Gyftr Ltd Reports Strong FY26 Profit Post-NBFC Transition Amidst Auditor Concerns

Gyftr Ltd's consolidated revenue reached ₹396.36 crore, with a profit of ₹21.81 crore for the year ended March 31, 2026.

Reader Takeaway: Profit surge due to business model change, but auditor qualifications and litigation pose risks.

What just happened

Gyftr Limited, formerly LKP Finance Limited, has successfully transitioned from a Non-Banking Financial Company (NBFC) to a gift voucher and rewards business. This strategic shift has led to a significant surge in profitability, with consolidated profit for the financial year ended March 31, 2026, reaching ₹21.81 crore, a substantial increase from ₹1.82 crore in the previous year. Revenue from operations stood at ₹396.36 crore.

Why this matters

The improved financial performance reflects the success of the company's new business model. The transition, marked by RBI's approval to surrender its NBFC registration, signifies a new operational phase for Gyftr. The substantial rise in Earnings Per Share (EPS) to ₹3.16 from ₹0.25 further underscores this positive development for shareholders.

The backstory

Gyftr Limited was operating as an NBFC, LKP Finance Limited. The company obtained approval from the Reserve Bank of India (RBI) on March 20, 2026, to surrender its Certificate of Registration as an NBFC. This paved the way for its current focus on the gift voucher and rewards sector.

What changes now

With the business model transformation complete, Gyftr is now primarily focused on the gift voucher and rewards business. This has also led to a reclassification in its financial reporting, moving from Division III to Division II of Schedule III of the Companies Act, 2013.

Risks to watch

The statutory auditors have issued a qualified opinion on the financial results. This is due to two key issues:

• The company could not obtain balance confirmations from two lenders, amounting to ₹35.97 crore.
• Ongoing litigation related to legacy borrowings of ₹21.22 crore from Kingfisher Finvest India Limited, with a garnishee order claiming ₹25 crore. The company has contested this, deposited ₹11.26 crore under protest, and faced attachment of mutual fund investments worth ₹6.14 crore.

Peer comparison

(No specific peer comparison data available in the filing.)

Context metrics (time-bound)

• Consolidated Revenue (FY26): ₹396.36 crore
• Consolidated Profit (FY26): ₹21.81 crore (vs ₹1.82 crore in FY25)
• Basic EPS (FY26): ₹3.16 (vs ₹0.25 in FY25)
• Unverified Lender Balances: ₹35.97 crore
• Legacy Litigation Claim: ₹25 crore (related to ₹21.22 crore borrowing)

What to track next

Investors should closely monitor the developments in the ongoing litigation before the Debt Recovery Appellate Tribunal (DRAT), Chennai, and any further clarification on the unverified lender balances. The company's ability to successfully scale its gift voucher and rewards business while managing legacy liabilities will be crucial.