HB Leasing & Finance Reports Widened Q1 Loss, Sees Revenue Growth
HB Leasing & Finance Co. reported a net loss of Rs 8.08 lakhs for Q1, up 5.21% from the previous year's loss of Rs 7.68 lakhs. Total income increased by 6.58% to Rs 4.21 lakhs, driven by a 37% rise in fee and advisory income to Rs 4.11 lakhs. Total expenses grew 4.56% to Rs 12.16 lakhs. The company's EPS stood at negative Rs 0.06. In March, the company had raised Rs 324 lakhs through a preferential allotment for business expansion and working capital needs.
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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:
| Particulars (in Rs. lakhs) | Q1 FY2026 | Q1 FY2025 | YoY Change |
|---|---|---|---|
| Total Income | 4.21 | 3.95 | +6.58% |
| Fee and Advisory Income | 4.11 | 3.00 | +37.00% |
| Total Expenses | 12.16 | 11.63 | +4.56% |
| Net Loss | (8.08) | (7.68) | +5.21% |
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.
Historical Stock Returns for HB Leasing & Finance Co.
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.66% | +0.51% | -1.99% | +5.83% | -23.67% | +978.13% |
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