Arco Leasing Reports Widened Q3 FY26 Loss of ₹53.16 Lakhs Amid Higher Expenses
Arco Leasing Limited reported a standalone net loss of ₹53.16 lakhs for Q3 FY26, significantly higher than the ₹4.62 lakhs loss in Q3 FY25. Nine-month standalone losses expanded to ₹54.93 lakhs from ₹6.17 lakhs year-over-year. The deterioration was primarily driven by surge in other expenses to ₹52.81 lakhs. Consolidated results showed relatively better performance with Q3 FY26 loss of ₹49.34 lakhs.
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Arco Leasing Limited has reported significantly widened losses for the third quarter ended December 31, 2025, with standalone net loss expanding to ₹53.16 lakhs compared to ₹4.62 lakhs in the corresponding quarter of the previous year. The company's financial performance deteriorated across both quarterly and nine-month periods, reflecting operational challenges during FY26.
Financial Performance Overview
The company's standalone financial results show a marked decline in profitability metrics across all reporting periods:
| Metric | Q3 FY26 | Q3 FY25 | Change |
|---|---|---|---|
| Total Income | ₹0.30 lakhs | ₹0.31 lakhs | -3.2% |
| Total Expenditure | ₹53.46 lakhs | ₹4.92 lakhs | +987% |
| Net Loss | ₹53.16 lakhs | ₹4.62 lakhs | +1051% |
| EPS (Basic) | ₹(22.14) | ₹(1.92) | - |
Nine-Month Performance Analysis
The nine-month period ended December 31, 2025 showed similar deterioration in financial metrics. Standalone net losses widened substantially to ₹54.93 lakhs from ₹6.17 lakhs in the corresponding nine-month period of FY25. Total income for the nine-month period increased to ₹7.90 lakhs from ₹1.02 lakhs, primarily due to income from operations of ₹7.00 lakhs recorded during the period.
Consolidated Results
On a consolidated basis, which includes subsidiary Ansu Trade & Fiscals Private Limited, the company reported better performance compared to standalone results:
| Period | Consolidated Net Profit/(Loss) | Standalone Net Profit/(Loss) |
|---|---|---|
| Q3 FY26 | ₹(49.34) lakhs | ₹(53.16) lakhs |
| Q3 FY25 | ₹1.68 lakhs | ₹(4.62) lakhs |
| Nine months FY26 | ₹(43.51) lakhs | ₹(54.93) lakhs |
| Nine months FY25 | ₹5.68 lakhs | ₹(6.17) lakhs |
Expense Structure
The primary driver of increased losses was a significant surge in other expenses, which jumped to ₹52.81 lakhs in Q3 FY26 from ₹4.92 lakhs in Q3 FY25. The company also recorded employee benefits expense of ₹0.65 lakhs during Q3 FY26, which was not present in the corresponding quarter of the previous year.
Corporate Governance
The unaudited financial results were reviewed by the audit committee and approved by the board of directors at their meeting held on February 2, 2026. The meeting commenced at 4:30 PM and concluded at 5:45 PM. Independent auditor M.C. Jain & Co. provided limited review reports for both standalone and consolidated financial results, confirming compliance with regulatory requirements under SEBI LODR Regulations.
The company maintains a paid-up equity share capital of ₹24.01 lakhs with a face value of ₹10 per share, which remained unchanged across all reporting periods. Trading window for company securities will open 48 hours after the results announcement, in compliance with insider trading regulations.
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