Kumbhat Financial Services Limited (KFSL) has reported a substantial increase in its loan portfolio for the quarter ended September 30, 2025. The company's unaudited financial results, approved by the Board of Directors, reveal notable growth and changes in its financial position.

Loan Portfolio Expansion

KFSL's loan portfolio witnessed a remarkable surge, increasing to Rs 2,198.31 crore as of September 30, 2025, compared to Rs 292.71 crore in the previous year. This significant growth of over 650% indicates a robust expansion in the company's lending activities.

Financial Performance Highlights

The company's financial results for Q2 FY2026 showcase several key points:

Despite the substantial increase in total income, the profit before tax saw a decline, which may be attributed to increased expenses associated with the rapid expansion of the loan portfolio.

Balance Sheet Strengthening

The balance sheet of KFSL as of September 30, 2025, reflects the company's growth:

• Total Assets increased to Rs 2,274.87 crore, up from Rs 486.64 crore in the previous year.
• Borrowings (other than Debt Securities) stood at Rs 1,500.00 crore, compared to Rs 202.19 crore in the previous year.
• The company's equity position improved, with Total Equity rising to Rs 549.04 crore from Rs 273.10 crore.

Liquidity Position

KFSL's cash and cash equivalents decreased to Rs 19.14 crore as of September 30, 2025, from Rs 380.99 crore in March 2025. This reduction in cash position may be attributed to the significant expansion in the loan portfolio.

Auditor's Review

The statutory auditors, Joseph & Rajaram, Chartered Accountants, have provided an unmodified limited review report for the quarter and half-year ended September 30, 2025. They stated that nothing has come to their attention that causes them to believe that the financial results do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

Management Commentary

Sanjay Kumbhat, Managing Director of KFSL, signed off on the financial statements. The company's board meeting, held on November 14, 2025, commenced at 3:00 p.m. and concluded at 4:00 p.m., where these results were approved.

The significant growth in KFSL's loan portfolio and total income suggests an aggressive expansion strategy. However, investors and analysts may want to closely monitor the company's profitability and liquidity position in the coming quarters, given the substantial changes in its financial structure.

Kumbhat Financial Services Limited, a retail loan provider, has announced its financial results for the first quarter, revealing a significant decline in net profit despite an increase in revenue.

Financial Highlights

• Net profit stood at ₹11.39 lakh, down 93% from ₹163.93 lakh in the same quarter last year
• Total revenue from operations increased to ₹146.20 lakh, up 16.6% year-over-year
• Interest income rose to ₹139.65 lakh, compared to ₹118.96 lakh in the same quarter last year
• Total expenses surged to ₹134.16 lakh from negative ₹65.49 lakh in the previous year
• Earnings per share (EPS) decreased to ₹0.21 from ₹3.45 year-over-year

Revenue Growth and Expense Surge

Kumbhat Financial Services saw a notable increase in its revenue from operations, primarily driven by higher interest income. The company's interest income grew by 17.4% to ₹139.65 lakh, contributing significantly to the overall revenue growth.

However, the company experienced a substantial rise in total expenses, which jumped to ₹134.16 lakh from a negative ₹65.49 lakh in the same quarter last year. This surge in expenses was mainly attributed to increased finance costs and fees expenses.

Profit Decline

Despite the growth in revenue, Kumbhat Financial Services witnessed a sharp decline in net profit. The company's net profit stood at ₹11.39 lakh, representing a 93% decrease from the ₹163.93 lakh reported in the same quarter of the previous fiscal year.

Key Financial Metrics

Management Approval

The Board of Directors of Kumbhat Financial Services Limited approved these unaudited financial results during their meeting on August 11. The meeting, which commenced at 3:00 p.m. and concluded at 4:00 p.m., also included a review of the Limited Review report from the company's statutory auditors.

Kumbhat Financial Services Limited continues to operate primarily in the retail loans segment. The company's performance in the coming quarters will be closely watched by investors and analysts to assess its ability to manage expenses and improve profitability while maintaining revenue growth.