Oswal Leasing Q1 Results: Net loss narrows to ₹1.07 lakh, auditors change
Oswal Leasing Limited reported a Q1FY27 net loss of ₹1.07 lakh, improving from ₹0.71 lakh in Q1FY26, driven by reduced other expenses despite lower interest income. The Board accepted the resignation of statutory auditors V.V. Bhalla & Co. due to resource constraints and appointed K R Aggarwal & Associates as the interim statutory auditor. Additionally, independent directors Dr. Roshan Lal Behl and Dr. Manisha Gupta were re-appointed for five-year terms.
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Oswal Leasing Limited reported a standalone net loss of ₹1.07 lakh for the quarter ended June 30, 2026 (Q1FY27), a slight improvement from the ₹0.71 lakh loss posted in the corresponding quarter of FY26. The Board of Directors approved these unaudited financial results on August 10, 2026, alongside significant changes to its statutory audit firm and independent director composition. The narrowed loss reflects a decline in total expenses to ₹4.37 lakh from ₹4.34 lakh in Q1FY26, despite a drop in interest income to ₹3.29 lakh from ₹3.63 lakh.
The Board also transacted business related to the resignation of M/s V.V. Bhalla & Co., Chartered Accountants (FRN: 002928N), the company’s statutory auditors. The firm tendered its resignation effective August 10, 2026, after issuing the limited review report for Q1FY27, citing pre-occupation with other professional assignments and an inability to allocate required resources. Pursuant to Section 139 of the Companies Act, 2013, and recommendations from the Audit Committee, the Board accepted the resignation and appointed M/s K R Aggarwal & Associates, Chartered Accountants (FRN: 030088N) as the new statutory auditors. The new firm will hold office until the conclusion of the 42nd Annual General Meeting (AGM), with shareholder approval sought for a five-year term thereafter.
Financial Performance Highlights
Total income from operations declined to ₹3.29 lakh in Q1FY27, down from ₹3.35 lakh in Q4FY26 and ₹3.63 lakh in Q1FY26. Interest income, the primary revenue driver, fell to ₹3.29 lakh from ₹3.63 lakh in the prior year. Total expenses decreased to ₹4.37 lakh from ₹5.10 lakh in the preceding quarter, driven by lower other expenses which dropped to ₹1.22 lakh from ₹2.38 lakh. However, employee benefit expenses rose to ₹3.15 lakh from ₹2.72 lakh.
| Particulars | Q1FY27 (₹ Lakh) | Q4FY26 (₹ Lakh) | Q1FY26 (₹ Lakh) | FY26 (₹ Lakh) | FY25 (₹ Lakh) |
|---|---|---|---|---|---|
| Interest Income | 3.29 | 3.26 | 3.63 | 13.99 | 15.09 |
| Other Income | - | 0.09 | - | 0.09 | - |
| Total Income | 3.29 | 3.35 | 3.63 | 14.08 | 15.09 |
| Employee Benefits | 3.15 | 2.72 | 2.71 | 10.66 | 9.10 |
| Other Expenses | 1.22 | 2.38 | 1.62 | 8.63 | 8.15 |
| Total Expenses | 4.37 | 5.10 | 4.34 | 19.29 | 17.25 |
| Profit Before Tax | (1.07) | (1.75) | (0.71) | (5.21) | (2.16) |
For the full financial year ended March 31, 2026 (FY26), Oswal Leasing reported a net loss of ₹5.21 lakh, widening from the ₹2.16 lakh loss in FY25. Total income for FY26 stood at ₹14.08 lakh, down from ₹15.09 lakh in FY25. Basic and diluted earnings per share (EPS) were negative ₹0.21 in Q1FY27, compared to negative ₹0.14 in Q1FY26.
Governance Changes
In addition to the auditor change, the Board re-appointed two independent directors for a second term of five years, effective August 12, 2026, subject to shareholder approval at the ensuing AGM. Dr. Roshan Lal Behl (DIN: 06443747) and Dr. Manisha Gupta (DIN: 06910242) were re-appointed based on the recommendation of the Nomination and Remuneration Committee. Both directors are not liable to retire by rotation during their new terms.
The 42nd Annual General Meeting is scheduled for September 28, 2026, at 02:30 P.M., to be conducted through Video Conferencing or Other Audio Visual Means (OAVM). The financial results were reviewed by the Audit Committee and taken on record by the Board on August 10, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
How might the transition from M/s V.V. Bhalla & Co. to M/s K R Aggarwal & Associates impact the rigor and timeline of future financial audits for Oswal Leasing?
Given the rising employee benefit expenses despite falling interest income, what strategic cost-control measures is management implementing to reverse the net loss trend in upcoming quarters?
Will the re-appointment of independent directors Dr. Roshan Lal Behl and Dr. Manisha Gupta bring new strategic initiatives to address the company's declining operational income?
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