HB Leasing & Finance Co. has reported a net loss of Rs 18.22 lakh for the second quarter and half year ended September 30, 2025. The company's financial performance shows a decline compared to the same period last year, with total income and expenses both impacting the bottom line.

Financial Highlights

Revenue Breakdown

The company's total income for the quarter stood at Rs 8.47 lakh. This includes:

• Fee and advisory income of Rs 8.27 lakh
• Net gain on fair value changes of Rs 0.20 lakh

Expense Analysis

Major expenses for the quarter comprised:

• Employee benefit expenses of Rs 9.51 lakh
• Other expenses of Rs 17.16 lakh

Key Financial Metrics

• Earnings per share (EPS) for the quarter: Rs (0.14)
• Cash and cash equivalents decreased to Rs 111.84 lakh from Rs 138.76 lakh

Board Approval and Auditor's Review

The Board of Directors approved these unaudited financial results at their meeting held on November 12, 2025. The Statutory Auditors, M/s N.C. Aggarwal & Co., have carried out a Limited Review of the financial results for the quarter and half year ended September 30, 2025, as per SEBI regulations. They have expressed an unmodified opinion on these results.

Recent Corporate Actions

On March 12, 2025, the company allotted 1,800,000 Equity Shares on a Preferential Basis:

• 1,160,000 Equity Shares to the Promoter Group
• 640,000 Equity Shares to a Non-Promoter
• Issue price: Rs 18 per share (including Rs 8 premium per share)

The total amount of Rs 324 lakh raised has been utilized for business expansion, working capital needs, general corporate purposes, and ensuring compliance with RBI's minimum net owned fund requirements for Non-Banking Financial Companies.

HB Leasing and Finance Company Limited is registered as an NBFC with the Reserve Bank of India. The company currently reports no segmental information as per Indian Accounting Standard - 108 on "Operating Segments."

The financial results have been prepared in accordance with the Companies (Indian Accounting Standard) Rule, 2015 (Ind AS) and other recognized accounting practices and policies.

HB Leasing & Finance Co. has reported a wider net loss for the first quarter, despite an increase in total income. The company's financial results, approved by its Board of Directors on August 2, reveal both challenges and signs of improvement in its operations.

Financial Performance

The non-banking financial company (NBFC) posted a net loss of Rs 8.08 lakhs for the quarter, compared to a loss of Rs 7.68 lakhs in the same period last year. This represents a 5.21% increase in net loss year-over-year.

Despite the wider loss, HB Leasing & Finance saw a positive trend in its revenue:

The company's total income increased to Rs 4.21 lakhs from Rs 3.95 lakhs year-over-year, primarily driven by higher fee and advisory income, which rose to Rs 4.11 lakhs from Rs 3.00 lakhs in the previous year.

Expense Management

Total expenses for the quarter rose to Rs 12.16 lakhs from Rs 11.63 lakhs in the corresponding period last year. The breakdown of expenses includes:

• Employee benefit expenses: Rs 4.74 lakhs
• Other expenses: Rs 7.41 lakhs
• Depreciation and amortization: Rs 0.01 lakhs

Per Share Performance

The company's earnings per share (EPS) for the quarter stood at negative Rs 0.06, reflecting the reported loss.

Recent Capital Infusion

It's worth noting that HB Leasing & Finance had previously raised Rs 324 lakhs through a preferential allotment of 1.8 million equity shares at Rs 18 per share in March 2025. This capital infusion was aimed at business expansion, meeting working capital needs, and ensuring compliance with RBI's minimum net owned fund requirements for NBFCs.

Business Outlook

While the company has not provided specific management commentary in the released results, the increased fee and advisory income suggests potential traction in its core business activities. However, the widening losses indicate ongoing challenges in achieving profitability.

As HB Leasing & Finance continues to navigate the competitive NBFC landscape, investors and stakeholders will be watching closely to see if the recent capital infusion and growth in fee income can translate into improved bottom-line performance in the coming quarters.