Jindal Capital profit falls 33% despite higher interest income

Jindal Capital Limited reported net profit of Rs 20.51 lakh for the quarter ended September 30, 2026, down 33% from Rs 30.71 lakh a year earlier, despite interest income rising to Rs 118.51 lakh from Rs 86.58 lakh. Higher finance, employee and other expenses, together with tax expense of Rs 17.56 lakh, reduced profit after tax.

Why did Jindal Capital's September-quarter profit fall?

Jindal Capital's net profit after tax fell by Rs 10.20 lakh year on year to Rs 20.51 lakh in the quarter ended September 30, 2026. Profit before tax declined by Rs 2.96 lakh to Rs 38.07 lakh from Rs 41.03 lakh in the September 2025 quarter, indicating that the larger decline after tax also reflected a higher tax charge.

Tax expense was Rs 17.56 lakh in the latest quarter, compared with Rs 10.33 lakh a year earlier. The current-tax charge was Rs 17.59 lakh, partly offset by deferred tax of Rs 3,000. Jindal Capital reported no exceptional items in either September quarter, leaving the comparison dependent on the stated income, cost and tax lines.

The sequential comparison was also lower at the net-profit level. Net profit was Rs 31.80 lakh in the quarter ended June 30, 2026, compared with Rs 20.51 lakh in the September quarter, although profit before tax rose from Rs 31.80 lakh to Rs 38.07 lakh. The June-quarter statement did not report tax expense, whereas the September quarter included the Rs 17.56 lakh tax charge.

What changed in Jindal Capital's income and costs?

Jindal Capital's total income from operations rose by Rs 31.68 lakh to Rs 129.95 lakh in the September 2026 quarter from Rs 98.27 lakh a year earlier. Interest income, its largest disclosed income component, increased by Rs 31.93 lakh to Rs 118.51 lakh from Rs 86.58 lakh, while fees and commission income declined to Rs 2.04 lakh from Rs 5.69 lakh.

Other income was Rs 9.41 lakh in the latest quarter, compared with the income composition reported for September 2025. The Rs 31.68 lakh rise in total income was less than the Rs 34.65 lakh increase in total expenses, which explains why profit before tax declined even as interest income grew.

Finance cost rose by Rs 12.75 lakh to Rs 36.89 lakh from Rs 24.14 lakh. Employee-benefit expense increased by Rs 5.70 lakh to Rs 31.87 lakh, and other expenses climbed by Rs 14.68 lakh to Rs 22.84 lakh. Depreciation and amortisation expense fell to Rs 28,000 from Rs 11.39 lakh, but this decline did not offset the increases in the other reported costs.

Compared with the quarter ended June 30, 2026, total income from operations increased from Rs 109.87 lakh to Rs 129.95 lakh and total expenses rose from Rs 78.06 lakh to Rs 91.88 lakh. Interest income increased by Rs 13.27 lakh quarter on quarter, finance cost rose by Rs 3.31 lakh, and employee-benefit expense increased from Rs 23.49 lakh to Rs 31.87 lakh.

What do Jindal Capital's half-year results show?

Jindal Capital reported net profit after tax of Rs 52.32 lakh for the half year ended September 30, 2026, up from Rs 50.92 lakh in the half year ended September 30, 2025. The Rs 1.40 lakh increase came despite tax expense rising to Rs 17.56 lakh from Rs 10.33 lakh over the same periods.

Total income from operations for the six months increased by Rs 63.44 lakh to Rs 239.82 lakh from Rs 176.38 lakh. Interest income rose to Rs 223.75 lakh from Rs 159.14 lakh, while fees and commission income declined to Rs 4.65 lakh from Rs 9.89 lakh. Other income was Rs 11.42 lakh for the latest half year.

Total expenses were Rs 169.94 lakh for the half year ended September 2026, compared with Rs 115.13 lakh a year earlier. Finance cost rose to Rs 70.46 lakh from Rs 39.43 lakh, employee-benefit expense increased to Rs 55.37 lakh from Rs 53.96 lakh, and other expenses rose to Rs 43.55 lakh from Rs 15.29 lakh.

Profit before tax increased by Rs 8.63 lakh to Rs 69.88 lakh for the latest half year from Rs 61.25 lakh a year earlier, less than the rise in total income. Jindal Capital said it is primarily engaged in financing and therefore reported no separate operating segments under applicable Indian Accounting Standards, or Ind AS.

How did Jindal Capital's balance sheet and cash position change?

Jindal Capital's total assets were Rs 27.89 crore at September 30, 2026, compared with Rs 27.76 crore at March 31, 2026. Loans stood at Rs 27.06 crore at the September date, compared with Rs 27.12 crore at the March year-end, while cash and cash equivalents declined to Rs 20.61 lakh from Rs 23.67 lakh.

Borrowings decreased to Rs 13.85 crore at September 30 from Rs 14.24 crore at March 31, a reduction of Rs 39.45 lakh. Other financial liabilities fell to Rs 22.36 lakh from Rs 64.61 lakh, while non-financial liabilities rose to Rs 78.29 lakh from Rs 59.82 lakh. Equity share capital remained Rs 7.21 crore and other equity increased to Rs 5.54 crore from Rs 5.02 crore.

For the half year ended September 30, 2026, Jindal Capital reported net operating cash flow of Rs 35.36 lakh. It reported Rs 5.37 lakh used in investing activities and Rs 33.05 lakh used in financing activities, producing a Rs 3.06 lakh decline in cash and cash equivalents from the opening Rs 23.67 lakh.

The board approved the unaudited standalone results on November 13, 2026. STRG & Associates issued a limited review report saying that nothing had come to its attention to indicate a material misstatement in the results, while stating that a review provides less assurance than an audit.

Conclusion

Jindal Capital's September-quarter figures show that the Rs 31.93 lakh increase in interest income did not result in higher net profit. Total expenses increased by Rs 34.65 lakh, led by rises of Rs 14.68 lakh in other expenses and Rs 12.75 lakh in finance cost, while tax expense increased by Rs 7.23 lakh year on year. Net profit consequently fell to Rs 20.51 lakh despite total income from operations of Rs 129.95 lakh.

The filing leaves the sources of income, assets and profit within the financing business unresolved because Jindal Capital reported no separate segments. The point to watch in future disclosures is whether the company provides further detail on the lending activity behind its Rs 27.06 crore loan book and the movement in finance costs against borrowings of Rs 13.85 crore.