Nalin Lease Finance Q1 net profit rises 20.6% to ₹111.46 lakh

2 min read Updated on 17 Jul 2026, 01:45 PM

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Naman SScanX News Team

AI Summary

Nalin Lease Finance reported a 20.6% YoY rise in Q1FY27 net profit to ₹111.46 lakh, supported by a 34.5% jump in interest income to ₹207.95 lakh. Total revenue increased 4.7% to ₹214.43 lakh, while total expenses rose to ₹89.16 lakh. The board approved the unaudited results on July 17, 2026, with earnings per share improving to ₹1.70.

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Nalin Lease Finance reported a 20.6% year-on-year increase in net profit to ₹111.46 lakh for the quarter ended June 30, 2026, driven by higher interest income. The non-banking financial company’s revenue from operations grew 4.7% to ₹214.43 lakh from ₹204.76 lakh in the corresponding quarter of the previous year. Interest income, the primary revenue driver, surged 34.5% to ₹207.95 lakh, while other revenue from operations declined to ₹6.48 lakh from ₹7.50 lakh a year ago.

The board of directors approved the unaudited standalone financial results for Q1FY27 at its meeting held on July 17, 2026. The results were reviewed by the audit committee and subjected to a limited review by the statutory auditors, Paresh Thothawala & Co., Chartered Accountants. The auditors confirmed that the financial statements were prepared in accordance with Indian Accounting Standards (Ind AS) and complied with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Total income for the quarter stood at ₹242.96 lakh, compared to ₹208.91 lakh in Q1FY26. The company managed its expenses efficiently, with total expenses increasing to ₹89.16 lakh from ₹73.55 lakh in the prior year quarter. Finance costs rose significantly to ₹24.49 lakh from ₹5.96 lakh, while impairment on financial instruments decreased to ₹8.21 lakh from ₹12.10 lakh. Profit before tax for the period was recorded at ₹153.80 lakh, up from ₹135.37 lakh in the same quarter last year.

The tax expense for the quarter amounted to ₹42.34 lakh, comprising current tax of ₹38.71 lakh and deferred tax of ₹3.63 lakh. Consequently, profit for the period from continuing operations settled at ₹111.46 lakh. Earnings per equity share (basic and diluted) improved to ₹1.70 for the quarter, compared to ₹1.41 in the corresponding period of the previous year. The paid-up equity share capital remained unchanged at ₹655.82 lakh.

Financial Performance Summary

Particulars	Quarter Ended 30 Jun'26 (Unaudited)	Quarter Ended 30 Jun'25 (Unaudited)	Change (%)
Revenue from Operations
Interest Income	207.95	154.56	+34.5%
Other Revenue	6.48	7.50	-13.6%
Total Revenue	214.43	204.76	+4.7%
Total Income	242.96	208.91	+16.3%
Total Expenses	89.16	73.55	+21.2%
Profit Before Tax	153.80	135.37	+13.6%
Net Profit	111.46	92.40	+20.6%
Earnings Per Share (Basic)	1.70	1.41	+20.6%

In its notes to the financial results, the company stated that it is primarily engaged in the business of financing and, as such, has no separate reportable segments as per Ind AS 108. The provision for expected credit loss on loan assets has been created in accordance with Ind AS 109. The financial results are available on the company’s website and the BSE Ltd. website.

Historical Stock Returns for Nalin Lease Finance

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.04%	+6.14%	+1.71%	-13.51%	-23.30%	+59.69%

What factors contributed to the significant 34.5% surge in interest income, and is this growth sustainable?

How will the substantial rise in finance costs impact the company's net profit margins in the coming quarters?

What strategies is the company employing to reverse the decline in other revenue from operations?

Financial Performance: Quarter and Year Ended March 31, 2026

The company's financial results reflect movements across income and expense lines for both the quarter ended March 31, 2026, and the full year ended March 31, 2026. The following table presents the key financial metrics (all figures in ₹ Lakhs):

Metric:	Q4 FY26 (Audited)	Q3 FY26 (Unaudited)	Q4 FY25 (Audited)	FY26 (Audited)	FY25 (Audited)
Interest Income:	169.42	172.32	154.04	648.33	590.05
Other Revenue from Operations:	9.73	8.34	19.00	34.37	48.52
Net Gain/(Loss) on Fair Value Changes:	(81.85)	8.44	(51.03)	(13.87)	3.72
Total Revenue from Operations:	97.30	189.09	122.01	668.83	642.28
Other Income:	74.60	3.79	6.22	87.70	87.22
Total Income:	171.90	192.89	128.24	756.53	729.50
Finance Cost:	19.85	17.82	5.57	53.15	40.89
Impairment on Financial Instruments:	22.71	10.11	11.10	50.45	29.11
Employee Benefits Expenses:	27.27	30.47	25.44	109.79	101.46
Depreciation, Amortization & Impairment:	5.45	5.36	3.97	17.21	15.92
Other Expenses:	29.19	25.76	26.73	112.34	99.44
Total Expenses:	104.47	89.51	72.82	342.94	286.82
Profit Before Tax:	67.43	103.37	55.42	413.59	442.69
Current Tax:	12.78	26.01	4.11	99.90	101.57
Taxes of Earlier Periods:	0.72	—	6.01	0.72	6.01
Deferred Tax:	(20.42)	2.32	(12.19)	(4.95)	(17.23)
Net Profit for the Period:	74.35	75.04	57.49	317.91	352.34
Total Comprehensive Income:	74.35	75.04	57.49	317.91	352.34
Basic EPS (₹):	1.13	1.14	0.88	4.85	5.37
Diluted EPS (₹):	1.13	1.14	0.88	4.85	5.37
Paid-up Equity Share Capital:	655.82	655.82	655.82	655.82	655.82

