Ushakiran Finance Limited posts Q2 profit but OCI loss

Ushakiran Finance Limited reported a Rs 2.29 lakh profit for the quarter ended 30 September 2026, reversing a Rs 4.96 lakh loss a year earlier, but a Rs 18.55 lakh other comprehensive loss resulted in a Rs 16.26 lakh total comprehensive loss. Ushakiran Finance also reported Rs 10.76 lakh first-half profit.

Why did Ushakiran Finance report profit but a comprehensive loss?

Ushakiran Finance reported profit because quarterly total income of Rs 7.56 lakh exceeded total expenses of Rs 5.16 lakh, producing profit before tax of Rs 2.40 lakh and profit after tax of Rs 2.29 lakh. In the quarter ended 30 September 2025, the company recorded a Rs 4.96 lakh loss after a Rs 6.14 lakh tax expense.

Ushakiran Finance nevertheless reported a Rs 16.26 lakh total comprehensive loss because other comprehensive income, net of tax, was negative Rs 18.55 lakh in the September 2026 quarter. The filing classifies the underlying item as one that will not be reclassified to profit or loss. In comparison, other comprehensive income was Rs 120.01 lakh in the June 2026 quarter and negative Rs 185.08 lakh a year earlier.

The reported profit and total comprehensive result therefore moved in different directions during the quarter. In June 2026, Rs 8.47 lakh profit combined with Rs 120.01 lakh other comprehensive income to produce Rs 128.48 lakh total comprehensive income. The September quarter returned to profit at the profit-and-loss level, but the other comprehensive loss more than offset it.

What changed in Ushakiran Finance's quarterly income and expenses?

Ushakiran Finance's total income fell to Rs 7.56 lakh from Rs 20 lakh in the June 2026 quarter and Rs 10.75 lakh in the September 2025 quarter. The principal sequential change was that net gain on fair-value changes of Rs 13.21 lakh in June became a Rs 2.39 lakh net loss in the latest quarter, recorded within revenue from operations.

Interest income was Rs 5.18 lakh, compared with Rs 5.26 lakh in June and Rs 3.73 lakh a year earlier. Dividend income rose to Rs 4.72 lakh from Rs 1.46 lakh in the preceding quarter, but remained below Rs 6.95 lakh in the September 2025 quarter. Revenue from operations was Rs 7.51 lakh, while other income was Rs 5,000.

Ushakiran Finance reduced total expenses to Rs 5.16 lakh from Rs 9.60 lakh in June and Rs 9.57 lakh a year earlier. Other expenses declined to Rs 1.78 lakh from Rs 5.66 lakh sequentially, and employee-benefit expense decreased to Rs 3.02 lakh from Rs 3.41 lakh. The comparable September 2025 quarter included a Rs 4.24 lakh net loss on fair-value changes within expenses, which was absent in the latest quarter.

The company reported no finance costs and no exceptional items for the quarter ended 30 September 2026. Depreciation and amortisation was Rs 36,000, unchanged from June 2026 and below Rs 52,000 a year earlier. Basic and diluted earnings per share, not annualised, were Rs 0.09 each, compared with a loss per share of Rs 0.19 in the year-earlier quarter.

How did Ushakiran Finance perform in the first half?

Ushakiran Finance earned Rs 10.76 lakh for the half year ended 30 September 2026, compared with Rs 2.21 lakh in the corresponding half of 2025. Profit before tax rose to Rs 12.80 lakh from Rs 10.10 lakh, while total tax expense decreased to Rs 2.04 lakh from Rs 7.89 lakh.

Total income was Rs 27.56 lakh, marginally below Rs 28.60 lakh in the prior-year half. Revenue from operations declined to Rs 27.44 lakh from Rs 28.44 lakh as net gain on fair-value changes fell to Rs 10.82 lakh from Rs 12.85 lakh and dividend income decreased to Rs 6.18 lakh from Rs 7.71 lakh. Interest income increased to Rs 10.44 lakh from Rs 7.88 lakh.

