Shivansh Finserve (SHIVA) Q2 FY27 Profit Rises on a Shrinking Core Business
The NBFC's Q2 FY27 profit grew 350% sequentially, but its operating revenue fell 83% year-on-year as other income drove the bottom line.
Shivansh Finserve reported a quarterly profit of ₹0.36 crore, a sharp sequential jump. However, this came on a revenue base that collapsed 83% from last year, with other income accounting for the bulk of earnings.
For a non-banking finance company, the core business is lending. Shivansh Finserve’s latest quarter shows that business has nearly vanished, with operating revenue down 83% from last year. Yet profit still rose sharply, a paradox explained by what is not lending.
The numbers tell two different stories. Year-on-year, revenue collapsed from ₹2.6 crore to ₹0.44 crore, while profit fell 35% to ₹0.36 crore. Sequentially, profit jumped 350% from a low base of ₹0.08 crore.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 0.44 | 0.22 |
| Profit (₹ Cr) | 0.36 | 0.08 |
The profit that wasn't from lending
A Flash Finance analysis of the filing notes that 64% of pre-tax profit came from other income and one-off items. Other income surged 85% year-on-year to ₹0.31 crore, now making up 41% of total income. With interest expense at zero, the profit margin looks robust but is detached from the company's stated business.
This structural shift follows high-level exits. The CFO and a whole-time director resigned in recent months, as did the statutory auditor. The company now operates with negligible promoter holding, as per a September clarification to the BSE.
A pivot through acquisitions
Management is attempting a pivot. The board has approved evaluating acquisitions of Startech Infralogistics and Peepal Mining & Logistics, according to a ScanX report. It also seeks to increase authorized share capital and borrowing limits to fund this inorganic growth.
For now, the core lending book appears dormant. The company's trailing-twelve-month net profit margin is a high 48%, but that reflects an income mix dominated by other sources, not interest from loans.
Key Points
- Operating revenue fell 83% year-on-year, indicating the core lending business has sharply contracted.
- A 350% sequential profit jump was driven by other income, which contributed 64% of pre-tax profit according to Flash Finance.
- Management is pursuing strategic acquisitions in logistics and mining to shift the business model away from traditional NBFC activities.
- Corporate governance remains in flux with recent resignations of key managerial personnel and the statutory auditor.
Hexa Perspective
The quarter confirms Shivansh Finserve is in transition, not recovery. The high profit margin is a function of a shrunken cost base and non-operational income, not a revival of lending. The planned acquisitions signal a strategic overhaul, but they carry execution risk and dilute the financial-services focus. Investors are essentially betting on the success of these yet-to-be-finalised deals, as the existing NBFC model shows no signs of life. The stock’s 42% one-year return seems disconnected from these fundamental pressures.
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