Purple Finance Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing a remarkable turnaround in quarterly performance. The Board of Directors approved these results at their meeting held on January 21, 2026.

Quarterly Performance Shows Strong Recovery

The company achieved a significant milestone by reporting a net profit of ₹1.22 lakhs in Q3FY26, marking a dramatic reversal from the net loss of ₹183.15 lakhs recorded in Q3FY25. This turnaround represents a fundamental shift in the company's operational performance during the quarter.

Revenue Streams Drive Growth

The company's revenue performance was particularly strong across multiple segments. Interest income, the primary revenue driver, surged to ₹745.52 lakhs in Q3FY26 from ₹317.11 lakhs in Q3FY25, representing a substantial increase of 135.11%. Fees and commission income also demonstrated robust growth, rising to ₹92.70 lakhs from ₹33.50 lakhs year-on-year.

Net gain on fair value changes contributed significantly to revenue growth, reaching ₹457.54 lakhs in Q3FY26 compared to ₹20.87 lakhs in the corresponding quarter of the previous year. Sale of services revenue increased substantially to ₹41.32 lakhs from ₹5.22 lakhs in Q3FY25.

Nine-Month Performance and Capital Initiatives

For the nine-month period ended December 31, 2025, the company reported a net loss of ₹645.84 lakhs, which, while still negative, showed improvement compared to the ₹1,162.94 lakhs loss in the corresponding period of FY25. Revenue from operations for the nine-month period reached ₹3,065.19 lakhs, significantly higher than ₹847.09 lakhs in the previous year.

The company undertook significant capital raising activities during the period. It increased its authorized share capital from ₹60 crores to ₹70 crores following shareholder approval on November 27, 2025. Additionally, the company issued 1,00,00,000 equity share warrants at ₹39 per warrant, receiving ₹9.75 crores as the initial 25% payment on December 12, 2025.

Asset Quality and Business Operations

As of December 31, 2025, the company maintained total assets under management of ₹195.96 lakhs. The loan portfolio classification showed ₹191.64 lakhs as substandard assets and ₹15.20 lakhs as doubtful assets up to one year, both net of provisions. The gross NPA ratio stood at 1.28% of assets under management, while net NPA ratio was 1.06%.

During Q3FY26, the company transferred loans worth ₹21.54 lakhs under RBI's securitization guidelines. Of the total loan portfolio of ₹142.29 lakhs, approximately ₹52.38 lakhs are managed through co-lending and servicing arrangements with various partners.

Financial Position and Outlook

The company's paid-up equity share capital increased to ₹5,442.42 lakhs from ₹4,481.99 lakhs in the previous year, reflecting the capital expansion initiatives. Net worth stood at ₹11,828.05 lakhs with a debt-equity ratio of 0.80x as of December 31, 2025.

Earnings per share for Q3FY26 was ₹0.01, a significant improvement from the negative ₹0.42 in Q3FY25. For the nine-month period, EPS remained negative at ₹1.18, though better than the ₹3.17 loss per share in the corresponding period last year.

Purple Finance Limited has successfully completed the allotment of ₹25.00 crores worth of non-convertible debentures (NCDs) to two strategic investors on January 12, 2026. The Finance Committee of the Board of Directors approved this allotment through a circular resolution, marking a significant fundraising milestone for the company.

Allotment Details

The debenture allotment was structured across two investors with the following distribution:

Instrument Features and Terms

The NCDs are characterized as senior, secured, rated, listed, redeemable, transferable, and INR denominated instruments. Key features include:

Security and Repayment Structure

The debentures are secured by a comprehensive security framework designed to protect investor interests. The security structure includes a first ranking pari passu and continuing charge created in favor of the Debenture Trustee through an unattested deed of hypothecation over identified book debts and loan receivables of the company.

The principal repayment is structured across six installments during the 24-month tenure, with the final principal payment due on the maturity date. In case of payment default exceeding three months, the company will pay additional interest at 2.00% per annum over the base interest rate on outstanding principal amounts until the default is cured or debentures are fully redeemed.

Regulatory Compliance

This allotment was conducted in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had previously intimated the stock exchange about this proposed issuance on December 24, 2025, demonstrating adherence to regulatory disclosure requirements.

The successful completion of this ₹25.00 crore NCD allotment provides Purple Finance Limited with additional capital resources while offering investors a secured debt instrument with attractive monthly returns over a defined 24-month investment horizon.