At a Glance
Comfort Fincap (CFL) posted a Q1 FY26 net profit of ₹2.67 Cr, up 38% YoY, on income of ₹3.83 Cr (+9% YoY). For an NBFC with a market cap of just ₹78 Cr, that’s not bad—think of it as the David of finance trying to play in a world of Goliaths like Bajaj Finance. Promoter holding nudged up to 54.6%, a confidence signal. The P/E of 13.4 is modest, but growth is crawling like a Windows 98 update.
Introduction
Comfort Fincap isn’t a Bajaj, Muthoot, or even a Sundaram. It’s a small NBFC that thrives in a niche—loans against securities. Their clientele? Investors who need leverage for IPOs, ESOPs, or a speculative fling in the markets.
Q1 FY26 results show profitability is improving, but the overall scale remains tiny. For investors, CFL is the underdog that occasionally delivers a surprise.
Business Model (WTF Do They Even Do?)
- Type: Non-Deposit Taking NBFC
- Core Offering: Loans against securities (shares, bonds, IPO funding)
- Revenue Streams:
- Interest income from secured lending
- Capital market trading gains (when markets are kind)
Unlike full-fledged NBFCs that offer personal loans, vehicle finance, and gold loans, CFL sticks to capital-market-linked credit—a risky yet potentially lucrative niche.
Financials Overview
Q1 FY26 performance:
- Total Income: ₹3.83 Cr (+9% YoY)
- Operating Profit: ₹2.93 Cr (OPM 76.5%)
- PAT: ₹2.67 Cr (+38% YoY)
- EPS: ₹0.31
Commentary: Margins remain sky-high (>70%) due to lean operations, but growth is sluggish.
Valuation
- CMP: ₹8.91
- EPS (TTM): ₹0.82
- P/E: 13.4
- P/B: 0.82
Fair Value Range: ₹8 – ₹12.
The stock trades below book value, making it a “value trap or value pick” depending on your optimism.
What’s Cooking – News, Triggers, Drama
- Q1 PAT +38% YoY – margins shining, scale not so much.
- Board Approved – borrowing limit hike & private placement plan.
- Dividend – ₹0.10/share (5%) for FY25.
- Growth – Needs aggressive lending expansion to stay relevant.
Balance Sheet
| (₹ Cr) | Mar 2025 |
|---|---|
| Total Assets | 110.6 |
| Total Liabilities | 40.1 |
| Net Worth | 70.7 |
| Borrowings | 21.9 |
Remarks: Clean balance sheet, low leverage. Auditor’s vibe: “Small, safe, but not scaling.”
Cash Flow – Sab Number Game Hai
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 27.0 | 4.2 | -19.7 |
| Investing | -0.01 | -0.7 | 0.5 |
| Financing | -28.5 | -4.2 | 19.9 |
Remarks: Cash flows are volatile, like a penny stock trader’s portfolio.
Ratios – Sexy or Stressy?
| Metric | Value |
|---|---|
| ROE | 7.2% |
| ROCE | 9.9% |
| P/E | 13x |
| PAT Margin | 72% |
| D/E | 0.31 |
Remarks: Profit margins great, returns modest, valuation fair.
P&L Breakdown – Show Me the Money
| (₹ Cr) | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 14.7 | 13.9 | 14.3 |
| EBITDA | 11.5 | 9.9 | 10.3 |
| PAT | 4.9 | 5.1 | 5.8 |
Remarks: Stable revenue, slight PAT growth—steady but uninspiring.
Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Bajaj Finance | 73,107 | 17,425 | 32 |
| Shriram Finance | 43,778 | 8,508 | 14 |
| Sundaram Finance | 8,512 | 1,854 | 28 |
| Comfort Fincap | 14 | 5.8 | 13 |
Remarks: CFL is a speck in the NBFC universe—growth is key to any rerating.
Miscellaneous – Shareholding, Promoters
- Promoter Holding: 54.6% (slightly up)
- FII: None
- DII: None
- Public: 45.4%
Promoter confidence increasing—good sign, but they need to scale operations.
EduInvesting Verdict™
Past Performance
CFL has shown moderate growth, strong margins, and disciplined balance sheet. However, its small size keeps it off most investors’ radar.
SWOT Analysis
- Strengths: High OPM, low leverage, promoter skin in the game.
- Weaknesses: Low ROE, slow revenue growth.
- Opportunities: IPO financing boom, NBFC sector tailwinds.
- Threats: Regulatory tightening, competition from larger NBFCs.
Final Word
Comfort Fincap’s Q1 FY26 results show profitability improving, but without meaningful scale, it remains a micro-cap story. At P/B <1, it’s tempting—but only for those who like high-risk, small-cap bets.
Written by EduInvesting Team | 29 July 2025SEO Tags: Comfort Fincap, Q1 FY26 Results, NBFC Stocks India, Microcap Financial Services, Loans Against Securities
