Paragon Finance Limited, a prominent financial services company, has announced its unaudited financial results for the first quarter ended June 30, 2025, showcasing a significant improvement in profitability and operational performance.

Financial Highlights

• Total Income: ₹219.62 lakhs, up 39.80% from ₹157.06 lakhs in the previous quarter
• Net Profit: ₹139.73 lakhs, a substantial increase from a loss of ₹81.59 lakhs in the previous quarter
• Earnings Per Share (EPS): ₹3.29, compared to a loss of ₹1.92 per share in the previous quarter

Year-on-Year Comparison

While the company's total income for Q1 FY2026 decreased by 21.52% compared to ₹279.85 lakhs in the same quarter last year, Paragon Finance Limited managed to increase its net profit by 38.61% from ₹100.81 lakhs in Q1 FY2025.

Performance Analysis

The significant turnaround in profitability, despite a decrease in total income compared to the previous year, suggests that Paragon Finance Limited has successfully implemented cost-cutting measures and improved operational efficiency. The company's ability to generate a higher profit from lower revenue indicates effective management of expenses and potentially higher-margin business activities.

Regulatory Compliance

In compliance with Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Paragon Finance Limited has duly published its unaudited financial results for Q1 FY2026 in two newspapers: Financial Express (English) and Arthik Lipi (Bengali).

Conclusion

Paragon Finance Limited's Q1 FY2026 results demonstrate a strong recovery and improved financial health. The significant increase in profitability, despite lower revenues compared to the previous year, indicates effective cost management and operational improvements. The company's ability to adapt and grow will be crucial for maintaining its competitive edge in the market.

Paragon Finance Limited , a non-banking financial company (NBFC), has announced strong financial results for the first quarter, demonstrating significant growth and recovery from the previous quarter.

Financial Highlights

• Total income from operations increased by 39.8% year-over-year to ₹2.20 crore
• Net profit surged 38.6% to ₹1.40 crore
• Earnings per share improved to ₹3.29 from ₹2.37 in the same quarter last year
• Total comprehensive income stood at ₹1.86 crore, despite a 14.1% year-over-year decline

Revenue Breakdown

The company's revenue growth was primarily driven by increases in other income and net gain on fair value changes. However, interest income saw a decline of 17.1% year-over-year to ₹0.29 crore.

Expenses and Profitability

Total expenses rose by 32% to ₹0.71 crore, with notable increases in depreciation and other expenses. Despite this increase, the company managed to improve its profitability significantly.

Recovery from Previous Quarter

Paragon Finance Limited showed a remarkable turnaround from the previous quarter, where it had reported a net loss of ₹0.82 crore. This quarter's net profit of ₹1.40 crore represents a strong recovery and positive momentum for the company.

Asset Quality Improvement

The NBFC continued to reverse impairment provisions, indicating potential improvements in asset quality. This could be a positive sign for the company's financial health and risk management practices.

Management Commentary

The financial results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting. Sanjay Kumar Gupta, Whole Time Director & Company Secretary, signed off on the results, which were prepared in accordance with Indian Accounting Standards (Ind AS).

Conclusion

Paragon Finance Limited's quarterly results demonstrate a robust performance with significant year-over-year growth in revenue and profitability. The company's ability to reverse its previous quarter's losses and show strong growth in various income streams indicates a positive outlook. However, investors should note the decline in interest income and monitor how the company manages its expenses and asset quality in the coming quarters.