Worth Investment & Trading Co Ltd (538451)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Worth Investment's revenue was ₹6.5 Cr (+426.2% year on year, -21.0% on the previous quarter), and net profit ₹1.3 Cr (+59.6% year on year); the operating margin was 96.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹6.5 | +426.2% | -21.0% |
| Operating profit | ₹6.3 | +456.6% | -2.9% |
| Net profit | ₹1.3 | +59.6% | -0.5% |
| EPS (₹) | 0.04 | +75.0% | -12.5% |
| Operating margin | 96.4% | — | — |
📢 Recent Corporate Announcements
Worth Investment & Trading Co Ltd reported a significant YoY revenue jump to ₹6.53 Cr in Q1 FY26, up from ₹1.24 Cr in the previous year. Net profit followed suit, rising 60.6% YoY to ₹1.29 Cr, though it remained flat on a QoQ basis compared to March 2026. A critical observation is the massive spike in finance costs to ₹4.54 Cr (from ₹0.04 Cr YoY), indicating a heavily leveraged expansion of the loan book. The company continues to operate with high concentration risk, with the majority of its assets deployed as loans to a single sister concern.
- Revenue from operations increased 427% YoY to ₹6.53 Cr from ₹1.24 Cr.
- Net profit grew 60.6% YoY to ₹1.29 Cr, though it slightly declined from ₹1.30 Cr in the preceding quarter.
- Finance costs surged to ₹4.54 Cr, representing 69.5% of the total revenue for the quarter.
- Total expenses rose to ₹4.78 Cr from ₹0.15 Cr in the same period last year.
- Earnings Per Share (EPS) for the quarter stood at ₹0.035, up from ₹0.02 YoY.
Worth Investment & Trading Co Ltd reported a sharp increase in Q1 FY27 revenue to ₹6.53 Cr, up from ₹1.24 Cr in the year-ago period. Net profit grew 60% YoY to ₹1.29 Cr, though it remained flat sequentially compared to ₹1.30 Cr in Q4 FY26. A significant concern is the surge in finance costs to ₹4.54 Cr from just ₹0.04 Cr YoY, reflecting the company's high leverage. The company's operations remain entirely focused on interest income, with a high concentration risk involving sister concerns.
- Revenue from operations increased 427% YoY to ₹6.53 Cr from ₹1.24 Cr.
- Net profit for the quarter stood at ₹1.29 Cr, a 60% increase over ₹0.81 Cr in Q1 FY26.
- Finance costs escalated dramatically to ₹4.54 Cr compared to ₹0.04 Cr in the same quarter last year.
- Total expenses rose to ₹4.78 Cr from ₹0.15 Cr YoY, primarily driven by interest costs.
- Earnings Per Share (EPS) for the quarter was ₹0.035, up from ₹0.02 YoY.
Worth Investment & Trading Co Ltd has scheduled a board meeting for August 13, 2026, to approve unaudited financial results for the quarter ended June 30, 2026. The company currently operates with a high debt-to-equity ratio of 6.64 and a TTM revenue of ₹13 Cr. A critical factor for investors remains the company's loan book concentration, where 94.28% of total assets (₹60.56 Cr) are deployed as loans, primarily to a single sister concern, Aarey Drugs and Pharmaceuticals Limited.
- Board meeting scheduled for August 13, 2026, to approve Q1 FY27 results.
- Trading window closed from July 01, 2026, until 48 hours post-announcement.
- Company reported TTM PAT of ₹4 Cr against a market cap of ₹132 Cr.
- Loan book concentration risk remains high at 94.28% of total assets.
Financial Performance
Revenue Growth by Segment
Total assets grew by 5.76% YoY from INR 60.73 Cr to INR 64.23 Cr, primarily driven by a 9.28% increase in the loan book which reached INR 60.56 Cr. Segment-specific revenue growth was not disclosed.
Geographic Revenue Split
100% of operations and revenue are based in India, specifically Maharashtra, with the registered office located in Thane.
Profitability Margins
The company reported zero cash losses for the current and immediately preceding financial year. Net profitability is indicated by a current tax liability of INR 42.77 lakhs, which increased 18.2% YoY from INR 36.18 lakhs.
Capital Expenditure
The company owns zero Property, Plant, and Equipment (PPE) or intangible assets as of March 31, 2025, resulting in zero historical or planned CapEx for manufacturing facilities.
Credit Rating & Borrowing
Total borrowings stood at INR 21.57 Cr as of March 31, 2025, a reduction of 9.38% from INR 23.81 Cr in 2024. Credit ratings and specific interest rate percentages were not disclosed.
Operational Drivers
Raw Materials
Not applicable as the company operates as a Non-Banking Financial Company (NBFC).
Capacity Expansion
Not applicable for financial services; however, the company expanded its equity base by 269.6% through a preferential allotment of 36,98,680 shares at INR 24.50 per share on November 29, 2023.
Strategic Growth
Expected Growth Rate
5.76%
Growth Strategy
Growth is achieved through strategic lending to group companies and sister concerns. The company raised capital via a preferential allotment of 36.98 lakh shares at INR 24.50 each to fund its Non-Banking Financial Services business and expand its loan portfolio, which grew 9.28% YoY.
Products & Services
Non-banking financial services including demand loans, corporate advances, and strategic financial investments.
Brand Portfolio
Worth Investment & Trading Co. Limited.
Strategic Alliances
Maintains a significant lending relationship with sister concern Aarey Drugs and Pharmaceuticals Limited.
External Factors
Industry Trends
The NBFC industry is seeing increased regulatory focus on digital audit trails and reporting transparency. The company is currently lagging in technology adoption, specifically regarding Rule 11(g) audit trail features.
Competitive Landscape
Competes with other small-cap NBFCs and private lenders in the Indian corporate credit market.
Competitive Moat
The company's moat is built on captive group lending and relationship-based financing, which ensures a steady deployment of capital but increases concentration risk.
Macro Economic Sensitivity
Highly sensitive to RBI interest rate cycles; a 1% increase in borrowing costs would impact the margins on its INR 21.57 Cr debt.
Consumer Behavior
Corporate demand for flexible, demand-based credit remains the primary driver for the loan book.
Geopolitical Risks
Low direct impact due to domestic focus on Indian corporate lending.
Regulatory & Governance
Industry Regulations
Subject to NBFC regulations under the Companies Act 2013 and RBI norms. The company was found non-compliant with Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014, as its accounting software lacked a mandatory audit trail (edit log) feature throughout FY25.
Taxation Policy Impact
The company is subject to Indian corporate tax, with a current tax liability of INR 42.77 lakhs for FY25.
Legal Contingencies
The company has INR 0 in pending litigations that would impact its financial position as of March 31, 2025.
Risk Analysis
Key Uncertainties
Regulatory risk is high due to the lack of an audit trail feature in accounting software, which could lead to penalties under Rule 11(g). Potential impact is estimated at 5-10% of administrative costs if compliance upgrades are mandated.
Geographic Concentration Risk
100% of assets and revenue are concentrated in Maharashtra, India.
Third Party Dependencies
Critical dependency on Aarey Drugs and Pharmaceuticals Limited for the servicing and repayment of 94.28% of the company's total assets.
Technology Obsolescence Risk
High risk of technical non-compliance; the auditor noted the absence of an edit log facility in the company's accounting software for all relevant transactions.
Credit & Counterparty Risk
Credit exposure is primarily to sister concerns; the quality of receivables is tied to the financial health of the group's pharmaceutical business.
