S.I. Capital September profit falls 72% as expenses increase

S.I. Capital & Financial Services Limited reported profit after tax of Rs 4 lakh for the quarter ended September 30, 2026, down 72% from Rs 14.15 lakh in the June 2026 quarter, as total expenses increased to Rs 1.02 crore from Rs 95.71 lakh while total income declined to Rs 1.06 crore.

Why did S.I. Capital's September-quarter profit fall?

S.I. Capital's September-quarter profit fell because total income declined by Rs 4 lakh sequentially while total expenses rose by Rs 6.15 lakh. Profit before tax and profit after tax were both Rs 4 lakh for the quarter ended September 30, 2026, compared with Rs 14.15 lakh in the quarter ended June 30, 2026; the results statement did not record current or deferred tax expense in either quarter.

Employee benefits expense and fees and commission expense accounted for the largest sequential cost increases. Employee benefits rose to Rs 39.07 lakh in the September quarter from Rs 34.78 lakh in the June quarter, while fees and commission expense increased to Rs 20.42 lakh from Rs 16.67 lakh. Finance costs were Rs 22.73 lakh, marginally above Rs 22.58 lakh in the preceding quarter.

Other expense lines did not fully offset those increases. Other expenses declined to Rs 17.19 lakh from Rs 18.88 lakh, and impairment on financial instruments fell to Rs 97,000 from Rs 1.33 lakh. Total expenses nevertheless reached Rs 1.02 crore in September 2026, against Rs 95.71 lakh three months earlier.

S.I. Capital's net profit margin, defined in the filing as profit after tax divided by total income, declined to 3.78% from 12.88% in June 2026. Basic and diluted earnings per share, which were not annualised, were Rs 0.01 in September 2026, compared with Rs 0.28 in June 2026.

How did S.I. Capital's income compare with prior periods?

S.I. Capital reported total income of Rs 1.06 crore for the September 2026 quarter, down from Rs 1.10 crore in June 2026 but up from Rs 91.89 lakh in September 2025. The year-on-year increase in total income was about 15%, whereas profit after tax fell from Rs 10.88 lakh in the comparable quarter to Rs 4 lakh.

Total revenue from operations was Rs 1.06 crore in the September 2026 quarter, compared with Rs 1.09 crore in June 2026 and Rs 90.96 lakh a year earlier. Other income was Rs 20,000 in September, down from Rs 72,000 in June and Rs 93,000 in the September 2025 quarter.

The filing separately recorded sale of services at Rs 95,000 for the September 2026 quarter, against Rs 82,000 in June 2026 and Rs 63,000 a year earlier. Revenue from operations before that service-income line was Rs 1.05 crore in September, compared with Rs 1.08 crore in June and Rs 90.33 lakh in September 2025.

For the half year ended September 30, 2026, total income rose to Rs 2.16 crore from Rs 1.78 crore in the corresponding prior-year half. Half-year profit after tax, however, declined to Rs 18.16 lakh from Rs 31 lakh as total expenses increased to Rs 1.98 crore from Rs 1.47 crore.

Which September-quarter costs changed most year on year?

S.I. Capital's employee benefits expense increased by Rs 13.84 lakh year on year to Rs 39.07 lakh in the September 2026 quarter. Fees and commission expense rose to Rs 20.42 lakh from Rs 11.22 lakh, while finance costs increased to Rs 22.73 lakh from Rs 19.39 lakh.

Total expenses rose by about 26% year on year to Rs 1.02 crore from Rs 81.01 lakh, exceeding the roughly 15% rise in total income. As a result, profit after tax decreased by Rs 6.88 lakh from Rs 10.88 lakh in the September 2025 quarter to Rs 4 lakh in the latest quarter.

Impairment on financial instruments was a notable exception to the higher-cost pattern, falling to Rs 97,000 from Rs 8.58 lakh a year earlier. Depreciation and amortisation increased to Rs 1.47 lakh from Rs 1.42 lakh, while other expenses rose to Rs 17.19 lakh from Rs 15.17 lakh.

The same categories changed over the six-month period. Employee benefits expense was Rs 73.84 lakh for the half year ended September 2026 versus Rs 51.72 lakh a year earlier, and fees and commission expense was Rs 37.09 lakh versus Rs 21.07 lakh. Half-year impairment declined to Rs 2.30 lakh from Rs 3.56 lakh.

What do S.I. Capital's balance sheet and loan-quality disclosures show?

S.I. Capital reported total assets of Rs 22.44 crore as at September 30, 2026, compared with 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 broadly unchanged at Rs 13.11 crore from Rs 13.15 crore.

The half-year cash-flow statement recorded financing cash inflow of Rs 7.42 crore, including Rs 7.58 crore received against shares issued. Operating activities generated Rs 60.27 lakh, investing activities used Rs 1.25 lakh, and cash and cash equivalents at the end of the half year were reported at Rs 8.19 crore.

Equity share capital was Rs 12.63 crore at September 30, 2026, compared with Rs 5.05 crore at March 31, 2026. The September-quarter disclosure reported net worth of Rs 13.51 crore and a debt-equity ratio of 0.59, against net worth of Rs 5.90 crore and a ratio of 1.37 in June 2026.

S.I. Capital, which said it is in lending finance, reported Stage 3 loan assets equivalent to 3.85% of gross loan assets at September 30, 2026, up from 3.66% at June 30. Net Stage 3 loan assets to gross loan assets increased to 0.51% from 0.33%, while provision coverage declined to 86.77% from 90.95%.

How were S.I. Capital's results reviewed and presented?

S.I. Capital's unaudited standalone financial 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 results were prepared under Indian Accounting Standard 34, or Ind AS 34, according to the filing.

Ayyar & Cherian issued an unqualified review conclusion on the interim financial results. The auditor stated that its review had not identified anything causing it to believe the financial statement was not prepared in accordance with Ind AS 34, applicable disclosure requirements and relevant prudential norms.

S.I. Capital said it has no separate reportable segments under Ind AS 108, the accounting standard on operating segments, because it is in lending finance. The results therefore do not provide revenue, profit or loan-book data by lending product, customer type or geography.

The company reported total debts to total assets of 35.61% for the September quarter, down from 55.22% in June 2026. Its capital adequacy ratio, calculated under Reserve Bank of India guidelines, was 98.35% in September, compared with 43.09% in June.

Conclusion

S.I. Capital's September-quarter outcome shows that higher year-on-year income did not produce higher earnings. Total income increased to Rs 1.06 crore from Rs 91.89 lakh a year earlier, but expenses rose faster to Rs 1.02 crore from Rs 81.01 lakh, while sequential profit declined to Rs 4 lakh from Rs 14.15 lakh.

The filing leaves employee benefits and fees and commission expense as important items to monitor after they reached Rs 39.07 lakh and Rs 20.42 lakh, respectively, in the September quarter. It also provides no segment-level lending disclosure, while Stage 3 loan assets rose to 3.85% of gross loan assets from 3.66% in June 2026.