LKP Finance Limited has reported its unaudited financial results for the third quarter ended December 31, 2025, marking a significant turnaround in profitability alongside a strategic business transformation from traditional NBFC operations to the digital gifting sector.

Financial Performance Overview

The company delivered strong quarterly results with notable improvements across key metrics:

For the nine-month period ended December 31, 2025, the company reported a net profit of ₹1,563.89 lakh compared to ₹1,686.90 lakh in the corresponding previous period, with total income reaching ₹13,288.86 lakh.

Business Transformation and Revenue Composition

LKP Finance has successfully transitioned from its traditional NBFC operations to become a player in the digital and physical gifting sector. The company's revenue composition for the quarter reflects this strategic shift:

The company altered its Object Clause of the Memorandum of Association following member approval on November 28, 2025, and Registrar of Companies approval on December 8, 2025. It now operates in developing and managing platforms for gift cards, vouchers, loyalty programs, and related services.

Significant Financial Events

During Q3FY26, the company wrote back an outstanding loan liability of ₹2,122.40 lakh payable to Kingfisher Finvest India Limited, which had been appearing in financial statements for over twelve years. This write-back was recognized as "Other Income" based on management's assessment that the liability was no longer payable, though the matter remains pending before the Debt Recovery Appellate Tribunal (DRAT), Chennai.

NBFC License Surrender and Regulatory Compliance

The company has initiated the surrender process for its NBFC Certificate of Registration with the Reserve Bank of India, having submitted the application on October 29, 2025. The auditors noted that financial activity is no longer the principal business, and the Principal Business Criteria (50-50 test) prescribed for NBFCs has not been complied with during the year.

Capital Structure and Rights Issue

LKP Finance completed a rights issue on October 11, 2025, allotting 2,793,027 equity shares of face value ₹10 each at an issue price of ₹450 per share. The paid-up equity share capital increased to ₹1,536.17 lakh from ₹1,256.86 lakh in the previous year.

Consolidated Results and Associate Investment

The company prepared consolidated financial results for the first time, following its acquisition of a 20.94% equity stake in Muffinpay Payment Solutions Private Limited on December 12, 2025. The consolidated net profit for Q3FY26 stood at ₹591.02 lakh, with the associate contributing a share of profit of ₹0.55 lakh.

Auditor Observations

The statutory auditors issued a qualified opinion regarding the Kingfisher-related borrowings matter, noting uncertainty associated with pending litigation. They emphasized the company's business transformation in their "Emphasis of Matter" section, highlighting the shift from NBFC operations to gift voucher business.

LKP Finance Ltd has announced major corporate restructuring moves following its board meeting, with the stock delivering exceptional returns of 408% over the last 12 months. The Mumbai-based financial services company approved a generous 4:1 bonus share issue alongside a substantial increase in authorized share capital, reflecting strong investor confidence and market performance.

Outstanding Stock Performance and Market Response

The company has emerged as a multibagger stock, surging 408% over the last 12 months and gaining 116% in the past six months. This exceptional performance reflects strong investor interest and renewed confidence in financial sector stocks, particularly smaller finance companies.

Board Resolutions and Key Approvals

The board meeting resulted in several important decisions requiring shareholder approval. The directors approved the increase of authorized share capital from ₹30.00 crores to ₹110.00 crores, representing a substantial expansion of the company's capital structure. The board also sanctioned a postal ballot process for obtaining necessary shareholder approvals.

Bonus Issue Structure and Timeline

The approved bonus issue follows a 4:1 ratio, meaning eligible shareholders will receive four new fully paid-up equity shares of face value ₹10.00 each for every existing share held. The bonus shares will be funded through capitalization of the Securities Premium Account.

Capital Structure Transformation

The bonus issue will significantly alter LKP Finance's capital structure, with the paid-up capital expanding five-fold from current levels, improving stock liquidity and broadening the investor base.

Company Background and Market Position

LKP Finance operates as part of the Mumbai-based LKP Group, a diversified financial services group with interests spanning broking, capital markets, investment banking, financing and advisory services. The company functions as a non-banking financial company (NBFC), focusing on lending and investment activities, while benefiting from the broader group's presence in equity broking and market intermediation.

The company possesses adequate financial resources with a share premium balance of ₹1,26,59,35,122.00, comfortably covering the bonus implementation requirements. All proposed actions remain subject to shareholder approval through the upcoming postal ballot process, with regulatory compliance maintained under SEBI guidelines.