News Earnings Aar Shyam India Investment Company Reports Q3 FY26 Loss as RBI Cancels NBFC RegistrationAar Shyam India Investment Company Reports Q3 FY26 Loss as RBI Cancels NBFC Registration
Aar Shyam India Investment Company Limited reported a net loss of ₹5.42 lakhs for Q3 FY26 against a profit of ₹0.40 lakhs in Q3 FY25, with revenue declining 84.27% to ₹1.14 lakhs. For nine months FY26, the company recorded a substantial loss of ₹79.74 lakhs compared to ₹1.79 lakhs loss in the previous year. The Reserve Bank of India approved cancellation of the company's NBFC Certificate of Registration on January 23, 2026, following voluntary exit from NBFC operations effective May 15, 2025. The company plans to transition to food manufacturing and engineering consultation services.
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Aar Shyam India Investment Company Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant operational challenges and a major regulatory development. The company reported a net loss of ₹5.42 lakhs for the third quarter of FY26, marking a sharp reversal from the profit of ₹0.40 lakhs recorded in the corresponding quarter of the previous year.
Financial Performance Overview
The company's financial performance showed considerable deterioration across key metrics during the reporting period:
| Metric | Q3 FY26 | Q3 FY25 | Nine Months FY26 | Nine Months FY25 |
|---|---|---|---|---|
| Revenue from Operations | ₹1.14 lakhs | ₹7.25 lakhs | ₹6.59 lakhs | ₹21.36 lakhs |
| Total Expenses | ₹6.56 lakhs | ₹6.85 lakhs | ₹86.33 lakhs | ₹23.15 lakhs |
| Net Profit/(Loss) | (₹5.42 lakhs) | ₹0.40 lakhs | (₹79.74 lakhs) | (₹1.79 lakhs) |
| Earnings Per Share | (₹0.18) | ₹0.01 | (₹2.66) | (₹0.06) |
Revenue from operations declined dramatically to ₹1.14 lakhs in Q3 FY26 from ₹7.25 lakhs in Q3 FY25, representing an 84.27% decrease. The revenue primarily comprised interest income of ₹1.14 lakhs, compared to ₹7.19 lakhs in the previous year quarter.
Expense Analysis
Total expenses for the quarter stood at ₹6.56 lakhs, marginally lower than ₹6.85 lakhs in the corresponding quarter last year. However, the nine-month expense figure surged to ₹86.33 lakhs from ₹23.15 lakhs in the previous year, primarily driven by other expenses which increased substantially to ₹77.39 lakhs.
| Expense Category | Q3 FY26 | Q3 FY25 | Nine Months FY26 | Nine Months FY25 |
|---|---|---|---|---|
| Employee Cost | ₹2.61 lakhs | ₹2.94 lakhs | ₹8.76 lakhs | ₹9.83 lakhs |
| Interest & Finance Charges | ₹0.02 lakhs | ₹0.02 lakhs | ₹0.06 lakhs | ₹0.06 lakhs |
| Depreciation | ₹0.04 lakhs | ₹0.01 lakhs | ₹0.11 lakhs | ₹0.04 lakhs |
| Other Expenses | ₹3.89 lakhs | ₹3.87 lakhs | ₹77.39 lakhs | ₹13.21 lakhs |
RBI Registration Cancellation
A significant development during the period was the Reserve Bank of India's approval for cancellation of the company's Certificate of Registration as a Non-Banking Financial Company. The RBI approved the application for cancellation under Section 45-IA of the Reserve Bank of India Act, 1934, with the approval dated January 23, 2026.
| Registration Details | Information |
|---|---|
| Original CoR Number | B-14.03138 |
| Original Issue Date | February 20, 2008 |
| Cancellation Approval Date | January 23, 2026 |
| NBFC Operations Ceased | May 15, 2025 |
The company voluntarily requested the cancellation following its decision to cease NBFC operations effective May 15, 2025. As per the RBI order, the company is not eligible to submit a fresh application for CoR as an NBFC for a period of three years from the date of cancellation.
Capital Structure and Reserves
The company maintained its paid-up equity share capital at ₹300.00 lakhs with a face value of ₹10 per share throughout the reporting periods. Reserves excluding revaluation reserves stood at ₹55.53 lakhs as of December 31, 2025, compared to ₹70.64 lakhs in the previous year.
Regulatory Compliance and Future Operations
The Board of Directors approved the unaudited financial results in their meeting held on January 27, 2026. The statutory auditors issued a limited review report confirming compliance with Indian Accounting Standards and listing regulations. Post-exit from NBFI activities, the company has indicated plans to engage in food manufacturing, agricultural product processing, and engineering consultation services, requiring amendments to its Memorandum of Association and name change applications with the Registrar of Companies.
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