Asia Capital Limited , a Non-Banking Financial Company (NBFC), has released its financial results for the second quarter and first half of the fiscal year 2026, ending September 30, 2025. The report reveals a mixed financial picture, with a substantial increase in the loan portfolio but a decline in quarterly profits.

Financial Performance Highlights

Key Balance Sheet Changes

Analysis of Results

Asia Capital Limited experienced a significant decline in its quarterly net profit, which dropped to ₹43,000.00 in Q2 FY2026 from ₹715,000.00 in the previous quarter. This represents a substantial decrease of approximately 94% quarter-over-quarter. The half-yearly figures also show a downward trend, with net profit for H1 FY2026 at ₹816,000.00, compared to ₹1,692,000.00 in the same period last year, marking a year-on-year decline of about 52%.

Despite the profit decline, the company reported a total income of ₹1,097,000.00 for the quarter, with interest income contributing ₹785,000.00, accounting for about 72% of the total revenue.

Loan Portfolio and Balance Sheet Changes

A notable development is the dramatic increase in Asia Capital's loan portfolio, which grew from ₹3.02 crore as of March 31, 2025, to ₹27.15 crore by September 30, 2025. This represents a growth of approximately 799% in six months.

However, this expansion in lending activities appears to have been funded by a significant reduction in cash and bank balances, which decreased from ₹63.78 crore to ₹24.66 crore over the same period. The company has also completely eliminated its borrowings, which stood at ₹15.07 crore at the end of the previous fiscal year.

Conclusion

While Asia Capital Limited has shown significant growth in its loan portfolio, the sharp decline in profits raises questions about the company's short-term profitability and operational efficiency. The significant reduction in cash reserves and the elimination of borrowings suggest a shift in the company's financial structure and lending operations.

Investors and stakeholders may need to closely monitor how this expansion in the loan book translates into profitability in the coming quarters, and whether the company can maintain this growth trajectory without compromising its financial stability.

Asia Capital Limited , a BSE-listed Non-Banking Financial Company (NBFC), has announced significant changes to its board of directors and released its financial results for the first quarter of the fiscal year 2025-2026.

Board Appointments

The company has appointed two new additional directors effective August 01, 2025:

1. Mr. Devendrasingh Ramola: Appointed as Additional Director (Non-Executive), Mr. Ramola brings over 31 years of experience in the NBFC sector. He is the Co-Founder of SKC Investment Advisors Pvt Ltd and Asia Capital Limited, specializing in financial advisory, loan syndication, and sustainable investments.

2. Mrs. Sangeeta Sudhir Kumar Trivedi: Appointed as Additional Director (Executive), Mrs. Trivedi is an artist by profession with a Bachelor of Arts degree from Jiwaji University, Gwalior.

Q1 FY2026 Financial Highlights

For the quarter ended June 30, 2025, Asia Capital Limited reported the following financial results:

The company's total income decreased by 61.12% year-over-year, while total expenses increased by 75.53%. Consequently, the net profit after tax saw a significant decline of 90.23% compared to the same quarter last year.

Balance Sheet Overview

As of June 30, 2025:

• Total Assets: ₹51,711.51 thousand
• Total Equity: ₹51,507.99 thousand
• Total Liabilities: ₹203.52 thousand

The company's balance sheet shows a strong equity position, with total equity accounting for 99.61% of total assets.

Cash Flow and Liquidity

Asia Capital Limited reported a significant decrease in cash and cash equivalents:

• Cash and cash equivalents at the beginning of the quarter: ₹63,780.73 thousand
• Cash and cash equivalents at the end of the quarter: ₹26,272.43 thousand

This reduction was primarily due to changes in working capital and a decrease in borrowings.

Other Corporate Actions

The company also announced several other corporate actions:

1. The 41st Annual General Meeting is scheduled for August 25, 2025.
2. The Board has approved borrowings exceeding the aggregate of the paid-up capital and free reserves of the company.
3. M/s. Saloni Goyal & Associates has been appointed as the Secretarial Auditor for a term of five years.
4. M/s. Shankarlal Jain & Associates LLP has been re-appointed as Statutory Auditors for a term of five consecutive years.

These developments indicate that Asia Capital Limited is undergoing significant changes in its governance structure while navigating through a challenging financial quarter. The appointment of experienced directors may help the company in strategizing for future growth and addressing the current financial performance issues.