U.Y. Fincorp Limited reported a net profit of ₹1,961.61 lakh for the quarter ended June 30, 2026, a substantial increase of 229% compared to ₹596.75 lakh in the corresponding period of the previous year. The company’s total revenue from operations surged to ₹7,251.03 lakh from ₹2,193.12 lakh year-on-year, driven primarily by a sharp rise in interest income and other operating income. This performance signals a robust recovery in lending activities and operational efficiency for the financial services firm.

The Board of Directors approved the standalone unaudited financial results on August 10, 2026, pursuant to Regulation 30 and Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by the Audit Committee and subjected to a limited review by the statutory auditors, Praveen K Srivastava & Co., in accordance with Standard on Review Engagements (SRE) 2410. The filing also complies with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024.

Financial Performance Highlights

Interest income, a key driver for the company, jumped to ₹5,021.34 lakh from ₹740.55 lakh in the same quarter last year. Other operating income also saw a dramatic increase to ₹1,294.44 lakh from ₹70.70 lakh. Meanwhile, revenue from the sale of shares stood at ₹935.25 lakh, down from ₹1,381.87 lakh in the prior year period. Total expenses rose to ₹4,684.36 lakh from ₹1,419.67 lakh, with 'other expenses' accounting for ₹3,616.07 lakh of the total outgo.

Auditor’s Emphasis of Matter

The statutory auditors highlighted an emphasis of matter regarding the company’s associate, M/s Purple Advertising Services Private Limited. Due to the non-availability of financial results for the associate, which has gone into liquidation, its results have not been consolidated under Ind AS 28. Consequently, the impact of this investment is not ascertainable in the current consolidated view. The company had previously made an impairment provision of ₹900 lakh on this investment in earlier financial years. The auditors noted that their opinion is not modified in respect of this matter.

Strategic Developments

U.Y. Fincorp has received in-principle approval from both BSE Limited and NSE Limited, dated July 15, 2025, for a proposed private placement of equity shares. Under Regulation 28(1) of the SEBI (LODR) Regulations, 2015, the company plans to raise up to ₹50 crore through Qualified Institutional Placements (QIPs). The shares carry a face value of ₹5 each. This capital raise could support further expansion of its lending book and operational scale.

What the Numbers Show

The most striking feature of Q1FY27 results is the disproportionate growth in interest income versus share sales. While revenue from share sales declined, interest income increased nearly seven-fold, suggesting a strategic pivot or successful scaling of core lending operations. The surge in 'other operating income' further supports this trend, indicating diversified revenue streams beyond traditional asset sales. However, the rise in 'other expenses' warrants monitoring, as it constitutes the largest component of the cost structure, potentially impacting margin sustainability if not managed alongside revenue growth.

Uy Fincorp has appointed new internal and statutory auditors to fill casual vacancies caused by the resignation of its previous audit firms. The Board of Directors approved the appointments at a meeting held on July 24, 2026, ensuring continuity in the company’s financial oversight for the upcoming fiscal year.

M/s Seth and Associates, Chartered Accountants (Firm Registration No. 001167C), was appointed as the Internal Auditor with effect from July 24, 2026, for the financial year 2026-27. This appointment replaces M/s R. K. Lodha & Associates, Chartered Accountants (Firm Registration No. 316194E), who resigned from the position.

Simultaneously, the Board appointed M/s Praveen K Srivastava & Co, Chartered Accountants (Firm Registration No. 013251C), as the Statutory Auditor. Their tenure begins on July 24, 2026, and continues until the conclusion of the ensuing Annual General Meeting. This appointment fills the vacancy left by M/s B. Nath & Co., Chartered Accountants (Firm Registration No. 307057E).

Both appointments were made based on the recommendation of the Audit Committee. The company disclosed these changes in compliance with Regulation 30 read with Para A(7) of Part A of Schedule III of the Listing Regulations, SEBI Circular No. SEBI/HO/CFD/CFD-POD-1/P/CIR/2023/123 dated July 13, 2023, and Master Circular No. SEBI/HO/CFD/POD2/CIR/P/0155 dated November 11, 2024.

Auditor Profiles

M/s Seth and Associates was established in 1975 and serves clients across various segments including Paper, Real Estate, Information Technology, FMCG, and Telecom. The firm focuses on strategic inputs beyond core audit and taxation.

M/s Praveen K Srivastava & Co was established in 2005 by CA Praveen Kumar Srivastava. The firm operates from offices in Lucknow, Ghaziabad, Prayagraj, and Raipur, with six partners and more than 25 qualified professionals. It serves government departments, Public Sector Undertakings, corporate entities, MSMEs, trusts, and societies.

Board Meeting Details

The Board meeting commenced at 4:00 P.M. and concluded at 4:30 P.M. on July 24, 2026. Dinesh Burman, Executive Director (DIN: 00612904), authorized the disclosure to the stock exchanges.