Richfield Financial Services revenue doubles as profit slips

Richfield Financial Services Limited reported revenue from operations of Rs 9.8253 crore for the half year ended 30 September 2026, compared with Rs 4.896 crore a year earlier, while profit after tax fell to Rs 39.80 lakh from Rs 42.93 lakh as finance costs and employee expenses increased.

How did Richfield Financial Services perform in the first half?

Richfield Financial Services more than doubled revenue from operations to Rs 9.8253 crore in the half year ended 30 September 2026 from Rs 4.896 crore in the corresponding 2025 period. Interest income rose to Rs 9.4666 crore from Rs 4.4777 crore, while miscellaneous income declined to Rs 35.87 lakh from Rs 41.83 lakh.

Total income, which includes other income, increased to Rs 10.0157 crore from Rs 5.1285 crore. Other income was Rs 19.04 lakh, compared with Rs 23.25 lakh in the prior-year half. Total expenses rose to Rs 9.4838 crore from Rs 4.5725 crore, leaving profit before tax of Rs 53.19 lakh, down from Rs 55.60 lakh.

Profit after tax declined by Rs 3.13 lakh to Rs 39.80 lakh, despite the increase in income. Basic and diluted earnings per share were Rs 0.41, against Rs 0.57 in the year-earlier half. The statement recorded no discontinued operations or other comprehensive income, making total comprehensive income also Rs 39.80 lakh.

Why did Richfield Financial Services profit decline despite revenue growth?

Richfield Financial Services recorded finance costs of Rs 4.6819 crore for the half year, up from Rs 1.7558 crore a year earlier. The Rs 2.9261 crore increase in finance costs was slightly greater than the Rs 2.9229 crore rise in interest income, which limited the profit contribution from the higher lending-related income.

Employee benefit expense rose to Rs 3.0839 crore from Rs 1.508 crore. Operating expenses increased to Rs 1.2406 crore from Rs 88.80 lakh, rent rose to Rs 70.71 lakh from Rs 21.75 lakh, and depreciation, amortisation and impairment increased to Rs 8.54 lakh from Rs 6.30 lakh. Total expenses consequently increased by Rs 4.9113 crore, compared with a Rs 4.8872 crore increase in total income.

Tax expense was Rs 13.38 lakh in the latest half year, compared with Rs 11.79 lakh in the prior-year period. Current tax was Rs 3.17 lakh, down from Rs 12.23 lakh, but deferred tax expense was Rs 10.21 lakh after a deferred tax credit of Rs 44,000 a year earlier.

What did the September 2026 quarter show for Richfield Financial Services?

Richfield Financial Services reported total income of Rs 5.0854 crore for the quarter ended 30 September 2026, compared with Rs 4.9303 crore in the preceding June 2026 quarter. Interest income was Rs 4.7116 crore, marginally below Rs 4.755 crore in June, while other income rose to Rs 16.38 lakh from Rs 2.66 lakh.

Quarterly profit after tax was Rs 6.23 lakh, down from Rs 33.58 lakh in the June 2026 quarter and Rs 33.52 lakh in the September 2025 quarter. Profit before tax fell to Rs 8.32 lakh from Rs 44.87 lakh sequentially as finance costs rose to Rs 2.7252 crore from Rs 1.9567 crore.

Employee benefit expense in the September quarter was Rs 1.6029 crore, against Rs 1.481 crore in June. Current tax was a credit of Rs 6.10 lakh, compared with a Rs 9.28 lakh expense in June, while deferred tax expense was Rs 8.20 lakh against Rs 2.01 lakh. Basic and diluted earnings per share were Rs 0.06, down from Rs 0.35 in June.

What changed in Richfield Financial Services' balance sheet and cash flows?

Richfield Financial Services' total assets increased to Rs 92.3078 crore at 30 September 2026 from Rs 84.5528 crore at 31 March 2026. Cash and cash equivalents rose to Rs 464.71 lakh from Rs 298.64 lakh, and the company reported investments of Rs 4.50 crore at September-end, against no reported investment balance at 31 March.

Subordinated liabilities increased to Rs 64.8134 crore from Rs 56.7136 crore, while debt securities declined to Rs 9.0053 crore from Rs 10.1208 crore. Other financial liabilities rose to Rs 2.4833 crore from Rs 1.1375 crore. Equity share capital was unchanged at Rs 9.6562 crore, while other equity increased to Rs 4.9028 crore from Rs 4.5047 crore.

The cash-flow statement reported financing cash inflow of Rs 698.43 lakh for the period ended 30 September 2026. This was partly offset by investing cash outflow of Rs 528.25 lakh and operating cash outflow of Rs 4.11 lakh, resulting in closing cash and cash equivalents of Rs 464.71 lakh. Richfield Financial Services stated that it operates in one segment and therefore did not provide segment results.

Did Richfield Financial Services receive an auditor qualification?

Richfield Financial Services did not report an auditor qualification on its standalone unaudited results for the half year ended 30 September 2026. A John Moris & Co., in its limited review report dated 12 November 2026, said nothing had come to its attention to suggest that the results contained a material misstatement or failed to make the disclosures required under Regulation 33 of the Securities and Exchange Board of India listing regulations.

The auditor conducted the work under Standard on Review Engagement 2410, which it said is substantially narrower in scope than an audit conducted under the Companies Act, 2013. Richfield Financial Services' board approved the quarter and half-year results on 12 November 2026, in a meeting held from 3:15 p.m. to 4:10 p.m.

Conclusion

Richfield Financial Services generated substantially higher first-half revenue, principally through interest income of Rs 9.4666 crore, but the income gain did not translate into higher profit. Finance costs of Rs 4.6819 crore, employee benefit expense of Rs 3.0839 crore and higher operating expenses left profit after tax below the prior-year half-year figure.

The next disclosed corporate event is the departure of Company Secretary and Compliance Officer Roopamol K S, who is due to be relieved at the close of business on 2 December 2026. The board also deferred consideration of a proposed company name change on 12 November 2026 and disclosed no decision or further timetable for that proposal.