total Comprehensive Income was negative at ₹141.24 lakh due to OCI losses
- Cash and cash equivalents reduced to ₹3.42 lakh as of September 30, 2026
*this image is generated using AI for illustrative purposes only.
Morarka Finance Limited reported a standalone net profit of ₹13.61 lakh for the quarter ended September 30, 2026 (Q2FY27), marking an 88% decline compared to ₹112.06 lakh in the corresponding period last year.
The company’s total revenue from operations stood at ₹34.65 lakh in Q2FY27, down significantly from ₹161.64 lakh in Q2FY26. The drop in earnings was primarily driven by a sharp contraction in dividend income and interest income, which are the key contributors to the company’s top line.
Financial Performance Overview
For the six months ended September 30, 2026 (H1FY27), Morarka Finance clocked a net profit of ₹51.57 lakh, a decrease of 59% from ₹126.02 lakh in H1FY26. Total income for the half-year period was ₹92.83 lakh, reflecting a 51% decline year-on-year.
The following table details the key financial metrics for the quarter and half-year periods:
| Metric | Q2FY27 | Q2FY26 | Change (%) | H1FY27 | H1FY26 | Change (%) |
|---|---|---|---|---|---|---|
| Total Revenue from Operations | ₹34.65 lakh | ₹161.64 lakh | -78.5% | ₹92.83 lakh | ₹191.11 lakh | -51.4% |
| Profit Before Tax | ₹24.19 lakh | ₹149.35 lakh | -83.8% | ₹69.88 lakh | ₹164.01 lakh | -57.4% |
| Net Profit | ₹13.61 lakh | ₹112.06 lakh | -87.8% | ₹51.57 lakh | ₹126.02 lakh | -59.1% |
| EPS (Basic) | ₹0.30 | ₹2.49 | -87.9% | ₹1.15 | ₹2.80 | -58.9% |
Revenue Composition Analysis
Dividend income remained the largest component of revenue but fell sharply to ₹22.48 lakh in Q2FY27 from ₹135.81 lakh in Q2FY26. Interest income also contracted significantly, dropping to ₹0.23 lakh from ₹7.53 lakh in the previous year's quarter. Rental income and fees/commission income remained relatively stable at ₹3.88 lakh and ₹9.75 lakh respectively.
What the Numbers Show
A divergence between operating profitability and comprehensive income is evident in the latest results. While the company reported a positive net profit of ₹13.61 lakh, its Total Comprehensive Income was negative at (₹141.24) lakh. This disparity is driven by Other Comprehensive Income (OCI), which recorded a loss of (₹154.85) lakh due to fair value changes on investments not reclassified to profit or loss. This indicates that while the core P&L remains profitable, the mark-to-market valuation of the company’s investment portfolio has deteriorated significantly during the quarter.
Balance Sheet Position
As of September 30, 2026, the company’s total assets stood at ₹11,080.18 lakh, with investments constituting the bulk at ₹11,020.81 lakh. Cash and cash equivalents decreased to ₹3.42 lakh from ₹11.78 lakh as of March 31, 2026. The company’s equity base was reported at ₹11,015.30 lakh, comprising share capital of ₹450.21 lakh and other equity of ₹10,565.09 lakh.
Historical Stock Returns for Morarka Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -7.94% | -6.73% | -14.67% | +0.26% | -43.98% | -34.32% |
Which specific equity holdings in Morarka Finance's investment portfolio are driving the significant negative fair value changes recorded in Other Comprehensive Income?
How does the 78% decline in dividend income correlate with recent corporate actions or earnings misses by the specific companies in which Morarka Finance holds stakes?
Given that investments constitute nearly 99% of total assets, what is the company's strategy to mitigate further mark-to-market volatility and stabilize its comprehensive income?
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