NCL Research cannot calculate interest on Rs 49.1007152 crore loans

For the quarter ended September 30, 2026, NCL Research & Financial Services Limited could not calculate interest income on Rs 49.1007152 crore of loans and advances because documents establishing applicable rates were unavailable to the auditors. Management said it was pursuing recovery and had considered expected credit-loss allowances and other provisions.

Which NCL Research loans lack recognised interest?

NCL Research did not recognise interest on Rs 49.1007152 crore across two disclosed pools as at September 30, 2026. The first pool was Rs 21.0063152 crore of advances, while the second was Rs 28.0944 crore of outstanding loans. In both cases, the filing says documents were not provided to establish, or crystallise, the interest rate.

The Rs 28.0944 crore outstanding-loan pool exceeded the Rs 21.0063152 crore advance pool by Rs 7.0880848 crore. The filing does not identify the counterparties, repayment dates, contractual rates or ageing of either pool, so it does not permit calculation of the omitted interest income.

NCL Research reported Rs 1.6026 crore of interest income for the three months ended September 30, 2026 and Rs 3.2632 crore for the six months ended that date. Those reported income figures cannot be used to estimate the interest missing from the two exposure pools because the applicable rates were not documented for the auditors.

Why could NCL Research not calculate the interest?

NCL Research could not calculate the unrecognised interest because auditors said they had not received documents that established rates on the Rs 21.0063152 crore advances and Rs 28.0944 crore loans. The limited-review report dated November 13, 2026 said insufficient information prevented calculation of interest on the advances and finalisation of interest income on the loans.

The disclosure does not state that the full Rs 49.1007152 crore is unrecoverable. For the Rs 21.0063152 crore advance pool, NCL Research said the exposures were credit-impaired and recorded an expected credit loss, or ECL, allowance of Rs 73.52 lakh. For the Rs 28.0944 crore loan pool, management said ECL and other provisions had been taken into account but did not disclose a separate provision amount.

Maheshwari & Co. issued an unmodified limited-review conclusion for the September 2026 results, while stating that it relied solely on management representations for the accounting treatments and disclosures relating to both pools. The auditors also drew attention to trade receivables, loans and advances, and other financial liabilities that remain subject to confirmation or reconciliation.

How did NCL Research's earnings and loan book change?

NCL Research reported a loss of Rs 73.21 lakh for the quarter ended September 30, 2026, compared with profit of Rs 97.89 lakh in the corresponding 2025 quarter. Total income fell to Rs 78.61 lakh from Rs 1.6763 crore, as the company recorded a Rs 85.85 lakh loss from futures and options, or F&O, trading, against a Rs 26.55 lakh loss a year earlier.

For the six months ended September 30, 2026, NCL Research reported profit of Rs 39.70 lakh, down from Rs 2.6794 crore in the corresponding six months of 2025. Interest income declined by Rs 45.85 lakh to Rs 3.2632 crore, while the company recorded Rs 51.40 lakh of ECL provision in the 2026 half-year against no such provision in the comparative period.

Other loans rose to Rs 105.0623 crore at September 30, 2026 from Rs 92.67 crore at March 31, 2026. The cash-flow statement reported Rs 12.3924 crore used by the increase in loans during the first half, compared with Rs 4.3492 crore in the prior-year period, alongside the continuing absence of recognised interest on the two specified pools.

What recovery and confirmation work has NCL Research disclosed?

NCL Research said management was holding discussions with relevant parties for effective recovery of the Rs 21.0063152 crore advances and Rs 28.0944 crore loans. The September 30, 2026 filing gives no collection deadline, settlement amount, legal action, restructuring terms or borrower-level recovery data.

NCL Research also said balances of trade payables, trade receivables, loans and advances were subject to confirmation or reconciliation as at September 30, 2026. Management said it did not expect material adjustments from this process, while other financial liabilities were Rs 9.9224 crore at September 30, 2026, down from Rs 11.548 crore at March 31, 2026.

NCL Research received Rs 49.9486 crore from a rights issue in the six months ended September 30, 2026, according to its cash-flow statement. Equity share capital increased to Rs 156.9814 crore from Rs 107.0328 crore at March 31, 2026, and the notes said statutory approvals, filings and supporting records for the issue should be maintained for audit verification.

Conclusion

NCL Research's September 2026 results show an unresolved interest-recognition limitation over Rs 49.1007152 crore of advances and loans. The company reported Rs 3.2632 crore of first-half interest income and booked a Rs 73.52 lakh ECL allowance against the credit-impaired advance pool, but the absent rate documents mean the unrecognised interest cannot be calculated from the filing.

The next disclosure to watch is whether NCL Research documents the contractual rates and reports recoveries from the two pools. Management's stated plan is to continue discussions for effective recovery, while loan and advance balances remain subject to confirmation or reconciliation following the September 30, 2026 reporting date.