Kiran Vyapar Ltd Q1 FY26 – “Loans, Dividends, and the Mystery of the 0.28x Book Value”
1. At a Glance
Kiran Vyapar Ltd (KVL), founded in 1995, is a systemically important NBFC that basically runs a two-item thali: loans + investments. Current price: ₹219, Market Cap: ₹597 Cr, Book Value: ₹784 (yes, CMP is just 0.28x book, like a clearance sale nobody trusts). FY25 revenue: ₹112 Cr, PAT: ₹45.4 Cr, NPM: 52%. P/E: 13x, ROE: ~3% (low), Promoter holding: 75%.
Stock returns? –10% in 1 year, +14% in 3 years, +25% in 5 years. So basically, “neither multibagger nor wealth destroyer, just existing like that old family LIC policy.”
2. Introduction
If NBFCs were Bollywood characters, Bajaj Finance is Shah Rukh, Cholamandalam is Akshay Kumar, Shriram Finance is Ajay Devgn… and Kiran Vyapar is that side actor you’ve seen in 17 films but can’t recall the name.
The company lends (₹318 Cr disbursed in FY23) and invests (₹729 Cr in unquoted equity, prefs, venture funds, mutual funds). And boy, it loves investments: 83% of its revenue comes from lending & investing, only 17% from trading.
Its moat? Promoter holding of 75% under the Bangur family. Its problem? ROE of 3%—which is like buying a flat in Mumbai and renting it out for ₹6,000/month.
Readers, tell me: would you hold a company with 0.28x book value thinking it’s a hidden gem, or avoid it like a WhatsApp tip stock?
3. Business Model – WTF Do They Even Do?
KVL’s business model = “earn interest + earn dividends + book fair value gains.”
Lending arm: ₹318 Cr loans disbursed in FY23, to corporates & related parties.
Investment arm: ₹729 Cr in unquoted equity, VCs, prefs. This is 83% of assets.
Revenue mix FY23: Interest income (63%), Dividend (8%), Fair value gains (12%), Trading (17%).
Recent twist: they acquired Peepul Tree Capital Pte, Singapore for ₹100 Cr in Jan 2025. Suddenly this sleepy Kolkata-based NBFC now owns a Singapore investment vehicle. Not sure if this is strategic or just “Bangur-ji ne bola, kar lo.”
Think of KVL as that cousin who tells you “I’m into finance bro” but actually just trades in stocks and mutual funds.
4. Financials Overview – Quarterly
Source table
Metric
Q1 FY26
Q1 FY25
Q4 FY25
YoY %
QoQ %
Revenue
27.2 Cr
28.0 Cr
12.0 Cr
–3.9%
+127%
EBITDA
18.5 Cr
24.0 Cr
–7.0 Cr
–23%
Swing
PAT
16.4 Cr
33.0 Cr
–13.0 Cr
–51%
Swing
EPS (₹)
6.0
12.3
–4.7
–51%
Swing
Q1 FY26 story: revenue steady, profit halved YoY. QoQ swings look like crypto charts—negative last quarter, back to profit this quarter.
