GDL Leasing H1 profit drops 75% on Rs 69.46 lakh charge

GDL Leasing and Finance Limited reported net profit of Rs 20.65 lakh for the half year ended September 30, 2026, down 75% from Rs 81.75 lakh a year earlier, as GDL Leasing recorded a Rs 69.46 lakh impairment charge on financial instruments while total income declined to Rs 1.63 crore.

Why did GDL Leasing’s H1 profit fall?

GDL Leasing’s H1 profit fell because expenses rose sharply relative to income, principally after the company recorded Rs 69.46 lakh of impairment of financial instruments in the six months to September 30, 2026. The company had reported no impairment expense in the corresponding half year ended September 30, 2025, while its profit before tax declined to Rs 25.81 lakh from Rs 91.45 lakh.

Net profit for the period was Rs 20.65 lakh, compared with Rs 81.75 lakh in H1 of the prior year, a reduction of Rs 61.10 lakh. Earnings per equity share, both basic and diluted, declined to Rs 0.41 from Rs 1.63, based on paid-up equity share capital of Rs 5.01 crore with a face value of Rs 10 per share.

The impairment charge was split across the two reported quarters, at Rs 35.02 lakh in the quarter ended September 30, 2026, after Rs 34.44 lakh in the quarter ended June 30, 2026. Total expenses for H1 reached Rs 1.37 crore, compared with Rs 91.82 lakh a year before, despite lower finance costs and lower fees and commission expenses.

How did GDL Leasing’s income change in H1?

GDL Leasing’s total income decreased to Rs 1.63 crore in H1 ended September 30, 2026 from Rs 1.83 crore in H1 ended September 30, 2025. Total revenue from operations was Rs 1.63 crore, down from Rs 1.83 crore, while the prior-year period also included Rs 0.43 lakh of other income that was absent in the latest half year.

Interest income was Rs 1.23 crore, compared with Rs 1.28 crore a year earlier, while fees and commission income fell to Rs 40.13 lakh from Rs 54.47 lakh. The Rs 14.34 lakh reduction in fees and commission income was larger than the Rs 5.75 lakh fall in interest income, meaning both disclosed operating-income streams declined in the half year.

The September quarter generated total income of Rs 74.84 lakh, lower than Rs 87.91 lakh in the June quarter and Rs 1.14 crore in the September 2025 quarter. Interest income improved sequentially to Rs 64.15 lakh from Rs 58.47 lakh, but fees and commission income dropped to Rs 10.69 lakh from Rs 29.44 lakh over the same three-month comparison.

Which expenses changed most for GDL Leasing?

GDL Leasing’s financial-instrument impairment was the largest new expense driver in H1, at Rs 69.46 lakh, compared with nil in H1 of the preceding year. This charge alone exceeded the company’s reported H1 net profit of Rs 20.65 lakh and accounted for more than half of total expenses of Rs 1.37 crore.

Fees and commission expenses declined to Rs 30.34 lakh from Rs 49.99 lakh, and other expenses decreased to Rs 18.01 lakh from Rs 23.87 lakh. Finance cost also fell to Rs 4.80 lakh from Rs 5.40 lakh, but those reductions did not offset the additional impairment expense and a rise in employee benefit expense to Rs 14.05 lakh from Rs 12.45 lakh.

In the September quarter, total expenses were Rs 67.29 lakh, marginally below Rs 69.65 lakh in the June quarter but above Rs 59.53 lakh in the September 2025 quarter. The quarterly impairment charge increased slightly to Rs 35.02 lakh from Rs 34.44 lakh in June, while fees and commission expenses rose to Rs 16.30 lakh from Rs 14.04 lakh.

What happened to GDL Leasing’s loans and cash balance?

GDL Leasing’s loans increased to Rs 7.55 crore at September 30, 2026 from Rs 7.50 crore at March 31, 2026. Total assets rose to Rs 8.37 crore from Rs 8.09 crore over the same period, with other financial assets increasing to Rs 62.82 lakh from Rs 16.88 lakh.

Cash and cash equivalents fell to Rs 8.80 lakh at September 30 from Rs 39.22 lakh at the March 31 year-end. The cash-flow statement reports Rs 30.42 lakh of net cash used in operating activities during H1, compared with Rs 1.33 crore used in operating activities during the corresponding period of 2025.

Total equity increased to Rs 6.99 crore from Rs 6.78 crore, reflecting other equity of Rs 1.98 crore at September 30 against Rs 1.77 crore at March 31. Borrowings were unchanged at Rs 90 lakh, and deposits were also unchanged at Rs 20.60 lakh, according to the standalone balance sheet.

What did GDL Leasing report for the September quarter?

GDL Leasing reported September-quarter net profit of Rs 7.05 lakh, down from Rs 13.60 lakh in the June 2026 quarter and Rs 49.32 lakh in the September 2025 quarter. Profit before tax was Rs 7.56 lakh, compared with Rs 18.26 lakh sequentially and Rs 54.32 lakh a year earlier.

The September-quarter result included total income of Rs 74.84 lakh and impairment of Rs 35.02 lakh. Current tax expense was Rs 2.22 lakh, while deferred tax was a credit of Rs 1.71 lakh, producing total net profit of Rs 7.05 lakh for the quarter.

The Board approved the unaudited standalone results on November 13, 2026, and reviewed the limited review report issued by Jain Akshay & Associates, Chartered Accountants. The reviewer said nothing had come to its attention to indicate that the results were not prepared in accordance with applicable accounting and disclosure requirements, while noting that a review provides less assurance than an audit.

Conclusion

GDL Leasing’s H1 results show lower operating income and a new Rs 69.46 lakh impairment charge coinciding with a 75% decline in net profit to Rs 20.65 lakh. Loans rose by Rs 5.42 lakh to Rs 7.55 crore, but cash and cash equivalents declined by Rs 30.42 lakh during the six-month period to Rs 8.80 lakh.

The next disclosed corporate action to watch is the Board’s approval of allotment of 30 lakh warrants convertible into an equal number of equity shares on a preferential basis, announced on November 13, 2026. The filing does not state an allotment price, conversion timing or intended use of proceeds, while the future level of impairment expense also remains undisclosed.