Total expenses fell to Rs 14.76 lakh from Rs 18.50 lakh in the prior-year half. The latest six-month period included Rs 17,000 impairment on financial instruments, while the earlier period reported a negative Rs 27,000 impairment amount and a Rs 4.24 lakh net loss on fair-value changes. Half-year basic and diluted earnings per share were Rs 0.42 each, against Rs 0.09 each a year earlier.

Other comprehensive income, net of tax, was Rs 101.46 lakh for the half year, compared with Rs 106.17 lakh in the corresponding 2025 period. Total comprehensive income consequently increased to Rs 112.22 lakh from Rs 108.38 lakh. The results identify Investments as Ushakiran Finance's single primary business segment, so no operating-segment disclosure was required under Indian Accounting Standard 108.

What do Ushakiran Finance's assets and cash flow show?

Ushakiran Finance reported total assets of Rs 14.6712 crore at 30 September 2026, compared with Rs 13.5377 crore at 31 March 2026. Investments rose to Rs 13.3949 crore from Rs 12.1742 crore, while loans increased to Rs 84.53 lakh from Rs 83.03 lakh. Investments were the largest reported asset category at the half-year date.

Cash and cash equivalents increased to Rs 14.70 lakh from Rs 8.25 lakh at 31 March 2026, while other bank balances rose to Rs 15.38 lakh from Rs 15.04 lakh. Property, plant and equipment declined to Rs 4.07 lakh from Rs 4.78 lakh, and investment property was unchanged at Rs 7.04 lakh. Other equity stood at Rs 11.8908 crore, up from Rs 10.7687 crore.

Ushakiran Finance reported net cash used in operating activities of Rs 75,000 for the half year, despite profit before tax of Rs 12.80 lakh. Cash generated from operations was negative Rs 31,000 after a Rs 1.34 lakh increase in loans and a Rs 35,000 increase in other bank balances; direct taxes paid were Rs 44,000. Net investing cash inflow was Rs 7.20 lakh, reflecting proceeds from sale of investments.

The company recorded a Rs 6.45 lakh net increase in cash and cash equivalents during the half year, versus a Rs 20.64 lakh decrease in the year ended 31 March 2026. Other financial liabilities were Rs 1.71 lakh at 30 September, down from Rs 2.19 lakh at year-end. The filing also states that Ushakiran Finance has no non-convertible debt instruments.

What was the auditor's conclusion on Ushakiran Finance's results?

Ushakiran Finance received an unmodified limited-review conclusion from NSVR & Associates LLP for the quarter and half year ended 30 September 2026. The auditor said nothing had come to its attention that caused it to believe the unaudited results failed to disclose required information or contained a material misstatement.

The Board approved the unaudited financial results, statement of assets and liabilities, and cash-flow statement on 6 November 2026. The filing says the Audit Committee reviewed and recommended the results before Board approval, and that they were prepared under Indian Accounting Standards, including Indian Accounting Standard 34 for interim financial reporting.

The auditor conducted the work under Standard on Review Engagements 2410, which covers a review of interim financial information by the entity's independent auditor. NSVR & Associates LLP said such a review provides moderate assurance and is substantially less extensive than an audit. Its conclusion was not modified.

Conclusion

Ushakiran Finance returned to quarterly and first-half profit for the period ended 30 September 2026 as lower expenses helped offset lower income. However, the Rs 18.55 lakh other comprehensive loss converted the Rs 2.29 lakh quarterly profit into a Rs 16.26 lakh total comprehensive loss, while six-month total comprehensive income remained positive at Rs 112.22 lakh.

The filing discloses no specific future target or scheduled reporting event. The next results will show whether interest income of Rs 10.44 lakh and first-half profit of Rs 10.76 lakh are maintained, and how further changes in the Rs 13.3949 crore investment balance affect fair-value gains or losses and other comprehensive income.