Tokyo Finance Limited Q3FY26 Results: Net Profit Declines 48% YoY to ₹4.64 Lakhs
Tokyo Finance Limited reported Q3FY26 net profit of ₹4.64 lakhs, declining 48% from ₹8.95 lakhs in Q3FY25, despite 2% revenue growth to ₹21.25 lakhs. Rising operational costs, particularly 53% increase in employee expenses, pressured margins. Nine-month performance showed steeper decline with 60% drop in net profit to ₹10.98 lakhs from ₹27.35 lakhs previously, while revenue remained stable at ₹63.21 lakhs.

*this image is generated using AI for illustrative purposes only.
Tokyo Finance Limited announced its unaudited financial results for the third quarter of FY26, ending December 31, 2025, revealing a challenging period marked by declining profitability despite modest revenue growth. The Board of Directors approved these results during their meeting held on January 10, 2026.
Q3FY26 Financial Performance
The company's quarterly performance showed mixed results with revenue growth offset by rising operational costs. Tokyo Finance reported net profit of ₹4.64 lakhs for Q3FY26, marking a significant decline from the previous year.
| Financial Metric: | Q3FY26 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹21.25 lakhs | ₹20.82 lakhs | +2.07% |
| Total Income: | ₹21.25 lakhs | ₹21.02 lakhs | +1.09% |
| Total Expenses: | ₹16.61 lakhs | ₹12.07 lakhs | +37.61% |
| Profit Before Tax: | ₹4.64 lakhs | ₹8.95 lakhs | -48.16% |
| Net Profit: | ₹4.64 lakhs | ₹8.95 lakhs | -48.16% |
| Basic EPS: | ₹0.06 | ₹0.13 | -53.85% |
Expense Analysis and Cost Pressures
The quarter witnessed substantial increases in operational expenses, which significantly impacted profitability. Employee benefit expenses emerged as the primary cost driver, rising to ₹11.35 lakhs in Q3FY26 from ₹7.43 lakhs in Q3FY25, representing a 53% increase. Other expenditure also increased to ₹5.24 lakhs from ₹4.63 lakhs in the corresponding previous quarter.
Nine-Month Performance Overview
The nine-month period ending December 31, 2025, reflected similar challenges with more pronounced impact on profitability. Despite maintaining revenue levels, the company faced significant pressure on margins due to escalating costs.
| Nine-Month Metrics: | FY26 (9M) | FY25 (9M) | Change (%) |
|---|---|---|---|
| Revenue from Operations: | ₹63.21 lakhs | ₹62.28 lakhs | +1.49% |
| Total Expenses: | ₹52.23 lakhs | ₹35.13 lakhs | +48.69% |
| Net Profit: | ₹10.98 lakhs | ₹27.35 lakhs | -59.85% |
| Basic EPS: | ₹0.14 | ₹0.41 | -65.85% |
Employee benefit expenses for the nine-month period increased substantially to ₹34.09 lakhs from ₹22.80 lakhs in the previous year, while other expenditure rose to ₹17.97 lakhs from ₹12.31 lakhs.
Sequential Quarter Comparison
Comparing Q3FY26 with the preceding quarter (Q2FY26), Tokyo Finance showed improvement in profitability. Net profit increased from ₹3.10 lakhs in Q2FY26 to ₹4.64 lakhs in Q3FY26, while revenue remained relatively stable at ₹21.25 lakhs versus ₹21.37 lakhs in the previous quarter.
Capital Structure and Regulatory Compliance
The company maintained its paid-up equity share capital at ₹694.25 lakhs with a face value of ₹10 per share throughout the reporting periods. Tokyo Finance operates exclusively in financial activities as a single business segment. The financial results were reviewed by the Audit Committee and received board approval, with limited review conducted by UBG & Company, Chartered Accountants, ensuring compliance with regulatory requirements under SEBI listing obligations.
Historical Stock Returns for Tokyo Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.65% | +3.73% | +1.05% | -10.23% | -22.09% | +142.72% |




























