Asia Capital Limited has released its unaudited financial results for the quarter and nine months ended December 31, 2025, showing mixed performance compared to the previous year periods. The Mumbai-based financial services company reported steady profitability despite facing some operational challenges during the reporting period.

Financial Performance Overview

The company's financial performance for Q3 FY26 and nine-month period presents the following key metrics:

Revenue Composition and Analysis

Asia Capital's revenue structure remained consistent with its core business model, primarily driven by interest income from its lending operations. For Q3 FY26, interest income constituted ₹868.47 thousand of the total income of ₹1,217.37 thousand. Other income contributed ₹348.90 thousand during the quarter, showing significant improvement from ₹55.91 thousand in the corresponding quarter of the previous year.

The nine-month period showed total income of ₹3,040.78 thousand, comprising interest income of ₹1,830.59 thousand and other income of ₹1,210.20 thousand. This represents a decline from the previous year's nine-month total income of ₹4,397.93 thousand.

Expense Management and Profitability

The company maintained disciplined expense management during the reporting period:

Balance Sheet Position

As of December 31, 2025, Asia Capital's balance sheet showed total assets of ₹52,752.30 thousand, compared to ₹66,906.60 thousand as of March 31, 2025. The significant components of the asset base include:

Cash Flow Analysis

The company's cash flow statement for Q3 FY26 revealed significant working capital movements. Net cash used in operating activities was ₹26,079.80 thousand, primarily due to an increase in short-term loans and advances of ₹26,626.98 thousand. Cash and cash equivalents at the end of the quarter stood at ₹22,634.81 thousand, compared to ₹63,780.73 thousand at the beginning of the year.

Regulatory Compliance and Audit

The financial results were reviewed by the Audit Committee and approved by the Board of Directors on February 12, 2026. Shankarlal Jain & Associates LLP, Chartered Accountants, conducted the limited review as required under Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The auditors expressed no material concerns regarding the financial statements' preparation and disclosure compliance.

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.