Financial Results Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26)

  • Total Income: ₹1,131.18 crore (Q2 FY26: ₹1,049.45 crore)
  • Interest Income: ₹1,121.66 crore (Q2 FY26: ₹1,043.17 crore)
  • Profit Before Tax: ₹347.22 crore (Q2 FY26: ₹331.58 crore)
  • Net Profit: ₹274.61 crore (Q2 FY26: ₹251.43 crore)
  • EPS (Basic & Diluted): ₹20.62 (Q2 FY26: ₹18.88)

Half-Yearly Performance (H1 FY27 vs H1 FY26)

  • Total Income: ₹2,227.51 crore (H1 FY26: ₹2,069.86 crore)
  • Net Profit: ₹542.43 crore (H1 FY26: ₹475.30 crore)
  • EPS (Basic & Diluted): ₹40.74 (H1 FY26: ₹35.70)

Key Financial Metrics

  • Net Worth (as at March 31, 2026): ₹5,98,040.45 lakh
  • Capital Adequacy Ratio (CRAR): 23.34%
  • Gross NPA: 0.90%
  • Net NPA: 0.43%
  • Provision Coverage Ratio: 52.82%
  • Liquidity Coverage Ratio: 100%

Board Meeting Details

The Board of Directors meeting was held on October 09, 2026, commencing at 03:20 PM and concluding at 05:30 PM. The Board approved the unaudited financial results based on the recommendation of the Audit Committee.

Documents Submitted

The following documents were enclosed with the filing:

1. Unaudited Standalone Financial Results with assets/liabilities statement and cash flows

2. Limited Review Report by Joint Statutory Auditors (M/s. Rao & Emmar and M/s. V K Ladha & Associates)

3. Additional disclosures under Regulation 52(4)

4. Nil Statement of Deviation/Variation under Regulation 32(1)

5. Statement of Utilization of Issue Proceeds for NCDs under Regulation 52(7)

6. Security Cover Certificate as on September 30, 2026

7. Related Party Transactions disclosure for H1 FY27

Key Operational Highlights

Asset Quality

  • Exposure to accounts classified as Standard consequent to implementation of resolution plan: ₹30,709.90 lakh as of September 30, 2026
  • Of the previous half-year's exposure (₹34,264.14 lakh), ₹650.77 lakh slipped into NPA during current half-year
  • Borrowers paid ₹2,903.47 lakh during current half-year

Dividend Distribution

The shareholders approved a final dividend of ₹8 per equity share (face value ₹2) for FY26 at the 39th AGM held on July 29, 2026, which was paid on August 3, 2026.

Debenture Redemptions

During H1 FY27, the company redeemed 8.45% CFHL Secured Redeemable Non-Convertible Debentures of ₹935 crore as per terms of issue.

Regulatory Compliance Matters

RBI Penalty

The Reserve Bank of India imposed a penalty of ₹2,70,000 on June 19, 2026, for non-compliance with certain provisions of Fair Practices Code directions. The penalty was remitted on June 22, 2026. Corrective measures were implemented effective April 1, 2026, including bifurcation of principal and interest in statements of account.

NHB Advisory Adjustment

Pursuant to NHB advisory dated July 24, 2026, the company reduced its AUM by ₹1.65 crore towards Demand Drafts cancelled prior to financial statement finalization, with no material impact on financial results.

Corporate Developments

ESOP Grants

The Nomination Remuneration and HR Committee approved grant of 32,435 options exercisable into equity shares to identified employees under CFHL ESOP Scheme 2024 at its meeting on June 05, 2026.

Share Allotment

During H1 FY27, the company allotted 466 equity shares of ₹2 each on exercise of options by employees.

Digital Transformation - Project Tejas

The company implemented Project Tejas, a ₹297-crore, seven-year enterprise digital transformation program. During Q2 FY27, the company rolled out the New LOS-LMS-LC Application developed by Pennant Technologies across all branches.

ERP Implementation

The company undertook phased implementation of an integrated ERP system between July 2026 to September 2026, with the last tranche migrated on September 30, 2026. Financial results for H1 FY27 were prepared based on data from source systems supplemented by automated compilation procedures. The migration process is under audit by two external firms.

Financial Position (Standalone)

Assets (as at September 30, 2026)

  • Loans: ₹42,96,823.22 lakh
  • Investments: ₹2,14,073.76 lakh
  • Property, Plant and Equipment: ₹10,925.01 lakh
  • Intangible Assets under Development: ₹7,137.58 lakh
  • Cash and Cash Equivalents: ₹349.13 lakh
  • Bank Balances: ₹30,348.90 lakh
  • Total Assets: ₹45,81,525.25 lakh

Liabilities (as at September 30, 2026)

  • Debt Securities: ₹8,09,710.69 lakh
  • Borrowings: ₹30,74,200.52 lakh
  • Deposits: ₹23,870.13 lakh
  • Total Liabilities: ₹45,81,525.25 lakh

Equity

  • Paid-up Equity Share Capital: ₹2,663.32 lakh (face value ₹2 per share)
  • Other Equity: ₹6,39,050.81 lakh

Cash Flow Statement (H1 FY27)

  • Net Cash from Operating Activities: (₹679.92 crore)
  • Net Cash from Investing Activities: (₹81.21 crore)
  • Net Cash from Financing Activities: ₹763.26 crore
  • Net Increase in Cash: ₹2.13 crore

Auditor's Review

The limited review was conducted by joint statutory auditors M/s. Rao & Emmar and M/s. V K Ladha & Associates, who issued an unmodified conclusion. The review emphasized matters related to ERP implementation and treatment of Deferred Tax Liability on Special Reserves.

Related Party Transactions (H1 FY27)

Key transactions included:

  • Remuneration to Managing Director & CEO: ₹165.56 lakh
  • Remuneration to CFO: ₹31.51 lakh
  • Remuneration to Company Secretary: ₹17.41 lakh
  • Sitting fees to independent directors: ₹23.10 lakh
  • Interest paid to Canara Bank (Promoter): ₹854.46 lakh
  • Interest earned from Canara Bank: ₹98.23 lakh
  • Term loans outstanding with Canara Bank: ₹3,02,503.19 lakh
  • Deposits with Canara Bank: ₹30,000.00 lakh

Compliance Certificates

  • Security Cover Certificate: Shows adequate coverage for NCDs
  • Covenant Compliance Certificate: Confirms compliance with all debenture covenants
  • Nil Deviation Statements: No deviation in utilization of funds raised through shares or NCDs