Upsurge Investment & Finance reported a standalone net profit of ₹16.06 crore for the quarter ended June 30, 2026, marking a 109% year-on-year increase from ₹7.68 crore in Q1FY26. The surge was primarily driven by a reversal in fair value adjustments and robust sales of shares and securities. On August 10, 2026, the Board of Directors approved these unaudited financial results and declared an interim dividend of ₹0.50 per equity share for the financial year 2026-27. The record date for determining shareholder entitlement is fixed for Friday, August 21, 2026.

Total revenue from operations climbed to ₹34.40 crore, up from ₹24.22 crore in Q4FY26 and ₹22.49 crore in Q1FY26. This growth reflects strong performance in investment activities, with net gain on fair value changes standing at ₹94.26 crore, a stark contrast to the loss of ₹33.56 crore reported in the previous quarter. Proceeds from the sale of shares and securities contributed ₹18.79 crore to revenue. Interest income remained stable at ₹10.35 crore, while dividend income saw a modest rise to ₹3.16 lakh compared to ₹10.09 lakh in the prior quarter.

Financial Performance Highlights

Total expenses for the quarter were ₹13.85 crore, slightly higher than the ₹10.43 crore incurred in Q4FY26 but comparable to the ₹13.27 crore in Q1FY26. Finance costs decreased significantly to ₹3.28 lakh from ₹24.50 lakh in the previous quarter. Employee benefit expenses remained steady at ₹19.33 lakh. The tax expense for the period was ₹44.99 lakh, contributing to the final net profit figure.

What the Numbers Show

The dramatic swing from a quarterly loss of ₹6.23 crore in Q4FY26 to a significant profit highlights the volatility inherent in Upsurge Investment’s business model, which is heavily reliant on market-linked fair value changes and capital gains from securities sales. While interest income provides a stable base, the majority of the revenue growth in Q1FY27 stems from non-operational trading activities rather than core lending operations. Investors should note that such gains may not be sustainable at similar levels in subsequent quarters if market conditions shift.

Dividend Declaration and Corporate Governance

In accordance with Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the interim dividend represents a 5% return on the face value of ₹10 per share. The unaudited financial results have been reviewed by the Audit Committee and approved by the Board, with a limited review report issued by independent auditors Jain & Trivedi Chartered Accountants. The results comply with Ind AS standards prescribed under Section 133 of the Companies Act, 2013.

Upsurge Investment & Finance reported an 80% decline in annual net profit to ₹322.77 lakh for the financial year ended March 31, 2026, down from ₹1,595.35 lakh in the prior year. The steep fall in profitability was primarily driven by a substantial reduction in revenue from the sale of shares and securities. For the quarter ended March 31, 2026, the company posted a net loss of ₹623.38 lakh, a sharp reversal from the profit of ₹30.78 lakh recorded in the corresponding period of the previous year.

The board of directors approved the audited standalone financial results at its meeting held on May 26, 2026. The statutory auditors, Jain & Trivedi, expressed an unmodified opinion on the results. The company confirmed that there was no deviation or variation in the use of proceeds raised through a preferential issue of warrants convertible into equity shares, which amounted to ₹10,12,87,500 and was raised on February 23, 2026. The company published a newspaper advertisement regarding these results in Business Standard and Mumbai Mitra on May 27, 2026, pursuant to Regulation 47 of the SEBI (LODR) Regulations, 2015.

Financial Performance

Total revenue from operations for the quarter stood at ₹242.23 lakh, significantly lower than the ₹3,658.87 lakh reported in the same quarter of the previous year. On an annual basis, total revenue from operations decreased to ₹5,354.75 lakh in FY26 from ₹11,316.63 lakh in FY25. The company’s main business is NBFC activity, and it reported no separate reportable segments in accordance with Ind AS 108.

Key Financial Metrics

The following table outlines the financial performance for the quarter and year ended March 31, 2026:

Balance Sheet Highlights

As of March 31, 2026, the company’s total assets stood at ₹12,284.74 lakh, an increase from ₹10,733.74 lakh in the previous year. Cash and cash equivalents improved significantly to ₹584.22 lakh from ₹4.54 lakh, while borrowings rose to ₹460.84 lakh from ₹19.05 lakh. Equity share capital increased to ₹2,192.14 lakh from ₹2,007.14 lakh, reflecting the issuance of shares during the year.

The audited financial results have been prepared in accordance with Indian Accounting Standards (Ind AS) and are available on the company’s website.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE890B01014/3530c17e-b483-46f7-9ef8-514d52b792ac.pdf