Minolta Finance Reports Massive Rs 575.02 Crore Loss in Q2 FY26, Net Worth Eroded by 48.65%

Minolta Finance Limited, a non-banking financial company, has reported a significant net loss of Rs 575.02 crore for the quarter ended September 30, 2025 (Q2 FY26). This marks a stark contrast to the profit of Rs 1.32 crore recorded in the same quarter of the previous year.

Key Financial Highlights

Revenue: The company experienced negative revenue, with interest income falling to -Rs 3.61 crore, compared to Rs 23.30 crore in Q2 FY25.
Impairment Provisions: A substantial impairment provision of Rs 370.80 crore was made during the quarter.
Net Worth Erosion: The company's net worth saw a significant erosion of 48.65% during the quarter.

Factors Contributing to the Loss

The massive loss can be attributed to several factors:

Impairment Provisions: The company made substantial impairment provisions of Rs 370.80 crore, significantly impacting the bottom line.
Negative Interest Income: Minolta Finance reported a negative interest income of Rs 3.61 crore, indicating potential issues with its loan portfolio.
Interest Reversal: As highlighted by the auditors, Rs 2.74 crore of interest was reversed on impaired assets, leading to increased Expected Credit Loss (ECL) provisions and contributing to the negative revenue.

Financial Position

The company's financial position has weakened considerably:

Particulars	As of Sept 30, 2025	As of March 31, 2025
Total Assets	12,851.38	9,487.09
Total Liabilities	12,337.89	8,398.59
Equity Share Capital	999.96	999.96
Other Equity	-486.47	88.55

All figures in Rs crore

The negative other equity indicates a significant erosion of shareholder value.

Auditor's Observations

The auditors have highlighted the reversal of interest on impaired assets and the consequent increase in ECL provisions, which have contributed to the negative revenue for the quarter.

Conclusion

Minolta Finance Limited's Q2 FY26 results reveal a company grappling with significant financial difficulties. The massive loss, negative interest income, and substantial impairment provisions point to serious challenges in the company's loan portfolio and overall business model. The company may need to take significant steps to address its asset quality issues and improve its financial health.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+4.72%	+17.70%	-14.19%	+9.92%	-18.90%	-18.90%

Minolta Finance Limited , a Mumbai-based financial services company, has reported a significant loss for the quarter ended September 30, 2025, primarily due to the reversal of interest on impaired assets. The company's financial results, approved by its Board of Directors on November 12, 2025, reveal a challenging quarter marked by negative revenue and substantial erosion of net worth.

Key Financial Highlights

Negative Revenue: The company reported a negative revenue of Rs. 3.61 crore for the quarter, a stark contrast to the Rs. 205.31 crore revenue in the previous quarter.
Interest Reversal: Minolta Finance reversed interest of Rs. 2.74 crore on impaired assets, leading to an increase in Expected Credit Loss (ECL) provision.
Net Worth Erosion: The company's net worth eroded by Rs. 4.86 crore, representing 48.65% of its total net worth.
Quarterly Loss: The net loss for the quarter stood at Rs. 575.02 crore, compared to a profit of Rs. 14.65 crore in the previous quarter.

Financial Performance Overview

The following table summarizes Minolta Finance's key financial metrics for the quarter:

Particulars (Rs. in crore)	Q2 FY2026 (30.09.2025)	Q1 FY2026 (30.06.2025)	YoY Change
Revenue from Operations	(3.61)	205.31	-101.76%
Total Income	(3.61)	206.35	-101.75%
Total Expenses	631.51	206.58	+205.70%
Profit/(Loss) before tax	(635.11)	(0.23)	-276,035%
Net Profit/(Loss)	(575.02)	14.65	-4,025%

Additional Developments

Employee Stock Option Plan: The Board of Directors approved an Employee Stock Option Plan Scheme 2025, potentially aimed at retaining talent and aligning employee interests with the company's long-term goals.
Related Party Transactions: The Board reviewed related party transactions for the quarter, ensuring compliance with regulatory requirements.
Auditor's Review: The statutory auditors, M/s. JCR Co. LLP, issued a limited review report highlighting the interest reversal and net worth erosion but did not modify their opinion on the financial results.

Management Commentary

While the company did not provide specific management commentary in the available data, the significant loss and interest reversal suggest that Minolta Finance is grappling with asset quality issues. The approval of an employee stock option plan amid financial challenges may indicate the company's efforts to maintain employee morale and retention during this difficult period.

Outlook

The substantial quarterly loss and erosion of net worth present significant challenges for Minolta Finance. Investors and stakeholders will likely be looking for the company's plans to address asset quality issues, improve revenue, and strengthen its financial position in the coming quarters.

As the financial services sector navigates through various economic headwinds, Minolta Finance's performance in subsequent quarters will be crucial in determining its recovery trajectory and long-term sustainability.