Kumbhat Financial Services reports Rs 18.43 lakh quarterly loss

Kumbhat Financial Services Limited reported a Rs 18.43 lakh loss for the quarter ended September 30, 2026, reversing a Rs 7.99 lakh profit a year earlier, as impairment on financial instruments increased to Rs 54.72 lakh from Rs 12.06 lakh despite total income rising to Rs 2.00 crore.

Why did Kumbhat Financial Services report a September-quarter loss?

Kumbhat Financial Services reported a September 2026-quarter loss because expenses rose beyond income, principally following a Rs 54.72 lakh impairment charge on financial instruments. Total expenses increased to Rs 2.18 crore from Rs 1.58 crore in the quarter ended September 30, 2025, while total income increased to Rs 2.00 crore from Rs 1.66 crore.

The impairment charge rose by Rs 42.66 lakh from the year-earlier quarter and by Rs 46.82 lakh from Rs 7.90 lakh in the quarter ended June 30, 2026. Finance cost was Rs 90.74 lakh, up from Rs 76.89 lakh a year earlier, although below Rs 1.05 crore in the preceding quarter. Kumbhat Financial Services also recorded a Rs 50,000 net gain on fair-value changes, compared with a Rs 6.70 lakh loss a year earlier.

Loss before tax was Rs 18.43 lakh, compared with profit before tax of Rs 7.99 lakh in the September 2025 quarter and Rs 10.12 lakh in the June 2026 quarter. Tax expense was Rs 10,000, leaving loss after tax at Rs 18.43 lakh. Basic and diluted earnings per share were each negative Rs 0.35, against positive Rs 0.15 in the year-earlier quarter.

How did Kumbhat Financial Services' income and costs change?

Kumbhat Financial Services' income rose by Rs 33.66 lakh year on year in the September 2026 quarter, but its expenses rose by a larger Rs 60.07 lakh. Total income also rose by Rs 2.35 lakh from Rs 1.97 crore in the June 2026 quarter, whereas total expenses increased by Rs 30.89 lakh from Rs 1.87 crore over the same comparison.

Interest income was Rs 1.79 crore in the September quarter, compared with Rs 1.73 crore in the June quarter. Fees and commission income was Rs 20.95 lakh, down from Rs 24.64 lakh sequentially but above Rs 12.00 lakh in the September 2025 quarter. Dividend income was Rs 3,000, compared with Rs 7,000 a year earlier.

Employee benefit expense rose to Rs 4.01 lakh from Rs 1.56 lakh in the September 2025 quarter, while other expenses fell to Rs 10.90 lakh from Rs 14.44 lakh. Kumbhat Financial Services said segment reporting is not applicable because it operates in a single segment, retail loans. The company also reported no shareholder or investor complaints during July to September 2026.

What were Kumbhat Financial Services' half-year results and financial position?

Kumbhat Financial Services reported a Rs 8.32 lakh loss for the half year ended September 30, 2026, compared with a Rs 19.38 lakh profit in the corresponding six months of 2025. Half-year total income increased to Rs 3.97 crore from Rs 3.08 crore, but total expenses climbed to Rs 4.06 crore from Rs 2.88 crore.

Half-year impairment on financial instruments increased to Rs 62.62 lakh from Rs 22.03 lakh, while finance cost rose to Rs 1.96 crore from Rs 1.40 crore. Fees and commission income reached Rs 45.59 lakh, compared with Rs 14.23 lakh a year earlier. The resulting loss before tax was Rs 8.31 lakh, reversing a Rs 20.03 lakh profit before tax in the earlier half year.

Total assets stood at Rs 27.87 crore at September 30, 2026, compared with Rs 27.34 crore at March 31, 2026 and Rs 22.75 crore a year earlier. Loans were Rs 26.04 crore, below Rs 26.60 crore at the March 2026 year-end but above Rs 21.98 crore at September 30, 2025. Cash and cash equivalents were Rs 1.19 crore, against Rs 14.27 lakh at March 31, 2026.

Total liabilities were Rs 21.83 crore at September 30, 2026, up from Rs 21.22 crore at the preceding year-end. Borrowings were Rs 19.25 crore, down from Rs 19.63 crore at March 31, 2026 but up from Rs 15.00 crore a year earlier. Equity was Rs 6.04 crore, compared with Rs 6.12 crore at the March 2026 year-end, as other equity declined to Rs 71.07 lakh from Rs 79.40 lakh.

What is Kumbhat Financial Services' proposed preferential issue?

Kumbhat Financial Services has proposed a preferential issue of up to 26,11,724 equity shares to promoter Sanjay Kumbhat at Rs 17.23 a share, aggregating up to Rs 4.50 crore. Each share has a face value of Rs 10 and the issue price includes a premium of Rs 7.23 per share.

The proposed allotment would increase Sanjay Kumbhat's holding to 38,01,414 shares, or 47.88%, from 11,89,690 shares, or 22.33%, according to the filing. The board approved convening an extraordinary general meeting on December 10, 2026 to seek shareholder approval through a special resolution. The proposal also remains subject to Reserve Bank of India and other applicable statutory and regulatory approvals.

How did cash flow change for Kumbhat Financial Services?

Kumbhat Financial Services reported a Rs 1.05 crore increase in cash and cash equivalents in the six months ended September 30, 2026, compared with a Rs 3.62 crore decrease in the corresponding 2025 period. Closing cash and cash equivalents were Rs 1.19 crore, compared with Rs 19.14 lakh at September 30, 2025.

Net cash generated from operating activities was Rs 2.60 crore for the six-month period, compared with Rs 2.71 crore used in operations a year earlier. Financing activities used Rs 1.56 crore, including Rs 1.18 crore of finance cost paid, compared with Rs 91.23 lakh used in financing activities in the corresponding prior-year period.

Conclusion

Kumbhat Financial Services' September-quarter move from a Rs 7.99 lakh profit to a Rs 18.43 lakh loss occurred even as income rose to Rs 2.00 crore. The Rs 54.72 lakh quarterly impairment charge, together with higher finance cost and employee expenses, resulted in total expenses of Rs 2.18 crore and contributed to a Rs 8.32 lakh half-year loss.

The next disclosed event is the December 10, 2026 extraordinary general meeting on the proposed Rs 4.50 crore preferential issue to promoter Sanjay Kumbhat. Investors can watch the shareholder vote and the required regulatory approvals, as well as subsequent disclosures on the proposed issue of up to 26,11,724 shares at Rs 17.23 each.