Prism Finance Reports Q2 FY26 Loss of Rs 55.99 Lakh Amid Market Volatility

Prism Finance Limited has reported a net loss of Rs 55.99 lakh for the quarter ended September 30, 2025, according to the company's latest financial results. This marks a significant shift from the profit of Rs 377.00 lakh recorded in the previous quarter.

Financial Performance

The company's total income for Q2 FY26 stood at Rs 43.95 lakh, a substantial decrease from Rs 524.51 lakh in the preceding quarter. The decline in income was primarily attributed to the absence of gains on fair value changes and reduced gains on derecognition of financial instruments.

Key financial highlights for Q2 FY26:

Particulars (in Rs lakh)	Q2 FY26	Q1 FY26	Q2 FY25
Total Income	43.95	524.51	222.34
Total Expenses	134.41	47.33	221.49
Profit/(Loss) Before Tax	(90.46)	477.17	0.85
Net Profit/(Loss)	(55.99)	377.00	21.66

Market Volatility Impact

The company's performance appears to have been significantly affected by market volatility, as evidenced by the net loss on fair value changes of Rs 109.92 lakh in the current quarter, compared to a gain of Rs 100.79 lakh in the previous quarter.

Auditor's Qualified Opinion

The company's auditors have expressed a qualified opinion in their limited review report. The basis for the qualification relates to an investment in unquoted shares of BVM Finance Pvt. Ltd., with a carrying value of Rs 100.00 lakh. The auditors noted that the investee company's net worth has turned negative and it is under Corporate Insolvency Resolution Process (CIRP). The auditors concluded that since Prism Finance has not recognized the effect of this in its Statement of Profit and Loss, the profit and investments may be overstated.

Management Response

In response to the auditor's qualification, the management stated that they are evaluating the matter further and will take appropriate action in the coming quarters.

Balance Sheet Position

As of September 30, 2025, Prism Finance reported:

Total Assets: Rs 2,684.96 lakh
Total Equity: Rs 2,533.64 lakh
Total Liabilities: Rs 151.32 lakh

The company's financial position remains stable despite the quarterly loss, with a strong equity base relative to its liabilities.

Segment Information

Prism Finance continues to operate solely in the Finance and Investment segment, as per the company's disclosure.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-100.00%	0.0%	-100.00%	-100.00%	-100.00%	-100.00%

Prism Finance Limited , a finance and investment company based in Ahmedabad, has reported a significant turnaround in its financial performance for the quarter ended June 30, 2025. The company posted a profit of Rs 377.00 lakh, marking a substantial improvement from the loss of Rs 428.21 lakh in the previous quarter.

Financial Highlights

Total Revenue: The company's total revenue from operations reached Rs 524.51 lakh, driven primarily by two key components:
- Net gain on derecognition of financial instruments: Rs 421.68 lakh
- Net gain on fair value changes: Rs 100.79 lakh
Earnings Per Share (EPS): The basic and diluted EPS improved to Rs 5.80, compared to negative Rs 6.59 in the previous quarter.
Expenses: Total expenses for the quarter stood at Rs 47.33 lakh, significantly lower than the previous quarter's Rs 631.73 lakh.

Performance Comparison

Particulars (in Rs lakh)	Q1 FY2026	Q4 FY2025	Q1 FY2025
Total Revenue	524.51	1.79	755.85
Total Expenses	47.33	631.73	142.54
Profit/(Loss)	377.00	(428.21)	454.33
EPS (in Rs)	5.80	(6.59)	6.99

Auditor's Qualification

The company's auditors, H K Shah & Co., have expressed a qualified opinion in their limited review report. The qualification pertains to an investment in unquoted shares of BVM Finance Pvt. Ltd., valued at Rs 100.00 lakh. The auditors noted that despite the investee company having a negative net worth, Prism Finance has not recognized any impairment in its financial statements.

According to the auditors, this lack of recognition means that the company's profits and investments are potentially overstated. The management of Prism Finance has stated that they are evaluating the matter further and will take appropriate action in the coming quarters.

Management Commentary

The company's board of directors, in their meeting held on August 14, 2025, reviewed and approved these unaudited financial results. They have authorized Ms. Rajkumari Udhwani, Director, to sign and submit the financial results to the BSE Limited as per regulatory requirements.

About Prism Finance Limited

Prism Finance Limited operates solely in the finance and investment segment. The company has a paid-up equity capital of Rs 650.03 lakh and is listed on the BSE with the stock code 531735. Its registered office is located in Ahmedabad, Gujarat.

Investors and stakeholders should note that while the company has shown a significant improvement in its quarterly performance, the auditor's qualification regarding the investment valuation warrants attention. The management's response and future actions regarding this matter will be crucial for a comprehensive assessment of the company's financial position.