Prism Finance Limited has filed an appeal before the Income Tax Appellate Tribunal (ITAT) in Ahmedabad against orders from the National Faceless Appeal Centre (NFAC) that upheld significant tax additions for two past assessment years.

The company is challenging the NFAC’s dismissal of its earlier appeals against reassessment orders under section 147 of the Income Tax Act, 1961. The NFAC orders, dated June 19, 2026, and July 1, 2026, confirmed additions totaling approximately ₹5.16 crore across the two periods.

Litigation Details

The company disclosed the filing pursuant to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The appeals target specific additions made by the Income Tax Officer, Ward-3(1)(1), Ahmedabad, which were subsequently upheld by the NFAC under section 250 of the Act.

For AY 2016-17, the NFAC upheld an addition of ₹76,56,360 under section 68 and ₹1,91,410 under section 69C. For AY 2018-19, the upheld additions were ₹3,09,30,615 under section 68 and ₹7,73,265 under section 69C.

Financial Implications

The tax demand arising from the AY 2016-17 order stands at ₹53,63,710, while the demand for AY 2018-19 is ₹4,62,09,520. Prism Finance is seeking the deletion of these additions through the ITAT.

Regarding potential financial impact, the company stated it does not foresee any significant financial implications at this stage, citing the merits of the matter. The firm indicated it will keep stock exchanges informed of subsequent updates on the litigation.

Prism Finance Limited reported a net profit of ₹19.91 lakh for the quarter ended June 30, 2026, marking a significant improvement from the net loss of ₹2.34 lakh recorded in the corresponding quarter of the previous fiscal year. The Ahmedabad-based non-banking financial company also disclosed that its total income from operations stood at ₹522.64 lakh, compared to nil in the prior year’s quarter.

The Board of Directors approved the unaudited standalone financial results during a meeting held on August 13, 2026. The results were filed in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. A limited review report on the financials is available on the company’s website and the BSE portal.

Financial Performance

The company returned to profitability in the current quarter after reporting losses in both the preceding quarter (Q4FY26) and the same quarter last year (Q1FY26).

Earnings per share (EPS) for the quarter came in at ₹0.45 for both basic and diluted calculations, up from a negative EPS of -₹0.05 in Q1FY26. For the full fiscal year FY26, the company reported a net profit of ₹37.97 lakh on total income of ₹957.85 lakh.

What the Numbers Show

The transition from a net loss of ₹2.34 lakh in Q1FY26 to a net profit of ₹19.91 lakh in Q1FY27 indicates a stabilization in operational performance. With total income rising from nil to ₹522.64 lakh, the company appears to have resumed regular business activities or recognized deferred income that was absent in the prior comparable period. The tax rate effectively reduced the pre-tax profit of ₹25.08 lakh to the post-tax figure of ₹19.91 lakh.

Corporate Updates

In addition to financial results, Prism Finance Limited notified shareholders about a special window for the re-lodgement of transfer requests for physical shares. As per SEBI Circular No. HO/38/13/11(2)2026-MIRSD-POD/I/3750/2026 dated January 30, 2026, investors can apply for the transfer and dematerialisation of physical securities sold or purchased before April 1, 2019. This special window remains open from February 5, 2026, to February 4, 2027, aimed at facilitating rightful access to securities previously rejected due to document deficiencies.