Usha Financial first-half profit rises 80% to Rs 16.76 crore

Usha Financial Services Limited reported profit after tax of Rs 16.76 crore for the half year ended September 30, 2026, up 80% from Rs 9.32 crore a year earlier, as total income reached Rs 45.91 crore and loans rose to Rs 498.39 crore. Operating activities used Rs 36.83 crore of cash during the period.

How did Usha Financial’s first-half profit change?

Usha Financial’s profit after tax increased by Rs 7.44 crore to Rs 16.76 crore in the half year ended September 30, 2026, from Rs 9.32 crore in the corresponding half of 2025. Profit before tax rose to Rs 22.19 crore from Rs 12.46 crore, while total tax expense increased to Rs 5.43 crore from Rs 3.14 crore.

The quarter ended September 30, 2026 contributed Rs 8.73 crore of the half-year profit, compared with Rs 3.98 crore in the quarter ended September 30, 2025. Basic and diluted earnings per share for the half year were Rs 3.86 each, against Rs 2.14 each in the prior-year half, with both figures stated as not annualised.

Profit increased faster than income because total expenses rose to Rs 23.72 crore from Rs 21.93 crore, while total income rose to Rs 45.91 crore from Rs 34.39 crore. The statement reported no exceptional item for either half-year period, leaving profit before exceptional items and tax at Rs 22.19 crore for the latest half year.

What drove Usha Financial’s income growth?

Usha Financial’s total income rose to Rs 45.91 crore in the half year ended September 30, 2026 from Rs 34.39 crore a year earlier, led by interest income of Rs 44.14 crore versus Rs 33.56 crore. Revenue from operations was Rs 45.81 crore and other income was Rs 10.06 lakh, compared with Rs 7.50 lakh in the prior-year half.

Fees income increased to Rs 1.63 crore from Rs 62.48 lakh, while other operating income rose to Rs 47.10 lakh from Rs 12.59 lakh. Interest income accounted for the largest part of the Rs 45.81 crore revenue from operations in the latest half year.

In the quarter ended September 30, 2026, Usha Financial reported total income of Rs 25.51 crore, compared with Rs 20.32 crore in the preceding quarter ended June 30, 2026 and Rs 16.97 crore in the quarter ended September 30, 2025. Quarterly interest income was Rs 24.53 crore, against Rs 19.61 crore sequentially and Rs 16.52 crore a year earlier.

Which costs changed in Usha Financial’s first half?

Usha Financial’s total expenses rose to Rs 23.72 crore in the 2026 half year from Rs 21.93 crore in the previous corresponding period, with finance costs increasing to Rs 12.78 crore from Rs 12.04 crore. Finance costs were the largest expense category in both half-year periods.

Impairment on financial instruments increased to Rs 1.70 crore from Rs 47.71 lakh, while employee benefits expense rose to Rs 2.96 crore from Rs 1.81 crore. Fees and commission expense was Rs 1.81 crore versus Rs 1.15 crore, depreciation and amortisation was Rs 1.01 crore versus Rs 79.64 lakh, and other expenses were Rs 3.46 crore versus Rs 2.66 crore.

The quarterly movement in impairment differed within the latest half year. Usha Financial recorded impairment expense of Rs 1.81 crore in the quarter ended September 30, 2026 after a reversal of Rs 11.32 lakh in the quarter ended June 30, 2026.

How much did Usha Financial’s loan book and funding grow?

Usha Financial’s loans increased 28% to Rs 498.39 crore at September 30, 2026 from Rs 390.05 crore at March 31, 2026. Total assets rose to Rs 543.89 crore from Rs 429.64 crore over the six-month period, while total financial assets increased to Rs 513.86 crore from Rs 403.03 crore.

The balance-sheet expansion coincided with higher funding balances. Borrowings other than debt securities rose to Rs 207.82 crore at September 30 from Rs 121.77 crore at March 31, while debt securities increased to Rs 62.19 crore from Rs 53.95 crore. Total financial liabilities were Rs 294.53 crore, compared with Rs 199.18 crore.

Total equity increased to Rs 246.45 crore from Rs 223.68 crore, comprising unchanged share capital of Rs 43.48 crore and other equity of Rs 202.98 crore. Usha Financial is a non-banking financial company, or NBFC, that lends to financial institutions, corporates and individuals on a pan-India basis, and it reported no separate operating segments under Indian Accounting Standard 108.

Why did Usha Financial report negative operating cash flow?

Usha Financial reported net cash used in operating activities of Rs 36.83 crore for the latest half year, compared with net cash generated from operations of Rs 10.60 crore in the prior-year half. The cash-flow statement recorded a Rs 107.72 crore increase in loans during the latest half year, compared with a Rs 2.14 crore decrease in the prior-year period.

Operating profit before working-capital changes was Rs 22.70 crore, compared with Rs 17.09 crore in the previous half year. After working-capital movements, cash generated from operations was negative Rs 84.14 crore, versus positive Rs 12.47 crore, and income tax paid was Rs 2.75 crore compared with Rs 1.87 crore.

Financing activities generated net cash of Rs 94.50 crore in the latest half year, including net proceeds of Rs 85.96 crore from borrowings and Rs 8.54 crore from debt securities. Investing activities used Rs 7.60 crore, including Rs 5.15 crore for investment property and Rs 2.38 crore in other bank balances, while cash and cash equivalents ended at Rs 2.65 crore against Rs 2.63 crore at the start of the period.

Conclusion

Usha Financial combined interest-led income growth with a 28% increase in loans, producing an 80% rise in first-half profit to Rs 16.76 crore. Its total assets rose by Rs 114.25 crore from March 31, 2026, while borrowings other than debt securities increased by Rs 86.05 crore and operating cash flow shifted from a Rs 10.60 crore inflow to a Rs 36.83 crore outflow.

The filing does not disclose a loan-growth target or a scheduled future event beyond the results approval on November 12, 2026. The unresolved matters for subsequent results include whether loan expansion continues at the September 30 pace, how funding balances develop after borrowings reached Rs 207.82 crore, and whether impairment remains near the first-half Rs 1.70 crore level.