Viji Finance Profit Rises 33% on a 211% Revenue Surge
The small NBFC's revenue multiplied, but profit growth was modest as a surge in fee income drove the top line while costs followed.
Viji Finance reported a 211% sequential jump in revenue for Q2 FY27, yet profit grew only 33%. The quarter marks a sharp turnaround from a loss a year ago, fueled by a strategic shift toward fee-based income.
For a small NBFC like Viji Finance, a single quarter can redraw the business map. The September quarter did just that, with revenue multiplying but profit struggling to keep pace, revealing a strategic pivot in motion.
Revenue soared to ₹2.77 crore, up 211% from the previous quarter and 378% from a year ago. Net profit reached ₹1.51 crore, a solid 33% sequential rise and a sharp turnaround from a ₹0.1 crore loss in Q2 FY26. The net profit margin settled at 54.6%, a massive recovery from -16.8% a year earlier.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 | PreviousQ1 FY27 | Same quarter LYQ2 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 2.77YoY +378% | 0.89 | 0.58 |
| Profit (₹ Cr) | 1.51YoY +1610% | 1.14 | -0.10 |
| Net Profit Margin (%) | 54.6YoY +425% | – | -16.8 |
The fee income engine
The explosive revenue growth wasn't from traditional lending. According to a report by ScanX, fees and commission income accounted for ₹1.55 crore, or over 56% of total revenue. A year ago, this line item was just ₹0.33 lakh. This suggests a deliberate move beyond interest income, possibly into loan sourcing or other financial services.
Interest income also doubled year-on-year to ₹1.22 crore, as the loan book expanded aggressively. ScanX notes loans on the balance sheet grew to ₹52.07 crore by September-end, up from ₹29.43 crore at the end of the last fiscal year.
Why profit didn't match the pace
While revenue tripled sequentially, profit grew by just a third. Total expenses rose in step with the business ramp-up. The modest profit growth indicates that the new, high-margin fee business still carries its own costs, and the core lending expansion may be pressuring operating leverage in the near term.
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· VIJIFIN
(BSE)
ISIN: INE159N01027
The company's liquidity profile shows a stark contrast. The payload shows a current ratio of 0.03, which seems alarming. However, other sources like The Economic Times report a much higher figure of 5.25, suggesting the calculation depends heavily on the classification of its loan assets, which are its primary business.
Fueling growth with fresh capital
This expansion is being funded by equity. The company has been actively converting warrants into shares, raising capital for growth. ScanX reports equity share capital rose to ₹23.10 crore following preferential allotments, and financing activities generated ₹20.91 crore in the half-year, largely from equity issuance.
This capital is being deployed into the loan book rather than sitting idle, a positive sign for future interest income. The company has also sought shareholder approval to increase its authorized share capital from ₹30 crore to ₹75 crore, as noted by Whalesbook, signaling plans for further fund-raising to support growth.
Key Points
- Revenue skyrocketed 378% year-on-year to ₹2.77 crore, driven predominantly by a new stream of fees and commission income.
- Net profit turned positive at ₹1.51 crore, a strong recovery from a loss, but grew at a slower 33% pace quarter-on-quarter.
- The loan book expanded rapidly to over ₹52 crore, funded by recent equity capital raises through warrant conversions.
- The company is trading at a significant valuation premium, with a P/E of 140.9 against an industry average of 21.9, pricing in aggressive future growth.
Hexa Perspective
The quarter confirms Viji Finance is executing a pivot, using fresh capital to build a loan book while simultaneously developing a high-margin fee business. The success of this two-pronged strategy is evident in the revenue line, but profitability has yet to reflect the same operational leverage.
The key question is sustainability. Can the fee income stream be replicated, and will the growing loan book maintain asset quality? The current valuation embeds a flawless execution of this growth plan, leaving little room for missteps in a sector where small NBFCs face intense competition and regulatory scrutiny.
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