Wealth First H1 profit falls 40% as operating revenue drops

Wealth First Portfolio Managers Limited reported consolidated net profit of Rs 16.32 crore for the half year ended 30 September 2026, down 40% from Rs 27.03 crore a year earlier, as revenue from operations fell 29% to Rs 29.60 crore. The unaudited result also included losses from three of the group’s four disclosed subsidiaries.

Why did Wealth First’s H1 consolidated profit decline?

Wealth First’s H1 consolidated profit declined as operating revenue and total income fell while expenses increased. Revenue from operations was Rs 29.60 crore in the half year ended 30 September 2026, compared with Rs 45.39 crore in the corresponding half year of 2025. Other income rose to Rs 6.60 crore from Rs 26.33 lakh, but did not offset the Rs 15.79 crore fall in operating revenue.

Total income fell 21% to Rs 36.21 crore from Rs 45.65 crore. Consolidated expenses increased to Rs 13.71 crore from Rs 8.90 crore, with employee-benefit expense rising to Rs 8.19 crore from Rs 6.13 crore and other expenses increasing to Rs 5.03 crore from Rs 2.60 crore. Profit before tax consequently declined to Rs 22.50 crore from Rs 36.75 crore, while tax expense decreased to Rs 6.18 crore from Rs 9.72 crore.

Wealth First reported earnings per share, or EPS, of Rs 15.32 for the half year ended 30 September 2026, compared with Rs 25.37 a year earlier. The weighted average number of basic and diluted shares was unchanged at 1,06,55,000 in both periods, so the lower EPS followed the decline in reported consolidated profit.

How did Wealth First perform in the September 2026 quarter?

Wealth First reported consolidated net profit of Rs 5.90 crore for the quarter ended 30 September 2026, down 47% from Rs 11.07 crore in the September 2025 quarter and 43% from Rs 10.42 crore in the June 2026 quarter. Quarterly revenue from operations was Rs 15.28 crore, compared with Rs 20.57 crore a year earlier and Rs 14.32 crore in the preceding quarter.

Total income in the September 2026 quarter was Rs 17.22 crore, below Rs 20.76 crore in the year-earlier quarter and Rs 18.98 crore in the June 2026 quarter. Employee-benefit expense rose to Rs 5.25 crore from Rs 4.23 crore a year earlier, while depreciation and amortisation increased to Rs 27.80 lakh from Rs 9.02 lakh. Total expenses were Rs 8.47 crore, compared with Rs 5.50 crore in the September 2025 quarter.

Profit before tax for the September 2026 quarter was Rs 8.76 crore, versus Rs 15.26 crore a year earlier and Rs 13.74 crore in the June 2026 quarter. Tax expense was Rs 2.86 crore, against Rs 4.20 crore in the corresponding 2025 quarter. Basic and diluted quarterly EPS was Rs 5.54, compared with Rs 10.39 a year earlier and Rs 9.87 in the immediately preceding quarter.

Which Wealth First subsidiaries reported losses in H1?

Three of Wealth First’s four disclosed subsidiaries reported losses for the half year ended 30 September 2026. Wealth First Investment Advisers Private Limited was the exception, reporting H1 revenue of Rs 22.87 lakh and profit after tax of Rs 11.30 lakh. Its total assets stood at Rs 1.29 crore at 30 September 2026.

Wealth Shield Insurance Brokers Private Limited reported H1 revenue of Rs 65.91 lakh and a loss after tax of Rs 39.44 lakh, with total assets of Rs 97.49 lakh. Its loss after tax in the September 2026 quarter was Rs 33.88 lakh on revenue of Rs 38.97 lakh. The auditor reviewed the subsidiary’s interim financial information for inclusion in the consolidated results.

Lakshya Asset Management Private Limited recorded the largest disclosed subsidiary loss in H1 2026, at Rs 1.02 crore after tax, despite H1 revenue of Rs 2.03 crore. Its total assets were Rs 58.65 crore at 30 September 2026, while its September-quarter loss was Rs 1.13 crore on revenue of Rs 63.87 lakh. The consolidated auditor relied on another auditor’s review report for this subsidiary.

Lakshya Trustee Private Limited reported H1 revenue of Rs 3,719 and a loss after tax of Rs 27.14 lakh. Its total assets were Rs 80.60 lakh at 30 September 2026. In the September quarter, the trustee unit reported revenue of Rs 1,782 and a loss after tax of Rs 24.54 lakh.

What do Wealth First’s cash flows and balance sheet show?

Wealth First generated net cash from operating activities of Rs 22.69 crore in H1 2026, compared with Rs 10.37 crore in H1 2025. Cash generated from operations was Rs 29.03 crore and income tax paid was Rs 6.33 crore. The higher operating cash flow occurred despite profit before tax falling to Rs 22.50 crore from Rs 36.75 crore.

Investing activities used Rs 19.89 crore in H1 2026, compared with Rs 37.63 lakh a year earlier. Loans given or deposits in banks accounted for Rs 19.76 crore, while purchases or sales of investments used Rs 99.11 lakh. Financing activities used Rs 1.37 crore, including Rs 1.37 crore for dividend and corporate social responsibility payments.

Consolidated cash and cash equivalents rose to Rs 2.73 crore at 30 September 2026 from Rs 1.30 crore at the start of the period. Current investments were Rs 80.41 crore, down from Rs 90.38 crore at 31 March 2026, while non-current investments increased to Rs 26.07 crore from Rs 15.10 crore. Trade receivables decreased to Rs 5.40 crore from Rs 8.46 crore over the same period.

How does the consolidated result compare with standalone performance?

Wealth First’s standalone net profit was Rs 17.89 crore for the half year ended 30 September 2026, compared with consolidated net profit of Rs 16.32 crore. The difference reflects the inclusion of subsidiaries in the consolidated accounts, three of which reported H1 losses. Standalone revenue from operations was Rs 28.88 crore, compared with consolidated operating revenue of Rs 29.60 crore.

Standalone profit also fell from Rs 25.14 crore in the half year ended 30 September 2025 to Rs 17.89 crore in H1 2026. Standalone total expenses increased to Rs 9.60 crore from Rs 8.75 crore, while consolidated expenses increased more sharply to Rs 13.71 crore from Rs 8.90 crore. The group’s reported business remains broking services, distribution of mutual funds and government securities trading, with no separate reportable operating segments disclosed.

Conclusion

Wealth First’s H1 2026 result combined a 40% year-on-year decline in consolidated profit with a 29% reduction in operating revenue and a rise in expenses. Other income of Rs 6.60 crore moderated the fall in total income, but profit before tax still decreased by Rs 14.25 crore. Losses at Wealth Shield Insurance Brokers, Lakshya Asset Management and Lakshya Trustee were included in the consolidated result.

The next results will show whether operating revenue recovers from the H1 level of Rs 29.60 crore and whether total expenses move from Rs 13.71 crore. The unresolved matters disclosed in the September 2026 results are the losses at the three subsidiaries, led by Lakshya Asset Management’s H1 loss after tax of Rs 1.02 crore.