Dharani Finance Reports Q2 FY26 Results: Revenue Up, Profit Down Amid Auditor Concerns

2 min read Updated on 13 Nov 2025, 02:54 AM

Reviewed by

Ashish TScanX News Team

Overview

Dharani Finance Limited announced Q2 FY26 results with revenue up 42.2% YoY to Rs 33.04 lakhs, but net profit down 7.6% to Rs 9.99 lakhs. H1 FY26 saw revenue growth of 13.5% but a 36.9% decline in net profit. Auditors raised concerns about an outstanding inter-corporate deposit and potential non-compliance with RBI norms for NBFCs, which could affect the company's NBFC status and going concern assumption. Management continues operations as usual, maintaining a strong equity position of Rs 974.77 lakhs.

*this image is generated using AI for illustrative purposes only.

Dharani Finance Limited , a Non-Banking Financial Company (NBFC), has announced its unaudited financial results for the quarter ended September 30, 2025. The company reported a mixed performance with increased revenue but a decline in profit, while facing ongoing concerns from auditors regarding an outstanding inter-corporate deposit.

Financial Highlights

For Q2 FY26, Dharani Finance reported:

Metric	Q2 FY26	Q2 FY25	YoY Change
Total Revenue	Rs 33.04 lakhs	Rs 23.23 lakhs	42.2%
Net Profit	Rs 9.99 lakhs	Rs 10.81 lakhs	-7.6%

The company's total revenue from operations saw a significant increase of 42.2% year-over-year, rising from Rs 23.23 lakhs in Q2 FY25 to Rs 33.04 lakhs in Q2 FY26. However, despite the revenue growth, net profit for the quarter decreased by 7.6%, from Rs 10.81 lakhs to Rs 9.99 lakhs.

Half-Year Performance

For the half-year ended September 30, 2025:

Metric	H1 FY26	H1 FY25	YoY Change
Total Revenue	Rs 69.03 lakhs	Rs 60.83 lakhs	13.5%
Net Profit	Rs 26.43 lakhs	Rs 41.86 lakhs	-36.9%

The company's half-yearly results show a 13.5% increase in total revenue but a substantial 36.9% decrease in net profit compared to the same period last year.

Auditor Concerns

The statutory auditors have issued a qualified opinion on the unaudited financial results, highlighting two key issues:

The company has not received interest on an inter-corporate deposit of Rs 200 lakhs given to Aryav Exports Private Limited since July 2017.
If provisions were made for this outstanding balance, the company's net owned funds would fall below the limits prescribed by the Reserve Bank of India (RBI) for NBFCs.

The auditors noted that these issues may affect Dharani Finance's ability to continue as an NBFC and as a going concern. The company's future operations may depend on capital infusion to meet minimum net owned funds criteria and identification of alternative business plans.

Management Response

The management has prepared the financial statements on a going concern basis. The company continues to recognize revenue and conduct operations as usual.

Segment Performance

Dharani Finance operates primarily in the financial services segment. For Q2 FY26, the segment reported:

Revenue: Rs 33.04 lakhs
Profit before tax and interest: Rs 23.49 lakhs

The company does not have any other reportable segments as per Ind AS 108 - Operating Segments.

Balance Sheet Position

As of September 30, 2025:

Total Assets: Rs 1,021.06 lakhs
Total Liabilities: Rs 46.30 lakhs
Total Equity: Rs 974.77 lakhs

The company maintains a strong equity position, with equity share capital of Rs 499.72 lakhs and other equity of Rs 475.05 lakhs.

Investors and stakeholders should closely monitor the company's efforts to address the auditor's concerns, particularly regarding the outstanding inter-corporate deposit and compliance with RBI norms for NBFCs. The company's ability to resolve these issues may have a significant impact on its future operations and regulatory status as an NBFC.

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