Dhansafal Finserve returns to profit as revenue rises 38%

Dhansafal Finserve Limited reported Rs 32.47 lakh profit after tax for the quarter ended September 30, 2026, reversing a Rs 9.56 lakh loss a year earlier, as total revenue increased 38% to Rs 4.0039 crore. Interest income rose by Rs 96.78 lakh year on year, while higher finance and employee costs reduced profit from the preceding quarter.

How did Dhansafal Finserve perform in the September 2026 quarter?

Dhansafal Finserve returned to profitability in the September 2026 quarter, reporting Rs 32.47 lakh profit after tax against a Rs 9.56 lakh loss in the quarter ended September 30, 2025. Profit before tax changed to Rs 44.34 lakh from a Rs 7.10 lakh loss, while current tax expense was Rs 11.87 lakh in the latest quarter.

The year-on-year improvement came with total revenue of Rs 4.0039 crore, compared with Rs 2.899 crore a year earlier. Revenue from operations increased to Rs 3.82 crore from Rs 2.7555 crore, and other income increased to Rs 18.39 lakh from Rs 14.35 lakh. Revenue from operations therefore accounted for Rs 3.82 crore of the latest quarter's Rs 4.0039 crore total revenue.

Compared with the quarter ended June 30, 2026, however, profit after tax fell by Rs 25.50 lakh from Rs 57.97 lakh. Total revenue increased by Rs 12.09 lakh from Rs 3.883 crore in June, but total expenses rose by Rs 46.11 lakh to Rs 3.5605 crore. That expense increase reduced profit before tax from Rs 78.36 lakh in the June quarter to Rs 44.34 lakh in the September quarter.

What drove Dhansafal Finserve's revenue growth?

Dhansafal Finserve's revenue growth was led by interest income, which rose to Rs 3.5284 crore in the September 2026 quarter from Rs 2.5606 crore in the year-earlier quarter. The Rs 96.78 lakh increase in interest income was the largest movement among the disclosed operating-income lines and represented most of the Rs 1.0645 crore increase in revenue from operations.

Fees and commission income also increased to Rs 29.17 lakh from Rs 19.49 lakh a year earlier, an increase of Rs 9.68 lakh. Sequentially, interest income increased by Rs 10.25 lakh from Rs 3.4259 crore in the June 2026 quarter, while fees and commission income decreased by Rs 2.56 lakh from Rs 31.73 lakh. This meant revenue from operations increased by Rs 7.68 lakh quarter on quarter.

For the half year ended September 30, 2026, interest income was Rs 6.9543 crore, compared with Rs 4.7503 crore in the prior-year half. Fees and commission income rose to Rs 60.90 lakh from Rs 32.30 lakh, taking revenue from operations to Rs 7.5632 crore from Rs 5.0741 crore. Total revenue for the six months increased to Rs 7.887 crore from Rs 5.2736 crore.

Which costs increased in the September quarter?

Dhansafal Finserve's total expenses increased to Rs 3.5605 crore in the September 2026 quarter from Rs 2.9701 crore a year earlier. Finance costs rose by Rs 53.37 lakh to Rs 95.65 lakh, while employee benefit expenses increased by Rs 31.37 lakh to Rs 1.8729 crore. These two lines together increased by Rs 84.74 lakh year on year.

Other expenses moved in the opposite direction, declining to Rs 21.24 lakh from Rs 63.79 lakh in the year-earlier quarter. Impairment on financial instruments increased to Rs 15.08 lakh from Rs 14.22 lakh, while depreciation and amortisation declined to Rs 16.80 lakh from Rs 20.79 lakh. The reduction in other expenses partly offset the higher finance and employee costs.

On a sequential basis, finance costs rose from Rs 89.74 lakh in the June 2026 quarter and employee benefit expenses rose from Rs 1.5239 crore. Other expenses decreased from Rs 38.91 lakh, while impairment increased from Rs 12.35 lakh. The quarterly result therefore paired slightly higher revenue with a larger rise in total expenses.

What do the half-year earnings show?

