Lead Financial Services Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing a decline in quarterly profitability compared to the previous year. The results were approved by the Board of Directors at their meeting held on February 2, 2026, which was conducted from 03:30 p.m. and concluded at 04:30 p.m.

Financial Performance Overview

The company's financial performance for the quarter showed mixed results with revenue stability but reduced profitability. Total revenue from operations for Q3FY26 stood at ₹14.76 lakhs compared to ₹16.22 lakhs in Q3FY25, representing a decline. For the nine-month period, revenue remained nearly flat at ₹47.24 lakhs versus ₹47.21 lakhs in the corresponding period last year.

Revenue Composition and Analysis

The company's revenue streams showed varying performance across different segments. Interest income decreased to ₹8.76 lakhs in Q3FY26 from ₹10.22 lakhs in Q3FY25. Sale of services remained consistent at ₹6.00 lakhs for both quarters. For the nine-month period, interest income was ₹29.24 lakhs compared to ₹29.21 lakhs, while sale of services maintained steady performance at ₹18.00 lakhs.

Expense Management and Profitability

Total expenses for Q3FY26 increased significantly to ₹10.12 lakhs from ₹6.38 lakhs in Q3FY25. The major contributors to this increase included other expenses rising to ₹7.33 lakhs from ₹3.59 lakhs, and employee benefits expense increasing to ₹2.59 lakhs from ₹2.39 lakhs. Despite the revenue decline, profit before tax for the quarter was ₹4.64 lakhs compared to ₹9.82 lakhs in the previous year.

Key Financial Highlights

The company maintained a stable equity base with paid-up equity share capital remaining constant at ₹330.00 lakhs across all periods. Earnings per share for the quarter declined to ₹0.10 from ₹0.22 in the corresponding quarter last year. For the nine-month period, earnings per share decreased to ₹0.39 from ₹0.45. The company reported other comprehensive income of ₹0.42 lakhs for Q3FY26 compared to negative ₹0.90 lakhs in Q3FY25.

Regulatory Compliance and Business Operations

As a Non-Banking Financial Company (NBFC), Lead Financial Services operates primarily in financial services with no separate reportable segments under Ind-AS 108. The company confirmed compliance with RBI notifications, stating that during the quarter and nine months ended December 31, 2025, no loans were acquired or transferred through assignment, and no stressed loans were acquired or transferred. The results have been reviewed by the statutory auditors and approved by the Audit Committee before Board approval. The company has also filed the necessary regulatory disclosures under Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 with BSE Limited and The Calcutta Stock Exchange Limited.

Lead Financial Services Limited , a non-banking financial company (NBFC), has released its unaudited financial results for the second quarter and half-year ended September 30, 2025, revealing a mixed performance with significant changes in key financial metrics.

Quarterly Performance

The company reported a sharp decline in its quarterly profit after tax, which fell to Rs. 1.14 lakhs in Q2 FY2026, down 88% from Rs. 9.43 lakhs in the previous quarter. This substantial decrease in profitability may raise concerns among investors about the company's short-term financial health.

Half-Year Results

Despite the weak quarterly performance, Lead Financial Services showed improvement in its half-yearly results. The profit after tax for the first six months of FY2026 increased to Rs. 9.56 lakhs, up from Rs. 7.60 lakhs in the corresponding period of the previous year, marking a 25.8% year-on-year growth.

Loan Portfolio Expansion

A notable highlight from the financial results is the significant expansion of the company's loan portfolio. As of September 30, 2025, the loan book stood at Rs. 764.50 lakhs, representing a 20.2% increase from Rs. 635.95 lakhs reported at the end of the previous financial year (March 31, 2025).

Cash Position

The company's cash position has seen a dramatic decline, with cash and cash equivalents dropping to Rs. 2.16 lakhs as of September 30, 2025, compared to Rs. 121.73 lakhs at the end of the previous financial year. This significant reduction in liquidity may be attributed to the expansion of the loan portfolio and warrants attention from stakeholders.

Financial Position Overview

Income Statement Highlights

For the half-year ended September 30, 2025:

• Total Revenue: Rs. 32.48 lakhs
• Operating Profit: Rs. 12.89 lakhs
• Net Profit: Rs. 9.56 lakhs

Conclusion

Lead Financial Services Limited's Q2 FY2026 results present a mixed picture. While the quarterly profit has seen a sharp decline, the half-yearly performance shows improvement. The substantial growth in the loan portfolio indicates an aggressive lending strategy, which could drive future growth but also carries inherent risks. Investors and stakeholders will likely be watching closely to see how the company manages its expanded loan book and improves its profitability in the coming quarters.

Note: All financial figures are based on unaudited results as reported by the company for the quarter and half-year ended September 30, 2025.