Real Touch Finance Limited's profit falls 10% on funding costs

Real Touch Finance Limited reported profit of Rs 1.8252 crore for the quarter ended September 30, 2026, down 10% from Rs 2.0204 crore a year earlier, as finance costs rose 48% to Rs 5.9215 crore and revenue from operations fell 14% to Rs 9.3929 crore.

Why did Real Touch Finance's September-quarter profit decline?

Real Touch Finance's September-quarter profit declined because higher finance costs and lower income from direct assignment outweighed a substantially lower impairment charge. Profit before tax was Rs 2.5496 crore, compared with Rs 2.6999 crore in the quarter ended September 30, 2025, while profit after tax declined by Rs 19.52 lakh to Rs 1.8252 crore.

Finance costs increased by Rs 1.9265 crore year on year, from Rs 3.995 crore in the September 2025 quarter to Rs 5.9215 crore. Total income declined by Rs 1.4923 crore to Rs 9.6677 crore, while total expenses fell by Rs 1.3419 crore to Rs 7.1181 crore. The reduction in expenses was therefore insufficient to prevent the decline in profit before tax.

The largest expense change was impairment on financial instruments. Real Touch Finance recorded an impairment credit of Rs 14.12 lakh in the September 2026 quarter, against an impairment expense of Rs 2.5788 crore a year earlier, a favourable movement of Rs 2.72 crore. This offset was partly countered by the higher finance cost and the fall in total income.

How did Real Touch Finance's revenue change in the quarter?

Real Touch Finance's revenue from operations fell 14% year on year to Rs 9.3929 crore in the September 2026 quarter from Rs 10.9675 crore. Interest income rose to Rs 8.6873 crore from Rs 7.9374 crore, but this increase did not offset a fall in income from direct assignment to Rs 9.50 lakh from Rs 2.30 crore.

Fee income declined to Rs 61.06 lakh from Rs 73.01 lakh, while other income increased to Rs 27.48 lakh from Rs 19.25 lakh. The fall in direct-assignment income of Rs 2.205 crore was larger than the Rs 74.99 lakh increase in interest income, resulting in the lower operating-revenue total.

Sequentially, revenue improved from the June 2026 quarter. Revenue from operations rose from Rs 8.6318 crore in the quarter ended June 30, 2026, while total income increased from Rs 8.6429 crore to Rs 9.6677 crore. Profit for the period increased from Rs 1.1568 crore in June to Rs 1.8252 crore in September, although finance costs also rose from Rs 5.8523 crore.

What do Real Touch Finance's half-year results show?

Real Touch Finance's profit for the half year ended September 30, 2026 declined 11% to Rs 2.9819 crore from Rs 3.3637 crore in the comparable 2025 period. Profit before tax fell to Rs 3.9417 crore from Rs 4.4992 crore, and basic earnings per share declined to Rs 2.35 from Rs 2.65.

Revenue from operations for the six months decreased to Rs 18.0246 crore from Rs 19.1477 crore. Interest income increased to Rs 16.633 crore from Rs 15.3385 crore, but income from direct assignment dropped to Rs 9.50 lakh from Rs 2.30 crore and fee income fell to Rs 1.2966 crore from Rs 1.5092 crore.

Finance costs in the half year rose by Rs 3.7103 crore to Rs 11.7739 crore, compared with Rs 8.0636 crore a year earlier. Total expenses nevertheless declined to Rs 14.3687 crore from Rs 14.896 crore because impairment on financial instruments was Rs 57,000, compared with Rs 2.7431 crore in the previous corresponding half year. Total tax expense declined to Rs 95.98 lakh from Rs 1.1355 crore.

What changed in Real Touch Finance's balance sheet and cash flow?

Real Touch Finance's total assets were Rs 320.4441 crore at September 30, 2026, compared with Rs 321.5047 crore at March 31, 2026. Loans declined to Rs 186.5494 crore from Rs 192.0736 crore, while investments were broadly unchanged at Rs 125.0137 crore from Rs 125.0141 crore.

Cash and cash equivalents increased to Rs 83.17 lakh from Rs 15.80 lakh at the start of the financial year. Bank balances other than cash and cash equivalents rose to Rs 7.0968 crore from Rs 3.2036 crore. Total equity increased to Rs 55.2499 crore from Rs 52.2683 crore, as other equity rose to Rs 42.5572 crore from Rs 39.5756 crore; equity share capital remained Rs 12.6927 crore.

Total liabilities decreased to Rs 265.1942 crore from Rs 269.2364 crore. Borrowings other than debt securities edged up to Rs 232.717 crore from Rs 231.9368 crore, while debt securities remained Rs 24.56 crore. Other financial liabilities fell to Rs 6.3412 crore from Rs 8.7235 crore.

Net cash flow from operating activities declined to Rs 3.5274 crore for the half year ended September 2026 from Rs 20.5795 crore a year earlier. The filing records a Rs 5.4996 crore decrease in loans during the 2026 half year, compared with a Rs 22.0206 crore decrease in the prior-year period. Cash used in investing activities was Rs 3.634 crore, including a Rs 3.8932 crore increase in investments.

How was Real Touch Finance's September 2026 result reviewed?

Real Touch Finance's unaudited standalone results for the quarter and half year ended September 30, 2026 were reviewed by the Audit Committee and approved by the board on November 12, 2026. The board meeting began at 3.30 p.m. and concluded at 4.30 p.m., according to the company's filing under the Securities and Exchange Board of India Listing Obligations and Disclosure Requirements Regulations, 2015.

G.S. Chugh & Associates conducted a limited review of the standalone results dated November 12, 2026. The reviewer said nothing had come to its attention indicating that the financial statement was not prepared in accordance with applicable Indian Accounting Standards, or Ind AS, and relevant disclosure requirements. The report specifies that a limited review provides moderate assurance and does not constitute an audit opinion.

The September-quarter statement reported no exceptional or extraordinary items, leaving profit before tax at Rs 2.5496 crore. Total comprehensive income was Rs 1.8247 crore, compared with Rs 2.0213 crore in the September 2025 quarter. The company also stated that previous figures had been regrouped or rearranged where necessary.

Conclusion

The September-quarter figures show that Real Touch Finance's lower profit reflected a Rs 1.9265 crore increase in finance costs and a Rs 1.5746 crore decline in revenue from operations. Higher interest income and the shift from an impairment expense to a Rs 14.12 lakh credit reduced the impact, but did not prevent profit from falling from Rs 2.0204 crore to Rs 1.8252 crore.

The filing discloses no new management target, business plan or scheduled corporate event after the November 12, 2026 board approval. Future disclosures will be relevant for whether finance costs, which reached Rs 5.9215 crore in the September quarter, and direct-assignment income, which was Rs 9.50 lakh, move from their reported levels.