Interactive Financial Services Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025. The Board of Directors approved these results during their meeting held on February 13, 2026, which commenced at 02:00 P.M. and concluded at 03:40 P.M.

Financial Performance Overview

The company's financial performance for the reporting period demonstrates mixed results across different quarters and comparative periods.

Quarterly Results (Q3FY26)

Nine-Month Performance

Expense Analysis

The company's expense structure for Q3FY26 shows total expenses of ₹131,867 lakh compared to ₹77,271 lakh in the previous quarter. Key expense components include:

• Cost of Services Rendered: ₹56,700 lakh (Q3FY26) vs ₹13,850 lakh (Q2FY26)
• Employee Benefits Expenses: ₹59,602 lakh (Q3FY26) vs ₹45,851 lakh (Q2FY26)
• Other Expenses: ₹13,113 lakh (Q3FY26) vs ₹15,300 lakh (Q2FY26)
• Finance Costs: ₹1,271 lakh (Q3FY26) vs ₹1,091 lakh (Q2FY26)

Tax and Comprehensive Income

For Q3FY26, the company reported tax expenses of ₹18,241 lakh, comprising current tax of ₹16,150 lakh and deferred tax of ₹2,072 lakh. The total comprehensive income for the quarter stood at ₹30,636 lakh after accounting for other comprehensive expenses of ₹14,330 lakh.

Capital Structure and EPS Adjustments

The company's paid-up equity share capital remains at ₹693,103 lakh with a face value of ₹10 per share. During the quarter ended March 31, 2025, the company completed a rights issue of 39,17,030 equity shares at ₹30 per share. The market price immediately prior to the issue was ₹44.27, creating a bonus element that required retrospective EPS adjustments using an adjustment factor of 1.22.

Regulatory Compliance and Auditor Review

The financial results were prepared in compliance with Regulation 30 and 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. B T Vora & Co., Chartered Accountants (FRN: 123652W), conducted a limited review of the results. The auditors confirmed that nothing came to their attention suggesting material misstatements in the financial results.

Additional Disclosures

The company noted the implementation of four Labour Codes by the Government of India on November 21, 2025, consolidating 29 existing labour legislations. While these codes are effective, the related rules are yet to be fully notified, and the company is assessing their financial implications. Currently, there is no material impact from the new labour codes.

Interactive Financial has announced a significant change in the allocation of its rights issue proceeds, following shareholder approval in an Extraordinary General Meeting (EGM) held on September 25, 2025. The company has decided to reallocate ₹304.50 lakhs, originally earmarked for setting up office space, towards strengthening its net worth.

Reallocation Details

The deviation from the original plan occurred after the company's registered sale agreement for immovable properties at the 3rd Eye Vision project was cancelled during the quarter ended September 30, 2025. The funds, initially part of Object No. 2 in the Letter of Offer for "Setting up of Office Space," will now be utilized to bolster the company's financial position.

Shareholder Approval and Audit Committee Review

The reallocation of funds was approved by shareholders in the EGM, demonstrating their support for the company's strategic decision. The Audit Committee has also reviewed and approved this deviation, ensuring proper corporate governance procedures were followed.

Financial Impact

To provide a clear picture of the fund reallocation, here's a breakdown of the revised fund utilization:

Management Commentary

Pradip Sandhir, Managing Director of Interactive Financial Services Limited, stated, "This strategic reallocation of funds will allow us to strengthen our financial position, which is crucial in the current economic environment. We believe this decision is in the best interest of our shareholders and will contribute to the long-term stability and growth of the company."

Auditor's Remarks

The company's auditors have noted that the cancellation deed for the immovable properties at the 3rd Eye Vision project was executed after the period ending but before the declaration of results. Consequently, any expenses related to this transaction have been accounted for at the time of the cancellation deed's execution.

Conclusion

This reallocation of funds represents a significant shift in Interactive Financial's capital utilization strategy. By strengthening its net worth, the company aims to enhance its financial stability and potentially improve its market position. Shareholders and potential investors should closely monitor how this change impacts the company's financial performance and growth prospects in the coming quarters.