Banas Finance September profit rises to Rs 2.53124 crore

Banas Finance Limited reported net profit of Rs 2.53124 crore for the quarter ended 30 September 2026, up from Rs 2.22673 crore a year earlier, despite total income falling to Rs 6.25231 crore from Rs 12.16594 crore. Total expenses declined to Rs 3.72107 crore, including a Rs 1.08041 crore expected-credit-loss reversal.

What did Banas Finance report for the September 2026 quarter?

Banas Finance reported profit before tax of Rs 2.53124 crore for the September 2026 quarter, compared with Rs 2.32822 crore in the September 2025 quarter. Net profit increased by Rs 30.451 lakh to Rs 2.53124 crore because the latest quarter had no tax expense, while the year-earlier quarter included tax of Rs 10.15 lakh.

Total income was Rs 6.25231 crore, down Rs 5.91363 crore from Rs 12.16594 crore a year earlier, but up from Rs 2.99413 crore in the June 2026 quarter. Basic and diluted earnings per share were Rs 0.489, compared with Rs 0.249 in September 2025 and Rs 0.320 in June 2026. The company reported no exceptional items in any of the three quarters.

Why did Banas Finance profit increase despite lower income?

Banas Finance increased profit before tax because total expenses fell by Rs 6.11664 crore, slightly more than the Rs 5.91363 crore decline in total income. Purchases of shares and securities fell to Rs 3.57611 crore from Rs 14.14764 crore, while total expenses also included a negative expected-credit-loss provision line of Rs 1.08041 crore.

The negative expected-credit-loss line represented a reversal that reduced reported expenses, although it was smaller than the Rs 1.55620 crore reversal in September 2025. Changes in inventories of shares and securities were an expense of Rs 29.555 lakh in the latest quarter, compared with a negative Rs 3.77135 crore in the prior-year quarter. These trading-cost movements materially affected the year-on-year comparison.

Employee benefit expense rose to Rs 76.154 lakh from Rs 71.011 lakh, while other expenditure declined to Rs 16.529 lakh from Rs 28.191 lakh. Finance cost was nil, against Rs 19,800 a year earlier, and depreciation was Rs 29,900 in both quarters. The expense reduction was therefore concentrated in securities purchases and inventory-related movements rather than staff or depreciation costs.

Which Banas Finance income lines changed during the quarter?

Banas Finance’s revenue from operations fell to Rs 6.15924 crore from Rs 12.01211 crore, led by a decline in sale of shares and securities to Rs 3.88669 crore from Rs 9.74607 crore. Income or loss from futures and options was Rs 1.10897 crore, close to Rs 1.11807 crore in the comparable quarter.

Interest income from loans declined to Rs 34.16 lakh from Rs 36.035 lakh, while interest income from securities rose to Rs 70.742 lakh from Rs 63.406 lakh. Interest on bank deposits fell to Rs 11.632 lakh from Rs 13.138 lakh. Dividend income was Rs 4.586 lakh, down from Rs 15.382 lakh, while net gain on sale of investments was Rs 4.72 lakh against nil a year earlier.

Banas Finance reported finance-business income of Rs 6.15924 crore and finance-segment profit before tax and interest of Rs 2.43817 crore for the September quarter. The filing states that the company currently operates only in finance activity. Commodity trading had been a reportable segment in the previous financial year, but it recorded no income in either the September 2026 or September 2025 quarters.

How did Banas Finance perform in the first half?

Banas Finance reported total income of Rs 9.24644 crore for the half year ended 30 September 2026, compared with Rs 22.93168 crore in the year-earlier half. Profit before tax nevertheless increased to Rs 5.39770 crore from Rs 3.01754 crore, and net profit rose to Rs 5.39770 crore from Rs 2.91604 crore.

The first-half result included a Rs 2.32858 crore expected-credit-loss reversal, compared with a Rs 4.96055 crore reversal in the prior-year half. Bad-debt expense was nil in the latest half, compared with Rs 4.53247 crore a year earlier. The prior-year half also had Rs 10.15 lakh of tax expense, whereas Banas Finance reported none for the half ended September 2026.

Net cash from operating activities was Rs 2.04105 crore for the latest half, compared with an outflow of Rs 2.57440 crore in the prior-year period. Net cash from investing activities was Rs 5.59996 crore, against an outflow of Rs 31.368 lakh a year earlier. Cash and cash equivalents consequently closed at Rs 10.19197 crore, up from Rs 2.55123 crore at 31 March 2026.

What changed on Banas Finance’s balance sheet?

Banas Finance’s total assets rose to Rs 170.07405 crore at 30 September 2026 from Rs 136.16614 crore at 31 March 2026. Investments increased to Rs 124.95627 crore from Rs 97.64680 crore, while loans at amortised cost increased to Rs 4.79125 crore from Rs 4.17851 crore.

Total financial assets reached Rs 154.55178 crore, compared with Rs 120.85154 crore at the March year-end. Bank balances other than cash and cash equivalents declined to Rs 2.17 crore from Rs 6.04212 crore, while other financial assets increased to Rs 12.44228 crore from Rs 10.43288 crore.

Total equity was Rs 169.25163 crore at 30 September 2026, compared with Rs 135.53011 crore at 31 March 2026. Equity share capital was unchanged at Rs 89.57767 crore, while other equity rose to Rs 79.67396 crore from Rs 45.95243 crore. The company reported total liabilities of Rs 82.24 lakh, compared with Rs 63.603 lakh at the previous year-end.

What did Banas Finance disclose about accounting and review?

Banas Finance said it prepared the unaudited standalone results under Indian Accounting Standards, known as Ind AS, and its board approved them on 5 November 2026. The company said it had changed the classification of certain investments from fair value through profit or loss to fair value through other comprehensive income during the last year of financial year 2025-26.

The filing attributes the classification change to a revised business-model assessment and management’s intention, in compliance with Ind AS 109. Banas Finance said it regrouped or reclassified September 2025 comparative figures to reflect the revised classification. It also reported zero investor complaints opened, received, resolved or pending in the quarter ended 30 September 2026.

Independent auditor A K Kocchar & Associates reviewed the standalone statement under the Standard on Review Engagement 2410. The auditor said nothing had come to its attention that caused it to believe the statement had not made required disclosures or contained a material misstatement. The consolidated review also referred to Tilak Ventures Limited as an associate whose management-certified interim results were considered and described as not material to the group.

Conclusion

Banas Finance’s September-quarter profit increase came alongside a sharp fall in income, principally from lower sale of shares and securities. The decline in reported costs exceeded the reduction in income, leaving profit before tax at Rs 2.53124 crore. The absence of tax expense also meant net profit rose faster than pre-tax profit from the September 2025 quarter.

The next reported outcome will indicate whether finance activity, which generated Rs 6.15924 crore of quarterly revenue, can recover from the prior-year level while securities-trading income remains lower. The filing also leaves the recurrence of expected-credit-loss reversals and the continuing effect of the investment classification change as items to monitor in subsequent results.