KBS India Limited has announced its unaudited standalone financial results for the quarter ended December 31, 2025, revealing mixed performance with quarterly losses offset by nine-month profitability. The Board of Directors approved these results during their meeting held on February 9, 2026, which commenced at 2:00 PM and concluded at 4:00 PM.

Quarterly Financial Performance

The company reported a net loss of ₹14.01 lakhs for Q3FY26, significantly higher than the ₹1.09 lakhs loss recorded in the corresponding quarter of the previous year. This deterioration in quarterly performance contrasts with the previous quarter (Q2FY26), where the company had achieved a net profit of ₹5.12 lakhs.

Revenue and Income Analysis

Revenue from operations declined to ₹54.13 lakhs in Q3FY26 from ₹57.56 lakhs in Q3FY25, representing a decrease from the previous year. Other income contributed ₹12.00 lakhs compared to ₹16.09 lakhs in the corresponding quarter last year. The total income from operations stood at ₹66.13 lakhs, down from ₹73.65 lakhs in Q3FY25.

Expense Structure

Total expenses for the quarter amounted to ₹84.85 lakhs compared to ₹75.10 lakhs in Q3FY25. Employee benefit expenses increased to ₹27.92 lakhs from ₹24.12 lakhs year-on-year. Administration expenses rose to ₹32.74 lakhs from ₹25.35 lakhs, while other expenditure decreased to ₹18.89 lakhs from ₹22.21 lakhs in the corresponding quarter.

Nine-Month Performance Highlights

Despite quarterly challenges, the company demonstrated strong nine-month performance with a net profit of ₹18.80 lakhs for the period ended December 31, 2025, compared to ₹11.50 lakhs in the corresponding nine-month period of the previous year.

Auditor's Observations

The statutory auditors, Bhuta Shah & Co LLP, conducted a limited review and highlighted two significant concerns. First, gratuity liability for employees has not been provided as required by Ind AS 19 on Employee Benefits, with the impact remaining unquantified due to the absence of actuarial valuation. Second, long-term loans amounting to ₹16,65,40,533 and current account outstanding balance of ₹8,02,444 as on December 31, 2025, are receivable from KBS Capital Management Singapore Pte Ltd, which has been struck off, with no provision made for these amounts.

Corporate Information

KBS India Limited operates exclusively in the shares and stock broking segment, with no separate reportable segments as per Ind AS 108 on Operating Segments. The company maintains a paid-up equity share capital of ₹1,082.12 lakhs with a face value of ₹10 per share. The financial results have been prepared in accordance with Ind AS 34 Interim Financial Reporting and comply with Regulation 33 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

KBS India , a Mumbai-based company, has submitted statements detailing the impact of audit qualifications for the quarter and half-year ended September 30, 2025. The company's financial results reveal a mixed picture, with notable concerns raised by auditors regarding certain financial practices.

Audit Qualifications

The auditors have identified two key qualifications in their report:

1. Outstanding Amounts from Subsidiary: The company has outstanding amounts of Rs. 16.65 crore in long-term loans and Rs. 8.02 lakh in current account balances receivable from KBS Capital Management Singapore Pte Ltd, a subsidiary that has been closed down. No provision has been made for these amounts, resulting in an overstatement of profit and reserves.

2. Gratuity Liability: KBS Limited has not provided for gratuity liability as required by IndAS 19. The impact of this non-provision remains unquantified due to the absence of an actuarial valuation.

Financial Performance

Despite these qualifications, KBS Limited reported the following financial results for Q2 FY2026:

Management Response

The management of KBS Limited has stated that they are awaiting confirmation from the Reserve Bank of India (RBI) regarding the amounts related to the Singapore subsidiary. They have also acknowledged the issue concerning gratuity liability and indicated that it is being addressed.

Regulatory Compliance

In compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, KBS Limited has published its unaudited financial results in newspapers. The results were published in Business Standard and Pratahkal on November 10, 2025.

Investor Considerations

While the company has reported a profit, investors may need to consider the potential impact of the audit qualifications on the company's financial position. The unresolved issues regarding the closed subsidiary and the non-provision of gratuity liability may affect the accuracy of the reported financial figures.

KBS Limited's board of directors, led by Managing Director Tushar Suresh Shah, approved these results in a meeting held on November 7, 2025.

As the company works to address these audit qualifications, stakeholders will likely keep a close watch on future communications from KBS Limited regarding the resolution of these financial matters.