Unifinz Capital Q1 FY26 Results (BSE: 541358)
Signal: Earnings grew
The read
The trajectory is rapid lending-income growth but weaker earnings conversion: total income reached ₹18,033.75 lakh, +117.1% YoY, while impairment climbed 212.8% to ₹8,321.49 lakh and finance costs climbed 574.1% to ₹2,347.64 lakh, limiting PAT growth to 3.2% and raising debt-equity to 2.16x.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹180.34 Cr | +117.1% | +18.6% |
| Net profit | ₹17.35 Cr | +3.2% | |
| EPS | ₹3.92 | +3.2% | |
| EBIT margin | 0% |
P&L walk
Standalone total income grew 117.1% YoY and 18.6% QoQ, but PAT growth was limited to 3.2% YoY because impairment rose 212.8% YoY and finance costs rose 574.1% YoY.
Key positives
- Total income was ₹18,033.75 lakh, growing 117.1% YoY and 18.6% QoQ, led by interest income of ₹17,137.99 lakh versus ₹8,289.09 lakh YoY.
- Fee and commission income reached ₹884.88 lakh in the quarter versus nil in the year-ago quarter, adding a new non-interest revenue stream.
- GNPA and NNPA were both reported at 0.00%, while CRAR remained 22.20%.
- Basic EPS of ₹3.92 tracked PAT growth of 3.2% YoY, indicating no material dilution signal in the quarter.
Key concerns
- Impairment of financial assets increased 212.8% YoY to ₹8,321.49 lakh and 40.0% QoQ, materially outpacing revenue growth and consuming earnings.
- Finance costs rose 574.1% YoY to ₹2,347.64 lakh and 101.1% QoQ, while debt-equity increased to 2.16x from 1.68x at March 31, 2026.
- Employee benefit expenses rose 203.3% YoY to ₹1,707.09 lakh, faster than total income growth and indicating higher operating-cost intensity during expansion.
- PAT declined 9.7% QoQ to ₹1,735.21 lakh despite total income growth of 18.6% QoQ.
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