According to the latest unaudited financial results approved by the Board of Directors on August 13, 2026, Garbi Finvest reported a net loss of ₹81.53 lakh in Q1 FY2027, marking a significant reversal from the net profit of ₹118.78 lakh recorded during the corresponding quarter of the previous financial year. The company's total income declined 17% to ₹98.69 lakh compared to ₹118.62 lakh in Q1 FY2026, primarily due to lower operational revenue and the absence of dividend income that contributed ₹5.33 lakh in the prior year.
The company's revenue from operations contracted sharply by 28% year-on-year to ₹45.65 lakh in Q1 FY2027, compared to ₹63.36 lakh in the corresponding quarter of the previous financial year. While profit on sale of investments remained relatively stable at ₹53.04 lakh (versus ₹49.93 lakh previously), it was insufficient to offset the drop in core operations. The company's total expenses surged 158% to ₹200.18 lakh from ₹77.92 lakh in Q1 FY2026, with depreciation and amortization jumping to ₹189.90 lakh from just ₹13.58 lakh in the previous year, now consuming nearly 95% of total expenses.
The independent auditors Kushal S Poonia & Co. issued a limited review report with specific qualifications regarding the company's compliance and accounting practices. The auditors noted that Garbi Finvest has not followed the Expected Credit Loss (ECL) model mandated under Ind AS 109 for financial instruments, and failed to implement Internal Financial Controls (IFC) as required by the Companies Act, 2013. Additionally, the company lacked necessary control design documentation and did not account for interest on all loan accounts, raising concerns about the completeness and accuracy of recorded revenue. These audit concerns highlight significant operational and compliance challenges facing the company.
The divergence between stable investment gains and collapsing operational revenue highlights a structural weakness in the company's core business model. With profit on sale of investments contributing over half of total income, the company appears increasingly dependent on capital markets activity rather than its primary non-banking financial activities. The sharp rise in depreciation costs, which now consume nearly 95% of total expenses, severely erodes profitability despite modest impairment charges. Historical stock returns show -29.53% over six months and -58.78% over five years, reflecting the challenging operating environment and investor concerns about the company's strategic direction and compliance issues.
