NCL Research & Financial Services received in-principle approval from the Bombay Stock Exchange (BSE) for its proposed rights issue of fully paid-up equity shares. The exchange granted the permission on August 14, 2026, allowing the company to use the exchange’s name in its Letter of Offer, provided it includes the mandatory disclaimer clauses.

The approval follows the company’s application dated February 24, 2026. The BSE clarified that this permission is for limited internal purposes regarding listing eligibility and does not warrant the correctness of the offer document or the financial soundness of the company. Investors are advised to conduct independent inquiry before subscribing.

Key Compliance Requirements

The company must adhere to several statutory and regulatory conditions before finalizing the offer documents. Key requirements include:

• Fixing a record date with at least three working days’ advance notice to the exchange.
• Disclosing the rights issue price at least three working days prior to the record date.
• Ensuring dematerialization agreements are in place with all depositories.
• Obtaining Designated Stock Exchange approval for the Basis of Allotment, even in cases of under-subscription.
• Appointing a qualified Company Secretary as the Compliance Officer under Regulation 6(1) of SEBI (LODR) Regulations, 2015.
• Procuring an ODI compliance certificate from a Secretarial Auditor before filing the listing application.

The company remains solely responsible for disclosures in the offer document and any consequences arising from non-disclosure or misstatement. Dealings in Letters of Renunciation will be permitted only after the posting of the letter of offer and composite application form is completed.

NCL Research & Financial Services reported a net profit of ₹112.91 lakh for the first quarter ended June 30, 2026 (Q1FY27), marking a sharp recovery from the ₹559.32 lakh loss recorded in the preceding quarter. The Mumbai-based financial services firm saw its total income rise to ₹222.07 lakh, driven by robust interest income and gains from derivatives trading. The Board of Directors, led by Managing Director Goutam Bose, approved the unaudited standalone financial results on August 11, 2026, in compliance with Regulation 33(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company’s operational performance was bolstered by interest income, which surged to ₹166.06 lakh from ₹28.04 lakh in the prior quarter. This increase contributed to total revenue from operations reaching ₹166.62 lakh, compared to ₹28.40 lakh in the preceding three months. Additionally, the firm recorded other income of ₹55.45 lakh, primarily driven by a ₹52.65 lakh profit from futures and options (F&O) trading, contrasting with a ₹54.63 lakh loss in the same segment during the previous quarter.

Financial Performance Overview

The following table highlights the key financial metrics for Q1FY27 compared to the preceding and corresponding periods:

Expenses for the quarter totaled ₹73.44 lakh, a substantial decrease from the ₹660.28 lakh incurred in the preceding quarter. This reduction was largely due to the absence of significant bad debt write-offs and lower expected credit losses (ECL). In Q1FY27, ECL provision stood at ₹37.29 lakh, whereas the prior quarter saw a massive ₹398.74 lakh provision alongside ₹134.59 lakh in bad debts written off. Employee benefit expenses were ₹16.95 lakh, and other operating expenses amounted to ₹22.44 lakh.

Auditor’s Emphasis of Matter

Maheshwari & Co., the statutory auditors, issued a limited review report with an emphasis of matter regarding interest income recognition. The auditors noted that interest income has not been recognized on certain outstanding loans and advances because it could not be crystallized with respective parties. Management attributed this to ongoing financial and commercial stress with these parties, stating that the interest receivable could not be determined with reasonable certainty.

Despite the non-recognition of interest, management expects to recover the principal amounts in due course. Consequently, the company recognized an Expected Credit Loss (ECL) provision for these credit-impaired assets in accordance with its accounting policy. The auditors relied on management representations regarding the nature and recoverability of these loans, as sufficient supporting details and confirmations from the parties were unavailable. The audit opinion remains unmodified.

What the Numbers Show

The sharp recovery in profitability is driven by a normalization of credit costs rather than a surge in core lending volumes alone. While interest income rose significantly, the most impactful factor was the drastic reduction in impairment charges. The absence of large-scale bad debt write-offs and lower ECL provisions compared to the preceding quarter allowed the bottom line to turn positive. Investors should monitor the recoverability of the stressed loans highlighted in the auditor’s emphasis of matter, as future provisions could impact margins if recovery expectations are not met.