Tirupati Fincorp Limited: Q3 FY26 Financials Under Shadow of Severe Regulatory Non-Compliance
The Numbers:
Tirupati Fincorp Limited (TFL) announced its unaudited financial results for the quarter and nine months ended December 31, 2025. For Q3 FY26, the company reported a Net Loss of ₹260.26 Lakhs, marking a YoY improvement from a Net Loss of ₹669.20 Lakhs in Q3 FY25. Total Income for the quarter saw a drastic YoY decrease of approximately 92.61%, falling to ₹278.06 Lakhs from ₹3,767.57 Lakhs in Q3 FY25, largely due to a sharp decline in Interest Income. Revenue from operations also declined YoY by about 30.88% in Q3 FY26.
Over the nine months ended December 31, 2025, Revenue from Operations grew YoY by 92.97% to ₹1,150.91 Lakhs. However, Total Income for the same period decreased YoY by 79.99% to ₹2,101.99 Lakhs. The net loss for the nine-month period reduced YoY to ₹138.60 Lakhs from ₹735.90 Lakhs.
The Grill & Red Flags:
The company's financial performance is overshadowed by severe operational and compliance concerns raised by its statutory auditors, JCR & CO. LLP. The most critical issue is TFL's continued financing activities despite its NBFC Certificate of Registration being cancelled by the RBI effective April 30, 2019, and a specific RBI order dated May 19, 2025, directing it to cease operations immediately. Although a board resolution was passed on August 11, 2025, to stop NBFC operations, the auditors report fresh business was entered into.
Further compounding the concerns, auditors were unable to verify the correctness of the interest expense due to the unavailability of loan documents for loans given and taken during the quarter. Gaps in internal controls for the lending business were also noted, requiring strengthening. The company's website was also found to be non-compliant with SEBI (LODR) Regulations, 2015.
The company is awaiting the outcome of its six-month extension request to the RBI for compliance.
Risks & Outlook:
The primary risk for Tirupati Fincorp is severe regulatory action from the RBI, which could include further penalties or winding up proceedings, given the direct violation of its cessation order. The inability to verify interest expenses and weak internal controls also pose significant financial and operational risks. The future viability of the company as an NBFC is highly uncertain, pending the RBI's decision on its compliance extension. Investors should closely monitor the RBI's response and any further disclosures regarding the company's operational status and financial controls. The significant reduction in segment assets for financing activities suggests a planned or forced downsizing of its core business.