NICCO UCO Alliance Credit Limited Reports Higher Losses in Q3 FY26 Results
NICCO UCO Alliance Credit Limited reported increased losses for Q3 FY26, with net loss rising to ₹411.72 lakhs from ₹349.91 lakhs in Q3 FY25. Finance costs increased to ₹399.22 lakhs while total income declined significantly. The nine-month period showed similar trends with losses widening to ₹1195.98 lakhs. The company faces ongoing regulatory challenges including pending appeals against RBI's NBFC license cancellation and SFIO proceedings.
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NICCO UCO Alliance Credit Limited has announced its unaudited financial results for the quarter ended December 31, 2025, revealing continued financial challenges with widening losses across both quarterly and nine-month periods. The Kolkata-based non-banking financial company's Board of Directors approved the results at their meeting held on February 12, 2026.
Financial Performance Overview
The company's financial performance showed deterioration across key metrics during the reporting period. The following table summarizes the quarterly performance:
| Metric: | Q3 FY26 | Q3 FY25 | Change |
|---|---|---|---|
| Total Income: | ₹0.48 lakhs | ₹3.65 lakhs | -86.8% |
| Finance Costs: | ₹399.22 lakhs | ₹339.08 lakhs | +17.7% |
| Net Loss: | ₹411.72 lakhs | ₹349.91 lakhs | +17.7% |
| Earnings per Share: | -₹0.50 | -₹0.42 | -19.0% |
Nine-Month Performance Analysis
The nine-month period ending December 31, 2025, also reflected challenging operational conditions. Total income for the nine-month period declined to ₹2.18 lakhs from ₹5.62 lakhs in the corresponding period of the previous year. Finance costs increased substantially to ₹1146.11 lakhs from ₹983.51 lakhs, representing a significant burden on the company's financial position.
| Parameter: | Nine Months FY26 | Nine Months FY25 | Variance |
|---|---|---|---|
| Total Income: | ₹2.18 lakhs | ₹5.62 lakhs | -61.2% |
| Total Expenses: | ₹1198.16 lakhs | ₹1033.87 lakhs | +15.9% |
| Net Loss: | ₹1195.98 lakhs | ₹1028.25 lakhs | +16.3% |
Expense Structure and Cost Components
The company's expense structure remained heavily weighted toward finance costs, which constituted the largest component of total expenses. Employee benefit expenses remained relatively stable at ₹4.30 lakhs for the quarter compared to ₹4.33 lakhs in the previous year. Other expenses decreased to ₹8.50 lakhs from ₹9.97 lakhs year-on-year.
Regulatory and Legal Developments
The company continues to navigate several regulatory challenges that impact its operations. An appeal against the Reserve Bank of India's order regarding cancellation of the NBFC license remains pending before the Appellate Authority for Non-banking Financial Companies. Additionally, proceedings initiated by the Serious Fraud Investigation Office (SFIO) relating to accounting violations are pending before the Chief Metropolitan Magistrate's Court.
The company noted that confirmations of balances are not available from banks where accounts have turned non-performing assets (NPA). However, there were no pending investor complaints as of December 31, 2025.
Interest Management Strategy
A significant aspect of the company's financial management involves ongoing negotiations with consortium bankers and the International Finance Corporation Washington for one-time settlement of dues. The Board of Directors has decided to keep interest charges on dues to these institutions in abeyance with effect from April 1, 2015. This decision resulted in a cumulative reduction of loss by ₹2368 crores, including ₹324 crores for the current period. However, interest dues to Axis Bank, IndusInd Bank, and IFCI continue to be charged as they remain outside the purview of such negotiations.
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