KIFS Financial Services profit drops to Rs 195.53 lakh

KIFS Financial Services Limited reported unaudited net profit of Rs 195.53 lakh for the quarter ended September 30, 2026, down from Rs 212.42 lakh a year earlier, as finance costs rose to Rs 5.88 crore from Rs 4.04 crore despite interest income increasing to Rs 8.78 crore.

What were KIFS Financial Services' September-quarter earnings?

KIFS Financial Services reported net profit of Rs 195.53 lakh for the quarter ended September 30, 2026, compared with Rs 212.42 lakh in the quarter ended September 30, 2025 and Rs 203.81 lakh in the June 2026 quarter. The year-on-year decline was Rs 16.89 lakh, while the sequential decline was Rs 8.28 lakh. Basic and diluted earnings per share, which were not annualised, were Rs 1.81, against Rs 1.96 a year earlier and Rs 1.88 in the preceding quarter.

Interest income, which represented the reported revenue from operations, rose to Rs 8.78 crore in the September 2026 quarter from Rs 7.05 crore in the September 2025 quarter. The September figure was below the Rs 12.53 crore reported in the June 2026 quarter. Total revenue was unchanged from interest income because the company reported no other income for the September quarter.

Profit before tax was Rs 2.60 crore in the September 2026 quarter, down from Rs 2.83 crore a year earlier and Rs 2.71 crore in June 2026. Total tax expense was Rs 64.70 lakh, compared with Rs 71 lakh in the prior-year quarter. KIFS Financial Services stated that it had no exceptional or extraordinary items to report for the disclosed periods.

Why did KIFS Financial Services' quarterly profit fall?

KIFS Financial Services' quarterly profit fell because total expenses increased by more than total revenue year on year. Total expenses reached Rs 6.18 crore in the September 2026 quarter, up from Rs 4.22 crore in the September 2025 quarter, an increase of Rs 1.96 crore. Revenue rose by Rs 1.73 crore over the same comparison, leaving profit before tax lower by Rs 23.19 lakh.

Finance costs were the principal expense movement, increasing to Rs 5.88 crore from Rs 4.04 crore a year earlier. That Rs 1.83 crore increase was greater than the Rs 1.73 crore increase in interest income. Finance costs were nonetheless lower than Rs 9.47 crore in the June 2026 quarter, when quarterly revenue was also higher at Rs 12.53 crore.

Employee benefit expense was Rs 14.18 lakh in the September 2026 quarter, compared with Rs 13.11 lakh in the year-earlier quarter. Depreciation and amortisation expense rose to Rs 14.28 lakh from Rs 1 lakh, while total other expenses fell to Rs 2.12 lakh from Rs 3.32 lakh. The reduction in other expenses did not offset the increase in finance costs.

How did KIFS Financial Services perform in the first half?

KIFS Financial Services reported net profit of Rs 3.99 crore for the half year ended September 30, 2026, compared with Rs 3.81 crore for the half year ended September 30, 2025. The increase was Rs 18.52 lakh. Half-year earnings per share were Rs 3.69, against Rs 3.52 in the comparable prior-year period.

Half-year total revenue increased to Rs 21.31 crore from Rs 16.86 crore, while profit before tax rose to Rs 5.32 crore from Rs 5.08 crore. Finance costs increased to Rs 15.34 crore from Rs 11.31 crore, and total expenses rose to Rs 16.00 crore from Rs 11.78 crore. Thus, the Rs 4.45 crore gain in revenue was mostly matched by a Rs 4.22 crore increase in total expenses.

The half-year outcome differs from the September-quarter comparison because the six-month profit was higher despite the decline in the second quarter. KIFS Financial Services reported a single finance segment under Accounting Standard 17, or AS 17, on segment reporting. The filing therefore provides no separate lending-product, customer-category or geographic revenue figures.

What changed in KIFS Financial Services' balance sheet and cash flow?

KIFS Financial Services reported loans of Rs 430.22 crore as of September 30, 2026, up from Rs 414.18 crore at March 31, 2026. Total assets were Rs 449.55 crore at September 30, compared with Rs 451.08 crore at the March year-end. The loan increase coincided with a decline in bank balances other than cash and cash equivalents to Rs 4.47 crore from Rs 23.16 crore.

Investments declined to Rs 3.30 crore at September 30 from Rs 8.04 crore at March 31, while other financial assets increased to Rs 6.17 crore from Rs 3.91 lakh. Total equity rose to Rs 65.69 crore from Rs 63.38 crore. Equity share capital remained Rs 10.82 crore, while other equity increased to Rs 54.87 crore from Rs 52.56 crore.

Borrowings other than debt securities were Rs 377.50 crore on September 30, 2026, down from Rs 381.83 crore on March 31, 2026. Total financial liabilities were Rs 377.51 crore, compared with Rs 381.86 crore at year-end. Provisions increased to Rs 4.64 crore from Rs 3.82 crore, while total liabilities declined to Rs 383.86 crore from Rs 387.71 crore.

Cash used in operating activities was Rs 21.75 crore for the half year ended September 30, 2026, including an Rs 16.04 crore outflow for loans and advances. Sale of investments generated Rs 4.74 crore, and dividend and dividend-tax payments were Rs 1.68 crore. Cash and cash equivalents closed at Rs 4.48 crore, versus Rs 23.16 crore at the start of the period, reflecting a net decrease of Rs 18.68 crore.

What did KIFS Financial Services disclose about dividend and review?

KIFS Financial Services said its shareholders declared a final dividend of Rs 1.55 per share for the financial year ended March 31, 2026, at the 31st annual general meeting on September 29, 2026. The dividend was paid on 1,08,18,000 equity shares with a face value of Rs 10 each. The cash-flow statement recorded Rs 1.68 crore for dividend and dividend-tax payment during the half year.

The board approved the unaudited quarter and half-year results on November 6, 2026, following audit committee review. The statutory auditors performed a limited review under Standard on Review Engagements 2410. Their report said nothing had come to their attention that caused them to believe the results did not make the required disclosures or contained a material misstatement.

Conclusion

KIFS Financial Services recorded higher interest income and higher first-half net profit, but its September-quarter net profit declined to Rs 195.53 lakh. The quarterly comparison shows finance costs increased by Rs 1.83 crore, exceeding the Rs 1.73 crore increase in revenue, while the balance sheet showed loans rising by Rs 16.04 crore over March 31, 2026.

What to watch next is whether the difference between interest income and finance costs changes in subsequent results, given September-quarter finance costs of Rs 5.88 crore and half-year finance costs of Rs 15.34 crore. The filing discloses no business target or earnings guidance; it records only the completed November 6, 2026 board approval and limited review process.