August 12, 2026: NCL Research & Financial Services Ltd. reported a profitable but weaker first quarter for FY27, with standalone profit after tax (PAT) falling to ₹112.91 lakh from ₹170.05 lakh in Q1 FY26. The company operates in the Finance & Investments segment.
Author: Aadarsh Patel | EQMint
The unaudited results for the quarter ended June 30, 2026 were approved by the Board on August 11, 2026.
Key Q1 FY27 Figures
| Particulars | Q1 FY27 | Q1 FY26 | YoY |
|---|---|---|---|
| Revenue from Operations | ₹166.62 lakh | ₹181.63 lakh | -8.3% |
| Total Income | ₹222.07 lakh | ₹259.54 lakh | -14.4% |
| Profit Before Tax | ₹148.63 lakh | ₹227.09 lakh | -34.6% |
| PAT | ₹112.91 lakh | ₹170.05 lakh | -33.6% |
| EPS | ₹0.01 | ₹0.02 | — |
Interest income remained the company’s primary operating revenue at ₹166.06 lakh, while dividend income contributed ₹0.56 lakh. The company also reported ₹52.65 lakh from F&O trading and ₹2.80 lakh as gain from investments under other income.
Sharp Improvement From March Quarter
The June quarter showed a major sequential improvement.
NCL Research had reported a loss before tax of ₹686.51 lakh in the preceding quarter ended March 31, 2026. It returned to a ₹148.63 lakh profit before tax in Q1 FY27.
PAT also improved sharply from a ₹559.32 lakh loss in Q4 FY26 to ₹112.91 lakh profit in the June quarter.
Expected Credit Loss Remains a Key Expense
The company recorded ₹37.29 lakh as Expected Credit Loss (ECL) during Q1 FY27.
This compares with a much larger ECL provision of ₹398.74 lakh in the March 2026 quarter. The previous quarter also included ₹134.59 lakh of bad debts written off, which contributed to its significant quarterly loss.
Auditor Raises an Important Matter
The statutory auditor, Maheshwari & Co., issued a limited review report without modifying its conclusion but included an Emphasis of Matter.
The auditor noted that interest income on certain outstanding loans and advances has not been recognised because the amount could not currently be determined with reasonable certainty. The company has cited ongoing financial and commercial stress involving certain borrowers.
NCL Research has recognised an ECL provision for these parties and said it expects to recover the principal amounts. The auditor said it relied on management’s representations and explanations regarding the nature and recoverability of these loans and the adequacy of the ECL provision.
EQMint Analysis
NCL Research’s Q1 numbers present a mixed picture.
The company has returned to profitability after a steep loss in the March quarter, which is a significant sequential improvement. But the 34% YoY decline in PAT and 14% fall in total income show that the underlying quarter was weaker than Q1 FY26.
The auditor’s comments around interest income and stressed loans also deserve close attention. For investors, the next few quarters will be important for assessing loan recoveries, credit-loss provisions and whether the company can sustain its return to profitability.
Current View
NCL Research has started FY27 with a ₹112.91 lakh profit, but earnings remain below the year-ago level. The sharp recovery from Q4 FY26 is encouraging, while the company’s loan book quality and recovery of outstanding advances remain key factors to watch.
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Disclaimer: This article is not an investment advice and is for educational purpose only.
