DCM Financial Services Limited has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025, revealing continued operational losses across both standalone and consolidated operations.

Financial Performance Overview

The company's standalone financial performance for Q3 FY26 showed deteriorating results compared to the previous year. The net loss increased to Rs. 25.95 lakhs from Rs. 23.77 lakhs in Q3 FY25, representing a decline in operational efficiency.

Nine-Month Performance Analysis

The nine-month period ending December 31, 2025, revealed more concerning trends with significantly widened losses. The company's standalone net loss expanded to Rs. 89.85 lakhs compared to Rs. 36.76 lakhs in the corresponding period of FY25.

Consolidated Results

The consolidated financial results, which include subsidiary Global IT Options Ltd., showed similar performance patterns. The consolidated net loss for Q3 FY26 stood at Rs. 25.92 lakhs compared to Rs. 23.97 lakhs in Q3 FY25. For the nine-month period, the consolidated loss reached Rs. 89.78 lakhs against Rs. 37.15 lakhs in the previous year.

Audit Qualifications and Concerns

The auditors have highlighted significant concerns in their limited review report. The company has not provided interest on secured and unsecured loans totaling approximately Rs. 143.00 lakhs for the quarter, which understates the actual loss position. Key audit observations include:

• Non-provision of interest on 19.5% debentures amounting to Rs. 40.41 lakhs
• Unprovided interest on bills payable and fixed deposits of Rs. 102.59 lakhs
• Outstanding issues related to the One Man Committee scheme for depositor settlements
• Contingent liabilities including arbitration matters with NBCC Ltd. worth Rs. 288.29 lakhs

Board Meeting and Compliance

The Board of Directors approved these results in a meeting held on February 9, 2026, from 3:00 PM to 4:00 PM at the company's registered office in Delhi. The meeting was chaired by Nidhi Deveshwar, Chairperson and Whole Time Director. The results have been filed with BSE Limited, National Stock Exchange of India Ltd., and The Calcutta Stock Exchange Ltd. in compliance with SEBI regulations.

Operational Context

DCM Financial Services operates in a single business segment, making segment reporting inapplicable. The company continues to face challenges related to legacy issues including depositor settlements and ongoing legal matters that impact its financial position and operational performance.

DCM Financial Services Limited , a Delhi-based financial services company, has reported a significant increase in net loss for the quarter ended September 30, 2025. The company's financial performance continues to face challenges, as revealed in its recently released unaudited financial results.

Financial Highlights

• Quarterly Performance: DCM Financial Services reported a net loss of Rs 38.58 lakhs for Q2 FY2026, compared to a loss of Rs 25.33 lakhs in Q1 FY2026. This represents a substantial increase in losses quarter-over-quarter.

• Half-Year Results: For the half-year ended September 30, 2025, the company's net loss stood at Rs 63.91 lakhs, a significant deterioration from the Rs 12.99 lakhs loss reported in the corresponding period of the previous year.

• Revenue and Expenses: The company's total income for Q2 FY2026 was Rs 9.36 lakhs, down from Rs 22.46 lakhs in Q1 FY2026. Total expenses for the quarter were Rs 49.95 lakhs, slightly higher than the Rs 48.06 lakhs reported in the previous quarter.

Key Financial Metrics

Balance Sheet Overview

As of September 30, 2025, DCM Financial Services reported:

• Total Assets: Rs 2,059.41 lakhs
• Total Equity and Liabilities: Rs 2,059.41 lakhs
• Equity Share Capital: Rs 2,212.51 lakhs
• Other Equity: Rs (7,288.17) lakhs (negative)

Auditor's Observations

The statutory auditors have highlighted significant concerns in their report, including:

1. Non-provision of interest worth Rs 143.07 lakhs on debentures and fixed deposits for the quarter.
2. Unprovided interest on debentures and fixed deposits amounting to Rs 1,683 lakhs.
3. Total financial indebtedness of Rs 56.99 crores, including Rs 14.17 crores in bank loans and Rs 16.03 crores in unlisted debt securities.
4. Ongoing legal disputes, including arbitration with NBCC Ltd involving Rs 288.29 lakhs.

Management Comments

The company operates under a court-appointed One Man Committee scheme for resolving depositor disputes. The management has not provided any specific comments on the financial performance or future outlook in the released statements.

Conclusion

DCM Financial Services Limited continues to face significant financial challenges, with widening losses and substantial liabilities. The company's ability to turn around its performance remains uncertain, given the ongoing legal disputes and financial constraints.

Investors and stakeholders should closely monitor the company's efforts to address its financial obligations and improve its operational performance in the coming quarters.