ARC Finance Limited Reports 76% Revenue Decline in Q3FY26 Results
ARC Finance Limited reported challenging Q3FY26 results with total revenue declining 76% year-on-year to ₹158.01 lakhs from ₹667.33 lakhs. The company shifted to a net loss of ₹0.91 lakhs from a profit of ₹33.98 lakhs in Q3FY25. While interest income grew 16% to ₹54.35 lakhs, share sale revenues plummeted 83% to ₹103.60 lakhs. For nine months, revenue increased 14.3% but net profit fell 96.4% to ₹24.67 lakhs.
*this image is generated using AI for illustrative purposes only.
ARC Finance Limited announced its unaudited financial results for the quarter ended December 31, 2025, revealing a challenging performance with significant revenue decline and shift to losses. The Kolkata-based finance company's board approved these results during a meeting held on February 10, 2026.
Financial Performance Overview
The company's financial metrics for Q3FY26 demonstrate substantial year-on-year contraction across key parameters:
| Metric | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Total Revenue | ₹158.01 lakhs | ₹667.33 lakhs | -76.3% |
| Interest Income | ₹54.35 lakhs | ₹46.86 lakhs | +16.0% |
| Sale of Shares | ₹103.60 lakhs | ₹620.47 lakhs | -83.3% |
| Net Profit/(Loss) | ₹(0.91) lakhs | ₹33.98 lakhs | Loss |
| Total Expenses | ₹156.49 lakhs | ₹532.86 lakhs | -70.6% |
Revenue Composition and Analysis
ARC Finance's revenue structure shows heavy dependence on share trading activities. While interest income, the company's core finance business revenue, showed positive growth of 16% to ₹54.35 lakhs, this was overshadowed by the dramatic 83% decline in share sale revenues to ₹103.60 lakhs from ₹620.47 lakhs in Q3FY25.
The company also recorded dividend income of ₹0.06 lakhs during the quarter, compared to nil in the previous year quarter. Total revenue from operations fell to ₹158.01 lakhs from ₹667.33 lakhs, representing a 76% year-on-year decline.
Expense Management and Profitability
Despite the revenue challenges, ARC Finance managed to reduce its total expenses by 70.6% to ₹156.49 lakhs from ₹532.86 lakhs in Q3FY25. Key expense components included:
- Purchases of Stock-in-Trade: ₹177.90 lakhs (Q3FY25: ₹700.66 lakhs)
- Employee Benefits: ₹5.09 lakhs (Q3FY25: ₹4.89 lakhs)
- Finance Costs: ₹0.58 lakhs (Q3FY25: ₹23.80 lakhs)
- Depreciation: ₹5.31 lakhs (Q3FY25: ₹4.91 lakhs)
The company benefited from a positive change in inventories of ₹46.09 lakhs, compared to a negative change of ₹208.87 lakhs in the previous year.
Nine-Month Performance
For the nine months ended December 31, 2025, ARC Finance showed mixed results:
| Parameter | 9M FY26 | 9M FY25 | Change (%) |
|---|---|---|---|
| Total Revenue | ₹2,244.47 lakhs | ₹1,964.17 lakhs | +14.3% |
| Interest Income | ₹188.65 lakhs | ₹180.98 lakhs | +4.2% |
| Net Profit | ₹24.67 lakhs | ₹677.69 lakhs | -96.4% |
| Basic EPS | ₹0.003 | ₹0.078 | -96.2% |
Tax and Earnings Per Share
The company paid current tax of ₹2.43 lakhs during Q3FY26 compared to ₹11.94 lakhs in Q3FY25. Basic earnings per share for continuing operations stood at ₹(0.000) compared to ₹0.004 in the previous year quarter. The company maintains a paid-up equity share capital of 871,509,623 shares with a face value of ₹1.00 each.
Regulatory Compliance
The results were reviewed by the audit committee and approved by the board of directors. The statutory auditors, S S R V & Associates, conducted a limited review and reported no material misstatements in the financial results prepared in accordance with Indian Accounting Standards.
Historical Stock Returns for ARC Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.64% | -9.09% | +1.69% | -31.03% | -52.76% | +81.82% |
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