TCI Finance Limited has announced its unaudited standalone financial results for the quarter ended December 31, 2025, reporting a significant net loss of ₹109.31 lakhs compared to ₹23.11 lakhs loss in the corresponding quarter of the previous year. The board meeting held on February 10, 2026, approved these results in accordance with Regulation 33 of SEBI (LODR) Regulations, 2015.

Financial Performance Overview

The company's financial performance deteriorated significantly during Q3FY26, with total comprehensive loss reaching ₹125.75 lakhs against ₹361.52 lakhs loss in Q3FY25. The company reported zero revenue from operations, relying solely on other income of ₹0.03 lakhs.

Nine-Month Performance

For the nine months ended December 31, 2025, TCI Finance reported a net loss of ₹188.85 lakhs compared to ₹94.91 lakhs loss in the corresponding period of the previous year. The total comprehensive loss for nine months stood at ₹106.38 lakhs.

Expense Analysis

The company's total expenses for Q3FY26 increased to ₹109.34 lakhs from ₹27.00 lakhs in Q3FY25. Finance costs emerged as a significant burden at ₹80.54 lakhs, while employee benefit expenses stood at ₹17.92 lakhs and other expenses at ₹10.88 lakhs.

RBI Deregistration Notice and Legal Proceedings

TCI Finance faces regulatory challenges as it received a notice from the Reserve Bank of India directing surrender of its Certificate of Registration for voluntary deregistration as an NBFC due to non-maintenance of minimum Net Owned Funds. The company has filed a writ petition before the Hon'ble High Court of Telangana, which passed an interim order on July 7, 2025, directing RBI not to take coercive action. The matter is scheduled for final hearing on January 28, 2026.

Corporate Guarantee and Investment Issues

The company continues to face substantial exposures from corporate guarantees given to lenders of Amrit Jal Ventures Private Limited and its subsidiaries, aggregating to ₹25,619.80 lakhs. Certain lenders have invoked guarantees and raised claims of ₹17,820.89 lakhs, against which the company has made a provision of ₹7,798.91 lakhs. Additionally, the company has written off investments in Gati Limited shares totaling ₹1,704.66 lakhs due to prolonged legal proceedings and uncertainty regarding recoverability.

The statutory auditors have qualified their opinion regarding these matters and emphasized concerns about the company's going concern status. The company maintains that management is exploring various alternatives and new areas to venture into for revival.

TCI Finance shares remained locked at the 5% lower circuit limit during Monday's trading session on January 19, falling to ₹26.95 per share. This marked the sixth consecutive session where the stock hit its lower circuit, as investors appeared to book profits following a sustained rally in recent weeks.

Remarkable Rally Triggers Circuit Limit Adjustments

The NBFC stock began its sharp upward trajectory in mid-December and continued rising until January 8. The intensity of this surge prompted exchanges to progressively reduce the stock's maximum circuit limit to manage volatility.

According to NSE data, the stock touched the 20% upper circuit limit on December 17, followed by another 20% gain in the subsequent session. This prompted exchanges to first reduce the circuit limit to 10% and then to 5%.

Exceptional Performance Metrics

Despite the recent correction, TCI Finance has delivered outstanding returns across multiple timeframes. The rally continued with sustained momentum, resulting in a 227% surge in just 16 trading sessions up to January 8, with the stock moving from ₹11.20 to ₹36.63.

While no fundamental factor explains the stellar rise, strong investor interest, evidenced by high trading volumes, helped the stock emerge as one of the best performers in recent months despite broader market volatility.

Retail Investors Drive Ownership Structure

The sharp spike in shares has largely benefited retail shareholders, who owned a majority 75.3% stake in the company at the end of the September quarter, according to Trendlyne shareholding data.

Over 21,400 retail shareholders with capital of up to ₹2 lakh held the largest portion of the company. The promoters, including Dhruv Agarwal, Giri Roadlines, and Commercial Trading Pvt. Ltd., own a 24.7% stake.

About the Company

TCI Finance operates as a non-banking financial services company registered with the Reserve Bank of India (RBI). The company's business model focuses on:

• Loans against securities
• Commercial vehicle financing
• Other NBFC services under RBI regulations

The recent trading pattern reflects typical profit-booking behavior after an extraordinary rally, with the stock's performance highlighting the potential volatility in small-cap investments.