Emerald Finance Limited Q2 profit rises 47% to Rs 5.30 crore

Emerald Finance Limited reported consolidated profit after tax of Rs 5.30 crore for the quarter ended 30 September 2026, up 47% from Rs 3.60 crore a year earlier, as revenue from operations rose 46% to Rs 10.07 crore. Higher interest income and fees-based income drove the revenue increase, while finance costs and impairment charges also increased.

How did Emerald Finance’s Q2 profit change?

Emerald Finance’s consolidated profit after tax rose by Rs 1.70 crore year on year to Rs 5.30 crore in the quarter ended 30 September 2026, from Rs 3.60 crore in the quarter ended 30 September 2025. Profit before tax increased to Rs 7.06 crore from Rs 4.81 crore, while total income rose to Rs 10.07 crore from Rs 6.91 crore. The unaudited results were approved by the board on 4 November 2026.

Profit also increased from Rs 4.88 crore in the quarter ended 30 June 2026. The sequential increase was Rs 42.63 lakh, while profit before tax rose from Rs 6.54 crore to Rs 7.06 crore. Profit attributable to owners of the holding company was Rs 5.00 crore in the September 2026 quarter, and non-controlling interest accounted for Rs 30.22 lakh.

Basic earnings per share, not annualised, was Rs 1.51 for the September 2026 quarter, compared with Rs 1.04 a year earlier. Diluted earnings per share was Rs 1.49, compared with Rs 1.04 in the September 2025 quarter. Paid-up equity share capital was unchanged at Rs 34.54 crore, with a face value of Rs 10 per share.

What drove Emerald Finance’s revenue growth?

Emerald Finance’s revenue from operations rose to Rs 10.07 crore from Rs 6.90 crore a year earlier because both reported operating-income lines increased. Interest income rose 38% to Rs 4.94 crore from Rs 3.57 crore, while fees-based income increased 54% to Rs 5.13 crore from Rs 3.33 crore. Fees-based income was the larger of the two reported operating-income lines in the latest quarter.

Compared with the quarter ended 30 June 2026, interest income increased from Rs 4.14 crore to Rs 4.94 crore, while fees-based income declined from Rs 5.29 crore to Rs 5.13 crore. The Rs 79.94 lakh increase in interest income exceeded the Rs 16.60 lakh decrease in fees-based income, lifting revenue from operations from Rs 9.44 crore to Rs 10.07 crore. Other income was Rs 2,000 in the September 2026 quarter, compared with Rs 25,000 a year earlier.

For the half year ended 30 September 2026, Emerald Finance reported revenue from operations of Rs 19.50 crore, compared with Rs 13.82 crore in the comparable prior-year half. Interest income reached Rs 9.08 crore from Rs 6.93 crore, while fees-based income increased to Rs 10.42 crore from Rs 6.69 crore. The filing identifies the company’s sole operating segment as finance, a non-banking finance company activity.

Which costs rose alongside Emerald Finance’s income?

Emerald Finance’s total expenses increased to Rs 3.01 crore in the September 2026 quarter from Rs 2.09 crore a year earlier. Finance costs rose to Rs 1.25 crore from Rs 60.88 lakh, impairment of financial assets was Rs 28.83 lakh, and fees and commission expense increased to Rs 11.76 lakh from Rs 4.92 lakh.

Employee benefit expense moved in the opposite direction, declining to Rs 83.17 lakh from Rs 1.23 crore, while other expenditure increased to Rs 43.85 lakh from Rs 19.97 lakh. Depreciation and amortisation expense was Rs 8.47 lakh in the September 2026 quarter. The corresponding September 2025 field is blank in the filed statement, so it does not provide a stated year-on-year comparison for that line.

For the six months ended 30 September 2026, finance costs rose to Rs 2.06 crore from Rs 1.29 crore, and impairment of financial assets was Rs 50.04 lakh. Half-year total expenses increased to Rs 5.91 crore from Rs 4.57 crore, while profit before tax rose to Rs 13.60 crore from Rs 9.08 crore. Emerald Finance said its impairment allowances under Indian Accounting Standard 109 exceeded the provision required under Income Recognition Asset Classification and Provisioning norms at 30 September 2026, so no transfer to an impairment reserve was required.

What changed in Emerald Finance’s balance sheet and cash flow?

Emerald Finance’s consolidated assets stood at Rs 148.65 crore at 30 September 2026, up from Rs 120.73 crore at 31 March 2026. Loans increased to Rs 131.00 crore from Rs 111.06 crore, accounting for most of the Rs 27.93 crore rise in total assets. Trade receivables also increased to Rs 5.58 crore from Rs 2.95 crore, while cash and cash equivalents rose to Rs 3.90 crore from Rs 2.66 crore.

Total liabilities rose to Rs 39.64 crore at 30 September 2026 from Rs 21.93 crore at the March 2026 year-end. Borrowings other than debt securities were Rs 31.71 crore, compared with Rs 16.96 crore, and total equity increased to Rs 109.01 crore from Rs 98.80 crore. Equity attributable to owners of the holding company was Rs 106.27 crore, while non-controlling interest was Rs 2.75 crore.

Net cash used in operating activities for the half year was Rs 8.32 crore, compared with Rs 10.64 crore used in the prior-year half. The cash outflow included a Rs 20.37 crore increase in loans, partly offset by Rs 14.75 crore of net borrowings. Net cash from financing activities was Rs 12.60 crore, compared with net cash used of Rs 1.90 crore in the prior-year period, and Emerald Finance ended September 2026 with cash and cash equivalents of Rs 3.90 crore.

Conclusion

Emerald Finance’s September 2026 quarter combined a 46% increase in revenue from operations with a 47% rise in consolidated profit after tax to Rs 5.30 crore. Interest income contributed Rs 4.94 crore and fees-based income contributed Rs 5.13 crore, while finance costs rose to Rs 1.25 crore and total expenses increased to Rs 3.01 crore.

The filing does not disclose a financial target, business plan, unresolved matter or scheduled future event after the board approved these unaudited results on 4 November 2026. Subsequent disclosures will show whether the Rs 131.00 crore loan balance at 30 September 2026 continues to grow alongside borrowings of Rs 31.71 crore and finance costs of Rs 1.25 crore in the quarter.