DMI Finance Reports Return To Profit In Q4 FY26 Despite 33% Income Decline

DMI Finance Private Limited reported a consolidated turnaround in profitability during Q4 FY26 even as income declined from the year-ago period. Total income for the January-March 2026 quarter stood at ₹422.1 crore, down 33% from ₹632.9 crore in Q4 FY25. The company posted a net profit of ₹44.6 crore during the quarter against a net loss of ₹80.6 crore a year earlier. Profit before tax came in at ₹59.2 crore compared with a loss before tax of ₹107.1 crore in the corresponding quarter last year.

Sequential And Annual Growth

On a sequential basis, total income increased 2.9% from ₹410.1 crore reported in Q3 FY26. However, net profit declined 52% from ₹93.6 crore in the previous quarter. Finance costs fell to ₹41.7 crore in Q4 FY26 from ₹144.7 crore a year ago, while impairment on financial instruments narrowed sharply to ₹82.6 crore from ₹365.3 crore. Employee benefit expenses rose to ₹51.5 crore during the quarter from ₹47.1 crore in Q4 FY25. The company also reported lower fee and commission income compared with the previous year.

What Drove The Numbers

The company said it refined its expected credit loss methodology during FY26 by incorporating forward-looking macroeconomic variables and scenario-based assumptions, which affected provisioning levels. DMI Finance also transferred its technology division to subsidiary Glimmer Technologies Private Limited during the year for ₹24.4 crore through a slump-sale transaction settled via equity shares. Basic earnings per share for Q4 FY26 stood at ₹0.60 against a negative EPS of ₹1.08 in the year-ago quarter.

Full-Year Performance

For FY26, total income declined 44% to ₹1,737 crore from ₹3,114 crore in FY25. Net profit for the year rose sharply to ₹106.6 crore from ₹5.3 crore in the previous financial year. Gross non-performing assets stood at 4.84% at the end of March 2026 compared with 4.71% a year earlier, while net NPA ratio improved to 2.57% from 2.69%. The company remained classified as a middle-layer NBFC under the RBI’s scale-based regulatory framework.

Disclaimer: This report is based on audited financial results filed by the company and does not constitute investment advice.