Rita Finance posts 15% profit growth as taxes eat into a strong revenue jump
Revenue climbed 29% and pre-tax profit 42%, but a higher tax bill left net profit growth at 15%.
— 2 earlier stories on Rita Finance and Leasing Ltd. →What's new
- Revenue from operations grew 29% to ₹132.59 lakhs, almost all from interest income.
- Pre-tax profit surged 42%, but higher taxes left net profit growth at 15%.
- Total expenses were trimmed marginally to ₹40.55 lakhs, and EPS rose to ₹0.69.
Why this matters
The gap between 42% pre-tax growth and 15% net growth is the story. The tax burden is outpacing the business expansion for this nano-cap NBFC.
What we're watching
- Whether the revenue growth rate is sustainable or a one-year spike.
- The tax line in the next filing to see if this is the new normal.
- Any shift in the balance sheet that could explain the tax jump.
The full read
Rita Finance and Leasing posted a 15% rise in net profit to ₹69.48 lakhs for FY26. Revenue from operations, almost entirely interest income, jumped 29% to ₹132.59 lakhs. Pre-tax profit was up a steeper 42%. What bridged the gap between 42% and 15% was a higher tax bill. The company also trimmed total expenses to ₹40.55 lakhs. For a nano-cap NBFC with a ₹17 crore market value, the results are straightforward. The auditor's opinion is unmodified. The growth is real. But the bottom line didn't keep pace because the tax line moved against them. Hardly a crisis, but the divergence is worth a line item in the next filing.
Questions answered
- Why did net profit grow only 15% when revenue jumped 29%?
- Profit Before Tax grew 42%, but higher tax expenses ate into that gain. The result is a net profit increase of 15%, well below the topline growth.
- What is driving Rita Finance's revenue growth?
- The company's total revenue, which is almost entirely interest income, rose to ₹132.59 lakhs from ₹102.84 lakhs. That's a 29% increase year-on-year.
- How did the company manage its costs?
- Total expenses were trimmed marginally to ₹40.55 lakhs. That, combined with higher revenue, drove the 42% pre-tax profit increase before taxes moderated the outcome.
- Is the audit opinion clean?
- Yes. The statutory auditors issued an unmodified opinion on the financial results.
Rita Finance and Leasing Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
All notes on RFLL →- 27 May 2026 · 5:25 PM IST Rita Finance posts 15% profit growth as taxes eat into a strong revenue jump
- 48d ago Rita Finance and Leasing approves FY26 results
- 48d ago Rita Finance and Leasing gets a SEBI warning for hiding RBI feedback