K.Z.Leasing & Finance Ltd. has announced its unaudited financial results for the third quarter of fiscal year 2026, revealing a net loss of ₹58.51 lacs compared to a significantly higher loss of ₹404.34 lacs in the corresponding quarter of the previous year. The Ahmedabad-based financial services company's Board of Directors adopted these results during their meeting held on February 6, 2026.

Financial Performance Overview

The company's financial performance for Q3FY26 showed mixed results with substantial improvement in net loss despite declining revenues. Revenue from operations dropped significantly by 56.93% to ₹9.74 lacs compared to ₹22.62 lacs in Q3FY25.

Nine-Month Performance Analysis

For the nine months ended December 31, 2025, the company reported revenue from operations of ₹33.75 lacs compared to ₹52.57 lacs in the corresponding period of the previous year, representing a decline of 35.81%. The net loss for the nine-month period stood at ₹81.42 lacs compared to ₹73.64 lacs in the previous year.

Expense Structure and Key Components

The company's expense structure showed significant variations across different categories. Finance costs increased dramatically to ₹68.42 lacs in Q3FY26 from ₹7.69 lacs in Q3FY25. Employee benefits expense decreased to ₹20.42 lacs from ₹26.12 lacs, while other expenses declined to ₹11.96 lacs from ₹47.66 lacs in the corresponding quarter.

Other Comprehensive Income Impact

Despite operational challenges, the company benefited significantly from other comprehensive income, primarily driven by fair value changes of investments in equity shares worth ₹489.42 lacs in Q3FY26. This positive impact resulted in total comprehensive income of ₹303.66 lacs for the quarter, compared to a loss of ₹374.44 lacs in Q3FY25.

Board Meeting and Regulatory Compliance

The Board of Directors meeting was conducted at the company's registered office at Deshna Chambers, Usmanpura, Ashram Road, Ahmedabad from 12:00 pm to 1:45 pm on February 6, 2026. The financial results were adopted in compliance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirement) Regulations, 2015.

The results were reviewed by the Audit Committee and received limited review from the company's statutory auditors, S V J K and Associates, Chartered Accountants. The company continues to operate primarily in the finance segment and maintains its listing on the Bombay Stock Exchange under scrip code 511728.

KZ Leasing & Finance Limited, a Gujarat-based financial services company, has released its unaudited financial results for the quarter ended June 30. The company reported a mixed financial performance, with a notable increase in profit despite facing significant fair value losses on equity investments.

Financial Highlights

Key Takeaways

1. Profit Growth: The company reported a net profit of 62.62 lakh for the quarter, marking a 14.02% increase from the previous quarter's 54.92 lakh.

2. Revenue Surge: Revenue from operations more than doubled, reaching 14.46 lakh compared to 6.75 lakh in the previous quarter, representing a substantial growth of 114.22%.

3. Other Income Boost: Other income saw a significant rise to 155.98 lakh from 82.68 lakh, contributing substantially to the total income.

4. Increased Expenses: Total expenses rose to 85.62 lakh from 51.41 lakh, with other expenses showing a notable increase to 47.12 lakh.

5. Earnings Per Share: The basic and diluted earnings per share stood at 2.06, up from 1.81 in the previous quarter.

6. Fair Value Impact: Despite the profit, the company recorded a total comprehensive loss of 25.75 lakh due to fair value changes in equity investments amounting to 119.43 lakh.

7. Tax Provisions: The company paid a current tax of 22.19 lakh for the quarter.

Management Approval

The unaudited financial results were reviewed by the Audit Committee and subsequently approved by the Board of Directors at their meeting held on August 5. The results have undergone a limited review by the company's statutory auditors.

Conclusion

While KZ Leasing & Finance Limited demonstrated strong growth in revenue and operational profit, the significant fair value losses on equity investments impacted its overall financial position. The company's ability to more than double its revenue from operations and increase other income substantially indicates positive operational performance. However, the fair value changes highlight the volatility associated with equity investments in the current market conditions.

Investors and stakeholders may want to closely monitor how the company manages its investment portfolio and operational expenses in the coming quarters, given the substantial increase in both income and expenses.