Prism Finance Reports Rs 377 Lakh Profit, Auditors Flag Investment Concern
Prism Finance Limited posted a profit of Rs 377.00 lakh for Q1 FY2026, reversing a loss of Rs 428.21 lakh in the previous quarter. Total revenue reached Rs 524.51 lakh, driven by gains from derecognition of financial instruments and fair value changes. EPS improved to Rs 5.80. However, auditors expressed concern over a potentially overvalued investment in BVM Finance Pvt. Ltd., which the company is evaluating.
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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.
Historical Stock Returns for Prism Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -100.00% | 0.0% | 0.0% | -100.00% | -100.00% | -100.00% |
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