Jagsonpal Services Reports Q2 FY26 Loss of Rs 98.69 Lakhs Amid Corporate Restructuring

Jagsonpal Finance & Leasing Limited (now known as Jagsonpal Services Limited) has reported a significant loss for the quarter ended September 30, 2025, as the company undergoes major corporate restructuring and strategic shifts.

Financial Performance

The company reported a net loss of Rs 98.69 lakhs for Q2 FY26, compared to a profit of Rs 11.08 lakhs in the same quarter of the previous year. Key financial metrics include:

Particulars	Q2 FY26	Q2 FY25	Change
Total Income	15.77	13.64	+15.6%
Total Expenses	114.59	2.56	+4376.2%
Net Profit/(Loss)	(98.69)	11.08	-990.7%

All figures in Rs lakhs

The substantial increase in expenses, particularly in rent (Rs 64.98 lakhs) and legal and professional fees (Rs 6.41 lakhs), suggests significant operational changes and potential restructuring costs.

Half-Year Performance

For the half-year period ended September 30, 2025, Jagsonpal Services recorded a cumulative loss of Rs 205.77 lakhs, driven by increased operational costs and expenses related to the company's ongoing transformation.

Corporate Actions and Strategic Shifts

Name Change: The company has changed its name from Jagsonpal Finance & Leasing Limited to Jagsonpal Services Limited, as approved in the Annual General Meeting held on September 22, 2025.
Business Focus: Jagsonpal Services now operates in a single segment, focusing on software/IT projects including product development and applications.
Acquisition Plans: On August 21, 2025, the company entered into a Share Purchase Agreement to acquire 100% equity shares of Welcast Finstocks Private Limited. Approximately 18% of the purchase consideration has been paid, with the transaction pending completion.

Balance Sheet Highlights

As of September 30, 2025:

Particulars	Amount
Total Assets	1,463.19
Total Equity	1,410.08
Current Liabilities	52.24

All figures in Rs lakhs

The company's balance sheet shows a significant increase in non-current assets, particularly in investments (Rs 1,016.41 lakhs), likely related to the ongoing acquisition of Welcast Finstocks Private Limited.

Outlook

While the current quarter shows a substantial loss, the company's strategic shifts, including the focus on software/IT projects and the planned acquisition, suggest a transformative phase. The increased expenses, particularly in rent and professional fees, indicate investments in new operations and restructuring efforts.

Investors and stakeholders may be watching how these strategic moves translate into financial performance in the coming quarters, especially as the company completes its acquisition and potentially expands its IT services offerings.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+3.76%	+22.48%	+54.92%	+89.02%	+44.13%	+2,962.99%

Jagsonpal Finance & Leasing has announced its intention to acquire Welcast Finstocks Pvt Ltd, a Non-Banking Financial Company (NBFC), in a strategic move to bolster its lending capabilities and establish a stronger foothold in the education finance sector. The proposed acquisition, which is subject to regulatory approvals including clearance from the Reserve Bank of India (RBI), aims to combine Welcast's retail and SME lending expertise with Jagsonpal Finance & Leasing's technology-driven platform.

Strategic Focus on Education Finance

The acquisition is particularly focused on enhancing Jagsonpal Finance & Leasing's presence in the education finance market, with a specific emphasis on overseas education financing. This move comes as India experiences a growing demand for financial support among students pursuing international studies.

Regulatory Approval Process

Jagsonpal Finance & Leasing has initiated the approval process under the RBI's Master Direction for NBFCs. As per regulations, the company requires prior written permission for acquisitions involving 26% or more equity or significant changes in board composition. The company has stated that it will provide further updates as the approval process advances.

Management's Perspective

Karthik Srinivasan, Chairman and Managing Director of Jagsonpal Finance & Leasing, commented on the proposed acquisition: "Welcast Finstocks has built a strong foundation in retail and SME lending. Combined with our tech-driven approach, we aim to build a more agile, tech-driven, and customer-focused NBFC that can better serve India's evolving financial needs, including the growing demand for education financing for students pursuing overseas studies."

Strategic Value Creation

The acquisition is expected to create value through several key areas:

Market Leadership: Targeting India's growing overseas education lending opportunity
Operational Scale: Expanding lending capacity across retail and SME segments
Technology Edge: Integrating digital-first lending with traditional NBFC strengths
Geographic Reach: Deepening penetration in underserved markets

Company Profile

Jagsonpal Finance & Leasing is a fintech company focused on technology-enabled financial solutions. The company's mission is to expand access to affordable financing by leveraging digital innovation to serve retail customers, SMEs, and education loan seekers across India.

As the approval process unfolds, Jagsonpal Finance & Leasing has committed to providing further disclosures on material developments, regulatory milestones, and integration planning. The company emphasizes its dedication to compliance, transparency, and responsible growth in this strategic expansion.