S.I. Capital’s September-quarter profit falls 63% to Rs 4 lakh

S.I. Capital & Financial Services Limited reported profit of Rs 4 lakh for the quarter ended September 30, 2026, down 63% from Rs 10.88 lakh a year earlier, as total expenses rose 26% to Rs 1.02 crore while total income increased 15% to Rs 1.06 crore. S.I. Capital’s board approved the unaudited standalone results on November 12, 2026.

Why did S.I. Capital’s September-quarter profit decline?

S.I. Capital’s September-quarter profit declined because total expenses rose faster than total income. Total income increased to Rs 1.06 crore in the quarter ended September 30, 2026, from Rs 91.89 lakh a year earlier, while expenses rose to Rs 1.02 crore from Rs 81.01 lakh. Profit before tax fell to Rs 4 lakh from Rs 10.88 lakh, and profit for the period was also Rs 4 lakh because the statement recorded no current or deferred tax expense.

Employee benefits were the largest disclosed cost increase in absolute terms, rising by Rs 13.84 lakh to Rs 39.07 lakh from Rs 25.23 lakh. Fees and commission expense increased by Rs 9.20 lakh to Rs 20.42 lakh, while finance costs rose by Rs 3.34 lakh to Rs 22.73 lakh. These three expense lines together rose by Rs 26.38 lakh, compared with a Rs 13.97 lakh increase in total income.

Impairment on financial instruments moved lower, falling to Rs 97,000 from Rs 8.58 lakh in the September 2025 quarter. Other expenses nevertheless increased to Rs 17.19 lakh from Rs 15.17 lakh, and depreciation and amortisation increased to Rs 1.47 lakh from Rs 1.42 lakh. The reduction in impairment did not offset the increases in employee, commission and finance costs, leaving total expenses Rs 20.85 lakh higher year on year.

How did S.I. Capital perform against the June quarter?

S.I. Capital’s profit fell sequentially to Rs 4 lakh in the September 2026 quarter from Rs 14.15 lakh in the June 2026 quarter. Total income declined to Rs 1.06 crore from Rs 1.10 crore, while total expenses increased to Rs 1.02 crore from Rs 95.71 lakh. Revenue from operations was Rs 1.06 crore in September, compared with Rs 1.09 crore in June, while other income declined to Rs 20,000 from Rs 72,000.

The sequential expense increase was led by employee benefits and fees and commission. Employee-benefit expense increased by Rs 4.29 lakh from Rs 34.78 lakh in June, and fees and commission expense rose by Rs 3.75 lakh from Rs 16.67 lakh. Finance costs were Rs 22.73 lakh against Rs 22.58 lakh, while impairment declined to Rs 97,000 from Rs 1.33 lakh.

Basic and diluted earnings per share, which the company stated were not annualised, were Rs 0.01 for the September 2026 quarter. That compared with Rs 0.28 in the June 2026 quarter and Rs 0.22 in the September 2025 quarter. Paid-up equity share capital was Rs 12.63 crore at September 30, 2026, compared with Rs 5.05 crore in the two comparative quarterly columns.

What do S.I. Capital’s half-year results show?

S.I. Capital reported half-year profit of Rs 18.16 lakh for the six months ended September 30, 2026, down from Rs 31 lakh in the corresponding 2025 period. Half-year total income rose to Rs 2.16 crore from Rs 1.78 crore, but total expenses increased to Rs 1.98 crore from Rs 1.47 crore. The Rs 50.94 lakh increase in expenses exceeded the Rs 38.11 lakh increase in income.

For the half year, employee-benefit expense rose to Rs 73.84 lakh from Rs 51.72 lakh and fees and commission expense increased to Rs 37.09 lakh from Rs 21.07 lakh. Finance costs rose to Rs 45.31 lakh from Rs 38.57 lakh, while other expenses increased to Rs 36.08 lakh from Rs 29.02 lakh. Impairment on financial instruments fell to Rs 2.30 lakh from Rs 3.56 lakh, partly moderating the overall increase in costs.

Net cash from operating activities was Rs 60.27 lakh for the half year, compared with net cash used in operating activities of Rs 4.26 lakh in the corresponding 2025 period. The cash-flow statement recorded a Rs 3.13 lakh decrease in loans and a Rs 27.71 lakh increase in other financial liabilities within working-capital movements. It also recorded Rs 7.58 crore received against shares issued, contributing to financing cash flow of Rs 7.42 crore.

What changed in S.I. Capital’s balance sheet and business disclosure?

S.I. Capital’s total assets rose to Rs 22.44 crore at September 30, 2026, from Rs 14.44 crore at March 31, 2026. Cash and cash equivalents increased to Rs 8.19 crore from Rs 18.35 lakh, while loans were marginally lower at Rs 13.11 crore from Rs 13.15 crore. The half-year cash-flow statement reported closing cash and cash equivalents of Rs 8.19 crore after a net increase of Rs 8.01 crore.

Total liabilities were Rs 8.86 crore at September 30, 2026, compared with Rs 8.62 crore at March 31, 2026. Debt securities were largely unchanged at Rs 7.95 crore from Rs 7.95 crore, while subordinated liabilities fell to Rs 3.71 lakh from Rs 20.02 lakh. Other financial liabilities increased to Rs 49.53 lakh from Rs 21.82 lakh, and trade payables to creditors other than micro and small enterprises increased to Rs 20.62 lakh from Rs 13.65 lakh.

S.I. Capital stated that it operates in lending finance and therefore has no separate reportable segments under Indian Accounting Standard 108, Operating Segments. Its standalone results for the quarter and half year ended September 30, 2026 were subject to a limited review by Ayyar & Cherian. The reviewer said nothing had come to its attention indicating that the statement was not prepared in accordance with the applicable reporting requirements.

Conclusion

S.I. Capital’s September-quarter result shows that a 15% rise in total income did not translate into higher profit because the cost base expanded 26%. Employee benefits, fees and commission, and finance costs increased by a combined Rs 26.38 lakh year on year, while profit fell to Rs 4 lakh from Rs 10.88 lakh and from Rs 14.15 lakh in the preceding quarter.

The filing discloses no forward profit target, business plan or future reporting date. The next results will show whether income from operations, which was Rs 2.15 crore in the half year ended September 30, 2026, can grow without a comparable increase in employee and commission costs, and how the Rs 8.19 crore cash balance and Rs 12.63 crore paid-up share capital change.