Centrum Capital Limited returns to H1 profit as finance costs fall

Centrum Capital Limited returned to a standalone profit of Rs 7.19 crore in H1 FY2027, compared with a Rs 48.85 crore loss in H1 FY2026, as finance costs fell 34% year on year to Rs 38.72 crore and total income rose to Rs 85.39 crore. The result contrasts with the group’s Rs 157 crore consolidated loss in Q2 FY2027.

How did Centrum Capital return to profit in H1 FY2027?

Centrum Capital reported standalone profit after tax of Rs 7.19 crore for the half year ended September 30, 2026, versus a loss of Rs 48.85 crore a year earlier. Profit before tax was Rs 7.91 crore, reversing a Rs 40.37 crore pre-tax loss in H1 FY2026, while total tax expense declined to Rs 72.33 lakh from Rs 8.48 crore. The H1 FY2027 result contained no exceptional item, whereas the preceding-year period included a Rs 1.36 crore exceptional loss on the sale of investment in Centrum Broking Limited equity shares.

The September quarter also remained profitable at the standalone level, with profit after tax of Rs 3.55 crore, against a Rs 16.14 crore loss in the quarter ended September 30, 2025. This was slightly below the Rs 3.64 crore earned in the June 2026 quarter. Profit before tax was Rs 3.72 crore in Q2 FY2027 and Rs 4.20 crore in Q1 FY2027, showing that both quarters of the half year were profitable before and after tax.

What caused Centrum Capital's finance costs to decline?

Centrum Capital’s standalone finance costs declined to Rs 38.72 crore in H1 FY2027 from Rs 59.02 crore in H1 FY2026, a reduction management described as 34% year on year and the principal contributor to the profit reversal. The company reported Rs 20.84 crore of finance costs in Q2 FY2027, compared with Rs 28.74 crore in Q2 FY2026, although costs rose from Rs 17.89 crore in the immediately preceding quarter.

The cash-flow statement records Rs 38.97 crore of finance costs in operating-profit adjustments for H1 FY2027, compared with Rs 58.42 crore a year earlier, and Rs 46.06 crore of finance-cost cash payments, against Rs 105.09 crore in H1 FY2026. Management said the group is focused on further optimising financing costs over the next 18 to 24 months through monetisation of Centrum Wealth and the Reserve Bank of India requisite dilution in Unity Small Finance Bank.

Which income lines changed at Centrum Capital?

Centrum Capital’s total standalone income increased 65% to Rs 85.39 crore in H1 FY2027 from Rs 51.67 crore in H1 FY2026. Revenue from operations rose to Rs 40.99 crore from Rs 22.50 crore, while other income increased to Rs 44.41 crore from Rs 29.17 crore. Fees and commission income accounted for Rs 27.06 crore of H1 operating revenue, up from Rs 19.83 crore in the prior-year period.

Sale of stock-in-trade contributed Rs 12.01 crore in H1 FY2027, where the comparable prior-year line was blank, while other operating revenue was unchanged at Rs 2 crore. Net fair-value changes moved to a loss of Rs 8.30 lakh from a gain of Rs 66.43 lakh. In Q2 FY2027, total income was Rs 43.99 crore, above Rs 33.71 crore in Q2 FY2026 and Rs 41.40 crore in Q1 FY2027.

What do the standalone expenses and balance sheet show?

Centrum Capital’s total standalone expenses fell to Rs 77.48 crore in H1 FY2027 from Rs 90.68 crore in H1 FY2026 despite purchases of stock-in-trade of Rs 12.01 crore. Employee-benefit expense increased to Rs 14.73 crore from Rs 14.06 crore, and other expenses declined to Rs 10.81 crore from Rs 16.21 crore. Impairment on financial instruments was nil in the income statement for H1 FY2027, compared with Rs 14.29 lakh a year earlier.

Standalone total assets stood at Rs 1,416.05 crore on September 30, 2026, up from Rs 1,358.53 crore on March 31, 2026. Non-current investments increased to Rs 801.56 crore from Rs 721.23 crore and loans increased to Rs 501.92 crore from Rs 394.94 crore, while cash and cash equivalents fell to Rs 7.84 crore from Rs 148.37 crore. Total equity increased to Rs 691.43 crore from Rs 683.20 crore, while total borrowings, current and non-current combined, rose to Rs 669.60 crore from Rs 620.83 crore.

Why does the standalone profit differ from the group result?

Centrum Capital’s standalone result includes the parent company and Centrum ESPS Trust, while its consolidated results include operating businesses whose segment outcomes remained loss-making. The group reported a consolidated loss of Rs 157 crore in Q2 FY2027, which management said was largely in line with the previous quarter. In the consolidated segment statement, banking business reported a pre-tax segment loss of Rs 115.03 crore in Q2 FY2027, compared with a Rs 37.72 crore profit in Q2 FY2026.

For H1 FY2027, the banking business recorded a segment loss before tax of Rs 227.56 crore, compared with a Rs 152.24 crore loss in H1 FY2026, even as its segment revenue increased to Rs 1,452.16 crore from Rs 1,298.92 crore. Wealth and asset management reported a H1 segment loss of Rs 27.29 crore, versus Rs 2.22 crore a year earlier, and retail broking recorded a Rs 11.81 crore loss, compared with Rs 9.10 crore. These segment figures explain why the parent’s Rs 7.19 crore standalone profit does not indicate a consolidated return to profitability.

Conclusion

Centrum Capital’s H1 FY2027 standalone turnaround reflects two measurable shifts: total income rose by 65% to Rs 85.39 crore and finance costs fell by 34% to Rs 38.72 crore. Those movements converted a Rs 48.85 crore standalone loss into Rs 7.19 crore of profit, although the group’s Q2 FY2027 consolidated loss of Rs 157 crore and the banking segment’s Rs 227.56 crore H1 loss remain material.

The next disclosed items to watch are management’s proposed monetisation of Centrum Wealth and the requisite dilution in Unity Small Finance Bank, which it says are intended to optimise financing costs over the next 18 to 24 months. Unity Small Finance Bank reported gross advances of Rs 13,240 crore, up 20% year on year, and deposits of Rs 13,192 crore, up more than 10% quarter on quarter, with a 21% current account savings account ratio.