Whalesbook
📉 The Financial Deep Dive
The Numbers:
Garbi Finvest Limited has announced dismal financial results for the quarter and nine months ended December 31, 2025. For Q3 FY26, Total Income stood at ₹1.12 Cr, a significant decline of 40.10% year-on-year (YoY) from ₹1.86 Cr in Q3 FY25. Profit After Tax (PAT) plummeted by 86.87% YoY to ₹0.16 Cr from ₹1.25 Cr. Basic Earnings Per Share (EPS) mirrored this fall, dropping 86.79% YoY to ₹0.14 from ₹1.06.
Sequentially (QoQ), Total Income saw a decline of 44.19% to ₹1.12 Cr from ₹1.09 Cr in Q2 FY26. However, Profit Before Tax (PBT) showed a modest increase of 11.49% QoQ to ₹0.35 Cr. Despite this, PAT experienced a sharp 86.44% decline QoQ to ₹0.16 Cr from ₹1.20 Cr.
For the nine months ended December 31, 2025, Total Income declined 29.57% YoY to ₹3.00 Cr. PAT fell 30.33% YoY to ₹1.37 Cr, and Basic EPS dropped 29.94% YoY to ₹1.17.
The Quality:
The steep decline in PAT compared to revenue suggests significant margin compression or substantial expense increases. A notable expense was the 'Impairment on financial instruments' of ₹1.77 Cr in 9M FY26. Furthermore, the deferred tax charge escalated dramatically to ₹71.37 Cr in 9M FY26 from ₹0.35 Cr in 9M FY25, significantly impacting the reported PAT. No exceptional items were reported.
The Grill:
The most alarming aspect of these results is the statement from the statutory auditors in their Limited Review Report. They explicitly noted: "We draw attention to the fact that the Company has not accounted for interest on all loan accounts. Accordingly, we are unable to comment on the completeness and accuracy of the revenue recorded in the books of account." This is a critical accounting deficiency that directly undermines the reliability of the company's reported revenue figures and overall financial health. This disclaimer from the auditors is a major red flag, raising serious questions about governance and financial transparency.