Williamson Financial Services Reports Q3FY26 Loss Amid Going Concern Challenges
Williamson Financial Services Limited reported deteriorating financial results for Q3FY26 with a net loss of Rs. 1,611 thousand and nine-month losses of Rs. 47,745 thousand. The company faces severe challenges including fully eroded net worth, qualified auditor opinion citing going concern issues, unrecognized interest expenses totaling Rs. 2,63,640 thousand for nine months, and a major arbitration award liability of Rs. 50,89,591 thousand that has been challenged in Delhi High Court. The auditors highlighted multiple compliance failures including negative Net Owned Funds violating RBI requirements.
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Williamson Financial Services Limited has released its unaudited financial results for the quarter and nine months ended December 31, 2025, revealing significant financial challenges that have prompted auditors to issue a qualified opinion with going concern warnings.
Financial Performance Overview
The company's financial performance deteriorated substantially during the reporting period. For the quarter ended December 31, 2025, Williamson Financial Services recorded a net loss of Rs. 1,611 thousand, compared to a loss of Rs. 697 thousand in the corresponding quarter of the previous year.
| Performance Metric: | Q3 FY26 | Q3 FY25 | Nine Months FY26 | Nine Months FY25 |
|---|---|---|---|---|
| Total Income: | Rs. 0 thousand | Rs. 24 thousand | Rs. 1,46,369 thousand | Rs. 9,542 thousand |
| Total Expenses: | Rs. 1,611 thousand | Rs. 721 thousand | Rs. 1,93,335 thousand | Rs. 3,302 thousand |
| Net Loss/Profit: | Rs. (1,611) thousand | Rs. (697) thousand | Rs. (47,745) thousand | Rs. 6,240 thousand |
| Earnings Per Share: | Rs. (0.19) | Rs. (0.08) | Rs. (5.71) | Rs. 0.75 |
The nine-month performance showed an even more dramatic shift, with the company reporting a net loss of Rs. 47,745 thousand for the nine months ended December 31, 2025, compared to a profit of Rs. 6,240 thousand in the corresponding period of the previous year.
Auditor Concerns and Qualified Opinion
V. Singhi & Associates, the company's statutory auditors, issued a qualified conclusion highlighting several critical issues. The most significant concern relates to the company's ability to continue as a going concern, as the net worth has been fully eroded as of December 31, 2025.
Key Audit Qualifications:
- Going Concern Issues: Material uncertainty exists regarding the company's ability to continue operations
- Unrecognized Interest Expenses: Rs. 88,146 thousand for the quarter and Rs. 2,63,640 thousand for nine months on inter-corporate borrowings remain unrecognized
- Inadequate Provisions: Insufficient provision against doubtful loans and advances of Rs. 14,68,147 thousand with accrued interest of Rs. 1,81,297 thousand
- Regulatory Non-compliance: Negative Net Owned Funds (NOF) of Rs. (21,19,420.56) thousand, violating RBI requirements
Major Legal and Financial Challenges
The company faces significant legal proceedings stemming from loan defaults. An International Chamber of Commerce arbitration award dated September 29, 2025, has imposed a joint liability of Rs. 50,89,591 thousand on Williamson Financial Services and seven other respondents due to defaults on loans from InCred Financial Services Limited.
| Legal Matter: | Details |
|---|---|
| Arbitration Award Amount: | Rs. 50,89,591 thousand |
| Additional Expenses: | Rs. 2,023 thousand |
| Court Challenge Filed: | February 5, 2026 in Delhi High Court |
| Legal Basis: | Section 34 of Arbitration Act |
The company has challenged this award in the Delhi High Court and has not recognized any liability pending the final disposal of the case.
Settlement Agreements and Asset Disposals
Williamson Financial Services has entered into multiple settlement agreements to resolve outstanding debts. The company reached a settlement with Aditya Birla Finance Ltd for Rs. 2,50,000 thousand, which has been paid. Additionally, settlement agreements involving group companies include arrangements for Rs. 4,96,700 thousand with proceeds from Neemrana Land sales, though these transactions remain incomplete.
Regulatory and Compliance Updates
The company noted the implementation of new Labour Codes effective November 21, 2025, which may have incremental financial impacts. The management is currently evaluating these changes, with any effects to be reflected in the annual financial statements for the year ending March 31, 2026.
Despite the fully eroded net worth, the management has prepared the accounts on a going concern basis, expressing commitment to the company's revival and continuity process. However, the auditors have emphasized that this assumption lacks adequate support given the current financial position and regulatory non-compliance.
Historical Stock Returns for Williamson Financial Services
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -4.85% | -18.21% | -27.68% | +7.51% | -35.00% | +112.04% |
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