Dhansafal Finserve reported Rs 90.43 lakh profit after tax for the half year ended September 30, 2026, compared with Rs 5.37 lakh in the prior-year half. Profit before tax increased to Rs 1.227 crore from Rs 10.89 lakh, while total expenses rose to Rs 6.66 crore from Rs 5.1648 crore.

Half-year finance costs increased to Rs 1.8539 crore from Rs 51.23 lakh, and employee benefit expenses rose to Rs 3.3968 crore from Rs 2.7623 crore. Impairment on financial instruments was Rs 27.42 lakh, compared with Rs 19.10 lakh. Other expenses declined to Rs 80.15 lakh from Rs 1.3413 crore, providing an offset to the increased funding, staff and impairment charges.

The results were approved by the board on November 12, 2026, after review by the audit committee. The statutory auditor's limited review stated that nothing had come to its attention indicating that the unaudited standalone results had not disclosed the required information or contained a material misstatement; it also stated that a review provides less assurance than an audit.

How did Dhansafal Finserve's balance sheet and cash flow change?

Dhansafal Finserve reported loans of Rs 82.4196 crore at September 30, 2026, up from Rs 74.1531 crore at March 31, 2026. Investments increased to Rs 10.0238 crore from Rs 5.1314 crore, while total assets rose to Rs 108.0663 crore from Rs 91.7995 crore. Borrowings increased to Rs 31.5166 crore from Rs 22.1556 crore over the same six-month period.

Other financial liabilities increased to Rs 5.473 crore from Rs 2.7494 crore. Equity share capital rose to Rs 23.714 crore from Rs 22.714 crore, and other equity increased to Rs 46.8957 crore from Rs 43.7589 crore. The balance sheet lists cash and cash equivalents of Rs 8.1888 crore at September 30, 2026, compared with Rs 1.8538 crore at March 31, 2026.

The half-year cash-flow statement recorded Rs 9.5873 crore of net cash used in operating activities, compared with Rs 26.8369 crore used in the prior-year half. It recorded Rs 4.8568 crore used in investing activities and Rs 17.7791 crore generated from financing activities, resulting in a Rs 3.335 crore net increase in cash. The cash-flow statement lists an opening cash balance of Rs 4.8538 crore and a closing balance of Rs 8.1888 crore, which differs from the Rs 1.8538 crore March 31 cash figure in the balance sheet.

What did Dhansafal Finserve disclose about co-lending and warrants?

Dhansafal Finserve disclosed two active co-lending arrangement partners as an originating regulated entity at September 30, 2026. Gross principal outstanding was Rs 10.6002 crore, all classified as standard loans, with nil non-performing loans. The weighted average interest rate was 18.02%, the stated broad sector was loan against property, and the company disclosed a default loss guarantee.

The company also said it had not undertaken co-lending arrangements with banks or non-banking financial companies as a partner regulated entity under the cited Reserve Bank of India framework. Dhansafal Finserve is registered as a non-banking financial company and classified in the Reserve Bank of India's base layer under the scale-based regulations cited in the filing.

On April 2, 2025, Dhansafal Finserve allotted 8.662 crore convertible share warrants at an issue price of Rs 4.31 per warrant, with a subscription amount of Rs 1.0775 per warrant. It said 4.97 crore warrants had converted into equity shares by September 30, 2026. The remaining 3.692 crore warrants were forfeited on October 2, 2026, along with Rs 3.9781 crore received towards those warrants.

Conclusion

Dhansafal Finserve's September-quarter return to profit reflected a 38% rise in total revenue and a Rs 96.78 lakh increase in interest income from a year earlier. The result also showed that finance costs rose by Rs 53.37 lakh and employee benefit expenses by Rs 31.37 lakh, contributing to lower profit than in the immediately preceding quarter despite higher revenue.

The next disclosed event is the reopening of Dhansafal Finserve's trading window on November 15, 2026, after the board approved the September results on November 12. Subsequent disclosures can clarify the effect of the October 2 forfeiture of 3.692 crore warrants and whether the September 30 loan balance of Rs 82.4196 crore and borrowings of Rs 31.5166 crore continue to change.