NPR Finance Limited has announced its unaudited financial results for the third quarter of fiscal year 2026, ending December 31, 2025. The company's board of directors approved these results during a meeting held on February 12, 2026, in accordance with Regulation 33 of SEBI Listing Regulations.

Financial Performance Overview

The quarter witnessed a significant decline in the company's profitability metrics. Net profit after tax dropped substantially to ₹25.67 lakhs in Q3FY26, marking a 51.2% decrease from ₹52.58 lakhs reported in the corresponding quarter of the previous year. This decline reflects challenging operational conditions during the reporting period.

Revenue Composition and Analysis

The company's revenue structure remained diversified across multiple income streams. Interest income, the primary revenue source, declined to ₹103.51 lakhs from ₹116.50 lakhs in the previous year quarter. Recovery from bad debts decreased significantly to ₹5.72 lakhs compared to ₹8.79 lakhs in Q3FY25. Sales of shares and securities increased to ₹35.72 lakhs from ₹22.11 lakhs, providing some offset to the declining interest income.

Nine-Month Performance Trends

The nine-month period ending December 31, 2025, showed even more pronounced challenges. Net profit declined by 57.5% to ₹28.51 lakhs compared to ₹67.08 lakhs in the corresponding period of the previous year. Total revenue from operations fell 22.5% to ₹404.49 lakhs from ₹522.10 lakhs.

Expense Management and Cost Structure

Total expenses for Q3FY26 decreased to ₹121.01 lakhs from ₹141.26 lakhs in the previous year quarter. Employee benefit expenses declined to ₹57.06 lakhs from ₹75.38 lakhs, indicating cost optimization measures. Finance costs dropped significantly to ₹0.82 lakhs from ₹8.52 lakhs, reflecting improved debt management. However, other expenses decreased to ₹22.38 lakhs from ₹31.32 lakhs in the corresponding quarter.

Segment Performance

The company operates primarily in financing activities, which generated the entire segment revenue of ₹146.39 lakhs for Q3FY26. Segment results before tax and interest showed a profit of ₹26.20 lakhs compared to ₹17.05 lakhs in the previous year quarter. The real estate segment remained inactive during the reporting period with no revenue generation.

Balance Sheet Position

The company maintained a stable financial position with paid-up equity share capital of ₹598.96 lakhs and other equity of ₹4,433.34 lakhs as of December 31, 2025. Total segment assets stood at ₹5,234.19 lakhs, while segment liabilities were ₹196.19 lakhs, indicating a strong balance sheet structure despite operational challenges.

NPR Finance Ltd. , a Kolkata-based non-banking financial company (NBFC), reported total income of ₹12.55 crore for the quarter, compared to ₹182.66 crore in the same quarter last year, marking a significant 93.13% decline. Despite the sharp drop in revenue, the company managed to remain profitable, with net profit standing at ₹14.42 crore versus ₹22.48 crore in the previous year.

Key Financial Highlights

• Total income declined 93.13% year-over-year to ₹12.55 crore
• Net profit decreased 35.85% to ₹14.42 crore
• Earnings per share fell to ₹0.24 from ₹0.38
• Improved from a loss of ₹8.80 crore in the previous quarter

The substantial decline in revenue suggests potential challenges in NPR Finance's core lending business. However, the company appears to have implemented effective cost management measures to maintain profitability despite the revenue headwinds.

Notably, NPR Finance improved its performance compared to the previous quarter, swinging from a loss of ₹8.80 crore to a profit of ₹14.42 crore. This indicates the company's efforts to optimize operations and manage expenses are yielding results.

Business Segments and Outlook

NPR Finance operates primarily in financing activities, including group loans, personal loans, and inter-corporate deposits. The company also has interests in the real estate sector.

In its latest corporate filings, NPR Finance stated it is "looking forward to follow a steady and cautious approach in expanding its financing activities in near future." This suggests the company is taking a measured approach to growth given the current economic environment.

The sharp decline in revenue may prompt NPR Finance to explore new avenues for business expansion. The company mentioned it "is desirous to pool its resources in expanding its NBFC activities on a larger scale" which could help boost its finance division going forward.

Corporate Governance Updates

At its recent Annual General Meeting, NPR Finance shareholders approved the following:

• Re-appointment of Mr. Ashok Dhirajlal Kanakia as an Independent Director for another five-year term
• Appointment of Mr. Ashok Kumar Singhania as an Independent Director for a five-year term

These board changes aim to strengthen NPR Finance's corporate governance and bring in additional expertise as the company navigates the current challenging business environment.

While NPR Finance faces headwinds in terms of revenue growth, its ability to remain profitable and improve quarter-over-quarter performance demonstrates resilience. The company's focus on cautious expansion and cost management will be key factors to watch in the coming quarters as it works to revitalize growth in its core lending business.