Ken Financial Services Limited , a Mumbai-based financial services company, has reported a mixed set of results for the second quarter of the fiscal year 2025-26. The company's unaudited financial results, approved by the Board of Directors on November 13, 2025, reveal a complex financial picture with declining revenue and profitability.

Revenue and Profit Analysis

For the quarter ended September 30, 2025, Ken Financial Services reported:

The company experienced a significant decline in its interest income, which fell by 26.8% year-over-year. This decrease in revenue was accompanied by a decline in profitability, with Profit After Tax decreasing by 17.9%.

Financial Position and Borrowings

A notable aspect of the company's financial position is the substantial reduction in borrowings:

• As of September 30, 2025: ₹27.21 crore
• As of March 31, 2025: ₹232.40 crore

This significant decrease in borrowings by approximately 88.3% may indicate a strategic shift in the company's financial structure or improved liquidity position.

Balance Sheet Highlights

The balance sheet data as of September 30, 2025, shows:

• Total Assets: ₹794.03 crore
• Total Liabilities and Equity: ₹794.03 crore
• Equity Share Capital: ₹300.01 crore (unchanged from March 31, 2025)
• Other Equity: ₹445.27 crore (increased from ₹425.46 crore as of March 31, 2025)

Cash Flow and Liquidity

The cash flow statement indicates:

• Net Cash generated from operating activities: ₹207.75 crore
• Net Cash used in financing activities: ₹205.19 crore
• Net increase in Cash and Cash Equivalents: ₹2.56 crore

The company's cash and cash equivalents stood at ₹6.97 crore at the end of the quarter, up from ₹4.41 crore at the beginning of the financial year.

Management Commentary

While specific management comments were not provided in the available data, the financial results suggest that Ken Financial Services is navigating through a challenging period of reduced interest income and profitability.

Auditor's Review

The statutory auditors, Satya Prakash Natani & Co., conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe that the financial statements do not present a true and fair view in accordance with applicable accounting standards and SEBI regulations.

Investors and stakeholders may want to keep a close eye on Ken Financial Services' future performance, particularly its ability to revive revenue growth and improve profitability in the coming quarters.

Ken Financial Services has reported a remarkable financial performance for the first quarter, showcasing significant growth across key metrics.

Financial Highlights

• Profit Soars: The company's profit reached ₹15.47 lakh, marking a substantial increase from ₹0.73 lakh in the previous quarter and ₹1.12 lakh in the same quarter last year.
• Revenue Growth: Total income surged to ₹56.93 lakh, up from ₹16.56 lakh in the previous quarter.
• Diversified Income Streams: Revenue from operations stood at ₹54.31 lakh, comprising ₹14.31 lakh from interest income and ₹40.00 lakh from services income.
• Increased Expenses: Total expenses rose to ₹35.15 lakh from ₹15.44 lakh in the previous quarter, reflecting the company's expanded operations.
• Improved Profitability: Earnings per share (EPS) for the quarter stood at ₹0.52, significantly higher than previous periods.

Performance Analysis

Ken Financial Services has demonstrated a strong start to the fiscal year, with its profit showing a remarkable year-on-year growth of 1,381%. The company's strategic focus on diversifying its revenue streams, particularly the addition of substantial services income, has contributed significantly to this growth.

Quarterly Performance Comparison

The table clearly illustrates the company's significant improvement across all financial parameters in the current quarter compared to both the previous quarter and the same quarter last year.

Management Commentary

While specific management comments were not provided, the robust financial results suggest that Ken Financial Services' strategies for growth and revenue diversification are yielding positive outcomes.

Investor Relations

The company reported no shareholder complaints during the quarter, indicating positive investor relations. Ken Financial Services continues to operate solely in financial activities, maintaining its focus on its core business.

Conclusion

Ken Financial Services Limited has kicked off the quarter with an impressive financial performance, marked by substantial growth in profit and revenue. The significant increase in services income alongside steady interest income reflects a successful diversification strategy. As the company moves forward, investors and market watchers will likely keep a close eye on its ability to sustain this growth trajectory and further capitalize on market opportunities in the financial services sector.