Sainik Finance & Industries Limited announced its unaudited financial results for the quarter ended December 31, 2025, showing mixed performance with revenue growth but declining profitability compared to the previous year. The company's Board of Directors approved these results during their meeting held on February 12, 2026.

Financial Performance Overview

The company reported a net profit of Rs 123.51 lakhs for Q3 FY26, representing a decrease from Rs 140.29 lakhs achieved in the corresponding quarter of the previous fiscal year. This decline of 11.96% reflects the impact of higher operational expenses during the quarter.

Revenue and Income Analysis

Interest income, which constitutes the company's primary revenue source, demonstrated strong growth of 12.40% year-on-year, increasing from Rs 392.56 lakhs in Q3 FY25 to Rs 441.21 lakhs in Q3 FY26. The company did not report any other income during the current quarter, compared to Rs 5.57 lakhs in the previous year's corresponding period.

Expense Structure

The company's expense profile showed significant increases across key categories. Finance costs rose substantially to Rs 285.76 lakhs from Rs 231.45 lakhs in the previous year, marking a 23.49% increase. Employee benefits expenses also increased to Rs 26.50 lakhs compared to Rs 21.48 lakhs in Q3 FY25.

Nine-Month Performance

For the nine-month period ended December 31, 2025, the company achieved a net profit of Rs 291.05 lakhs compared to Rs 350.57 lakhs in the corresponding period of the previous year. Interest income for the nine-month period reached Rs 1,212.15 lakhs, up from Rs 1,141.53 lakhs in the previous year.

Earnings Per Share and Capital Structure

The company's basic and diluted earnings per share for Q3 FY26 stood at Rs 1.14, down from Rs 1.29 in the previous year's quarter. The paid-up equity share capital remained unchanged at Rs 1,088.00 lakhs, with each share having a face value of Rs 10.

Business Operations and Compliance

Sainik Finance & Industries operates primarily in financing activities, with all operations conducted within India. The company noted that there are no separate reportable segments as per Indian Accounting Standard 108 on Operating Segments. The financial results were reviewed by the Audit Committee and received limited review from statutory auditors Kumra Bhatia & Co., as required under SEBI regulations.

Sainik Finance & Industries Limited (SFIL) has announced its unaudited financial results for the quarter ended September 30, 2025, showcasing growth in revenue but a decline in profitability.

Financial Highlights

SFIL reported mixed results in its quarterly performance:

The company's revenue from operations grew by 6.01% year-over-year to Rs. 408.95 lakhs in Q2 FY2026, up from Rs. 385.76 lakhs in the same quarter of the previous fiscal year. However, the profit after tax (PAT) decreased to Rs. 72.98 lakhs, compared to Rs. 127.51 lakhs in Q2 FY2025, representing a 42.77% decline.

Balance Sheet Strength

SFIL's balance sheet showed growth:

• Total assets increased to Rs. 16,822.42 lakhs as of September 30, 2025, up from Rs. 14,295.60 lakhs in the previous year, marking a 17.68% growth.
• Loans, a key component of the company's assets, rose to Rs. 15,451.72 lakhs from Rs. 12,539.89 lakhs, indicating a 23.22% increase.
• Borrowings also saw an uptick, reaching Rs. 11,307.46 lakhs compared to Rs. 9,231.07 lakhs in the previous year.

Management Commentary

The Board of Directors, in their meeting held on November 14, 2025, reviewed and approved these unaudited financial results. The company's main business continues to be financing activities, with all operations carried out within India.

Auditor's Review

M/s. Kumra Bhatia & Co., the statutory auditors, conducted a limited review of the financial results for the quarter ended September 30, 2025. They found no material misstatements in the financial information prepared in accordance with applicable accounting standards.

Key Observations

• While SFIL has shown revenue growth and asset expansion, there has been a significant decrease in profitability.
• The company's increased loan portfolio suggests a focus on expanding its core financing business.
• The divergence between revenue growth and profit decline may warrant attention from investors and analysts.

Stakeholders may closely monitor how SFIL manages its growth and profitability in the coming quarters, considering the current economic landscape and the competitive nature of the financial services sector.