For the full year ended March 31, 2026, total income increased to ₹756.53 lakhs from ₹729.50 lakhs in the previous year. However, net profit for the year declined to ₹317.91 lakhs from ₹352.34 lakhs in FY25, reflecting higher total expenses of ₹342.94 lakhs compared to ₹286.82 lakhs in the prior year. Profit before tax for the year stood at ₹413.59 lakhs versus ₹442.69 lakhs in FY25. Basic and diluted earnings per share for FY26 were ₹4.85 each, compared to ₹5.37 each in FY25.

Balance Sheet Highlights as at March 31, 2026

The company's standalone balance sheet as at March 31, 2026, reflects significant growth in total assets. The following table summarizes key balance sheet items (all figures in ₹ Lakhs):

Particulars:	March 31, 2026 (Audited)	March 31, 2025 (Audited)
Cash and Cash Equivalents:	5.09	1.87
Bank Balances (Other):	77.98	72.52
Investments:	199.58	463.62
Loans:	4,359.38	2,972.14
Other Financial Assets:	42.81	10.97
Total Financial Assets:	4,684.84	3,521.12
Total Non-Financial Assets:	282.50	243.81
Total Assets:	4,967.35	3,764.93
Borrowings (Other than Debt Securities):	1,029.27	112.73
Total Financial Liabilities:	1,043.56	156.15
Total Non-Financial Liabilities:	100.20	103.10
Equity Share Capital:	655.82	655.82
Other Equity:	3,167.77	2,849.86
Total Equity:	3,823.59	3,505.68
Total Liabilities and Equity:	4,967.35	3,764.93

Total assets grew to ₹4,967.35 lakhs as at March 31, 2026, from ₹3,764.93 lakhs as at March 31, 2025. The loan book expanded notably to ₹4,359.38 lakhs from ₹2,972.14 lakhs. Borrowings (other than debt securities) increased substantially to ₹1,029.27 lakhs from ₹112.73 lakhs. Total equity stood at ₹3,823.59 lakhs, up from ₹3,505.68 lakhs in the prior year.

Cash Flow Summary for the Year Ended March 31, 2026

The cash flow statement for the year ended March 31, 2026, highlights the following key movements (all figures in ₹ Lakhs):

Cash Flow Activity:	FY26 (Audited)	FY25 (Audited)
Net Cash Flow from Operating Activities:	(1,119.82)	(304.44)
Net Cash Flow from Investing Activities:	236.94	559.84
Net Cash Flow from Financing Activities:	886.09	(283.90)
Net Increase/(Decrease) in Cash & Equivalents:	3.22	(28.50)
Cash & Equivalents – Opening:	1.87	30.37
Cash & Equivalents – Closing:	5.09	1.87

Net cash used in operating activities widened to ₹(1,119.82) lakhs in FY26 from ₹(304.44) lakhs in FY25, primarily driven by a significant increase in loans disbursed. Financing activities generated a net inflow of ₹886.09 lakhs, supported by proceeds from borrowings of ₹916.55 lakhs. Cash and cash equivalents at the end of the year stood at ₹5.09 lakhs, compared to ₹1.87 lakhs at the beginning of the year.

Auditor and Key Managerial Appointments

At the same Board meeting, the following appointments were approved for FY2026-27:

Appointment:	Details:
Internal Auditors:	M/s. Ajaykumar J. Shah & Co., Chartered Accountants, Ahmedabad
Tax Auditors:	M/s. Paresh Thothawala & Co., Chartered Accountants, Ahmedabad
Effective Date:	May 4, 2026

M/s. Ajaykumar J. Shah & Co. was founded in Ahmedabad, Gujarat, by Ajaykumar J. Shah, and has been providing professional services guided by the values of integrity, independence, innovation, and excellence. M/s. Paresh Thothawala & Co. was founded in 1994 by Mr. Paresh Thothawala and offers a wide range of services including statutory audits, tax audits, internal audits, GST audits, and management consulting and advisory services.

The financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) prescribed under Section 133 of the Companies Act, 2013, and in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company is engaged primarily in the business of financing and accordingly there is no separate reportable segment as per Ind AS-108 dealing with Operating Segments.

Historical Stock Returns for Nalin Lease Finance

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.04%	+6.14%	+1.71%	-13.51%	-23.30%	+59.69%

How will Nalin Lease Finance manage the nearly 9x surge in borrowings to ₹1,029 lakhs, and what is its strategy to maintain a healthy debt-to-equity ratio as the loan book continues to expand?

Given the widening operating cash outflow of ₹1,119.82 lakhs driven by aggressive loan disbursements, how sustainable is this growth trajectory without additional equity capital raises in FY27?

With net profit declining 9.8% year-on-year despite revenue growth, what specific cost-control measures is management considering to reverse the trend of rising impairment charges and operating expenses?