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Awaiting price reaction for this filing.
Paragon Finance reported its Q2 FY26 results, with net profit rising to Rs. 56.27 lakhs (up ~33% YoY from Rs. 42.32 lakhs) on total income of Rs. 151 lakhs (up ~43% YoY). For the half-year (H1 FY26), net profit climbed to Rs. 196 lakhs (up ~37% YoY) and total income rose to Rs. 370.62 lakhs (up ~41% YoY), translating to EPS of Rs. 4.61. The income growth was largely driven by a sharp jump in 'other income' (Q2: Rs. 134 lakhs vs nil a year ago), while core interest income actually declined ~13% YoY. The statutory auditor (Mandawewala & Co.) issued an unqualified limited review report with no qualifications or emphasis of matter.
Strong headline profit and revenue growth look positive, but the jump is propped up by non-core 'other income' rather than lending activity, which shrank. Investors should watch the sustainability of this income. Additionally, operating cash flow turned negative (Rs. -7.41 lakhs in H1 vs positive Rs. 122.25 lakhs for FY25), and cash balances dropped sharply, which is a soft signal worth monitoring.