Centrum Capital Q2 loss widens to Rs 157 crore as bank loss grows

Centrum Capital Limited reported a consolidated net loss of Rs 157.12 crore for the quarter ended September 30, 2026, against a Rs 8.50 crore loss a year earlier, as its banking business recorded a Rs 115.03 crore pre-tax loss. The Board approved the unaudited consolidated results on November 13, 2026.

Why did Centrum Capital's Q2 loss widen?

Centrum Capital's consolidated loss widened to Rs 157.12 crore in the September 2026 quarter from Rs 8.50 crore in the September 2025 quarter, and from Rs 148.80 crore in the June 2026 quarter. Loss before tax was Rs 161.08 crore, compared with Rs 31.77 crore a year earlier, while the tax line was a Rs 3.97 crore credit against a Rs 23.27 crore credit in the prior-year quarter.

The main change in the year-on-year income comparison was other income, which fell to Rs 43.83 crore from Rs 275.50 crore. Total income consequently declined to Rs 917.57 crore from Rs 1,098.44 crore, even though revenue from operations increased; total expenses declined to Rs 1,078.66 crore from Rs 1,130.22 crore but remained above total income.

The unaudited results cover Centrum Capital, 11 subsidiary companies and one associate. Sharp & Tannan issued an unmodified review conclusion on the consolidated results dated November 13, 2026; the auditor stated that a review provides less assurance than an audit and did not express an audit opinion.

How did Centrum Capital's banking business affect the result?

Centrum Capital's banking business reported a Rs 115.03 crore pre-tax loss in the September 2026 quarter, compared with a Rs 37.72 crore pre-tax profit in the September 2025 quarter. The loss was also wider than Rs 112.53 crore in the June 2026 quarter, making banking the largest reported loss-making operating segment.

Banking revenue rose to Rs 705.18 crore from Rs 639.86 crore a year earlier, although it declined from Rs 746.98 crore in the preceding quarter. At September 30, 2026, banking segment assets were Rs 20,500.50 crore, segment liabilities were Rs 19,173.57 crore and capital employed was Rs 1,326.92 crore.

Before net interest expense and unallocated income or expenditure, the aggregate segment result was a Rs 101.99 crore loss in the September 2026 quarter. The reconciliation then included Rs 62.03 crore of net interest expense and Rs 2.93 crore of net unallocated income, producing the consolidated pre-tax loss of Rs 161.08 crore.

Which income and expense lines changed in Q2?

Centrum Capital's revenue from operations increased to Rs 873.75 crore in the September 2026 quarter from Rs 822.94 crore a year earlier. Fees and commission income increased to Rs 97.03 crore from Rs 94.31 crore, sale of stock-in-trade rose to Rs 54.43 crore from Rs 25.57 crore, and fair-value changes produced a Rs 10.02 crore gain after a Rs 9.95 crore loss a year earlier.

Interest income was broadly unchanged at Rs 680.95 crore, compared with Rs 683.87 crore in the September 2025 quarter. Other operating revenue was Rs 31.31 crore, against Rs 29.13 crore a year earlier and Rs 83.28 crore in the June 2026 quarter, contributing to the sequential decline in revenue from operations from Rs 911.98 crore.

Finance costs fell to Rs 403.23 crore from Rs 458.99 crore and impairment on financial instruments declined to Rs 104.73 crore from Rs 193.33 crore. Employee benefits expense was Rs 199.46 crore versus Rs 206.52 crore, while depreciation and amortisation increased to Rs 40.70 crore from Rs 23.93 crore and other expenses rose to Rs 276.15 crore from Rs 230.14 crore.

How did Centrum Capital's other businesses perform?

Centrum Capital's institutional business recorded a Rs 10.48 crore pre-tax loss in the September 2026 quarter, compared with a Rs 4.43 crore loss a year earlier, despite revenue rising to Rs 32.05 crore from Rs 29.12 crore. Wealth and asset management revenue fell to Rs 48.34 crore from Rs 57.85 crore, while its pre-tax loss widened to Rs 15.66 crore from Rs 1.16 crore.

Retail broking revenue rose to Rs 5.47 crore from Rs 5.09 crore, but its pre-tax loss increased to Rs 6.26 crore from Rs 5.45 crore. The housing finance segment, which had reported Rs 56.87 crore of revenue and a Rs 4.83 crore pre-tax profit in the September 2025 quarter, had no reported revenue or segment result in the September 2026 quarter.

Unallocated revenue increased to Rs 120.49 crore from Rs 72.24 crore, and the unallocated segment result was a Rs 56.47 crore pre-tax profit compared with Rs 7.73 crore a year earlier. For the half year ended September 30, 2026, banking recorded a Rs 227.56 crore pre-tax loss versus Rs 152.24 crore in the corresponding prior-year period, while the consolidated net loss widened to Rs 305.92 crore from Rs 115.47 crore.

What changed in Centrum Capital's balance sheet and funding?

Centrum Capital reported consolidated assets of Rs 22,426.81 crore at September 30, 2026, compared with Rs 21,482.67 crore at March 31, 2026. Current loans increased to Rs 6,767.23 crore from Rs 4,579.86 crore, while non-current loans declined to Rs 7,433.96 crore from Rs 8,537.17 crore; cash and cash equivalents were Rs 992.76 crore, compared with Rs 987.21 crore.

Equity attributable to owners was Rs 147.90 crore at September 30, down from Rs 311.66 crore at March 31. Non-current borrowings rose to Rs 9,771.56 crore from Rs 6,163.67 crore, while current borrowings fell to Rs 6,774.94 crore from Rs 9,593.83 crore; financing activities generated Rs 236.54 crore of net cash in the half year, compared with Rs 651.33 crore a year earlier.

During the September 2026 quarter, Centrum Capital raised Rs 39.32 crore through debentures, compared with Rs 23.36 crore in the preceding quarter. Centrum Retail Services raised Rs 104.26 crore and Centrum Financial Services raised Rs 13.55 crore through debentures; the company said existing group debentures were secured by a first pari-passu charge over specified assets, with asset cover exceeding 100% of principal at September 30, 2026.

Conclusion

Centrum Capital's September 2026 quarter combined higher operating revenue of Rs 873.75 crore with a substantially larger Rs 157.12 crore consolidated loss. The banking business generated the largest segment loss at Rs 115.03 crore before tax, while the prior-year quarter's Rs 275.50 crore of other income was not repeated.

The disclosed matter to watch is Unity Small Finance Bank's warrant timetable and shareholder dispute. Its Board, with consent from majority warrant holders, extended the exercise period for Rs 900 crore of Series 1 warrants to October 31, 2029 from October 31, 2026; Rs 1,000 crore of Series 2 warrants are also due on October 31, 2029, while arbitration involving a major shareholder remains sub-judice.