NCL Research and Financial Services shares hit the 5% upper circuit limit of ₹0.72 on BSE on Friday, August 14, 2026, defying weak market sentiment. The stock opened flat at ₹0.69 and jumped 4.3% to reach the upper price band during the session. According to market reports, the penny stock under ₹1 has demonstrated remarkable resilience, hitting a 52-week high of ₹0.87 on July 27 after recovering from a 52-week low of ₹0.39 on March 17. Year-to-date, the stock has jumped 44%, while it has surged 57% over the last month, as per BSE data. The stock extended gains for the second consecutive session, rising 8.5% overall in these two days.
NCL Research and Financial Services achieved a remarkable financial turnaround in Q1 FY2027, posting a net profit of ₹1.13 crore compared to a loss of ₹5.59 crore in the preceding quarter. The company's provisional financial results for the quarter ended June 30, 2026, showed a profit of ₹1.70 crore year-on-year, demonstrating sustained recovery from previous challenging periods. The Mumbai-based financial services firm's profitability was driven by a normalization of credit costs rather than organic growth in lending volumes, with the most impactful factor being the drastic reduction in impairment charges and absence of large-scale bad debt write-offs.
The company's total revenue from operations stood at ₹1.67 crore for Q1 FY2027, compared to ₹1.82 crore in the same quarter last year and ₹0.28 crore in the preceding quarter. Interest income during the quarter came at ₹1.7 crore, compared to ₹1.8 crore year-on-year and ₹0.28 crore quarter-on-quarter. Additionally, the firm recorded other income of ₹55.45 lakh, primarily driven by a ₹52.65 lakh profit from futures and options (F&O) trading, contrasting with a ₹54.63 lakh loss in the same segment during the previous quarter. Total income reached ₹222.07 lakh compared to a loss of ₹26.23 lakh in the preceding quarter.
Total expenses for Q1 FY2027 were ₹73.44 lakh, representing a substantial decrease from ₹660.28 lakh incurred in the preceding quarter. This reduction was largely attributed to the absence of significant bad debt write-offs and lower expected credit losses (ECL). The company's ECL provision stood at ₹37.29 lakh in Q1 FY2027, compared to a massive ₹398.74 lakh provision alongside ₹134.59 lakh in bad debts written off in the prior quarter. Employee benefit expenses were ₹16.95 lakh, while other operating expenses amounted to ₹22.44 lakh, demonstrating effective cost management during the recovery period.
In an exchange filing on August 14, 2026, NCL Research and Financial Services announced it has received in-principle approval from BSE for its proposed rights issue. On February 23, 2026, the company's board approved raising funds through a rights issue of shares with face value of ₹1 for ₹50 crore. Additionally, the company announced a strategic entry into the high-growth digital personal loan business on July 29, 2026, leveraging technology-driven underwriting, digital onboarding, data analytics and efficient risk management processes to build a scalable lending platform while maintaining prudent credit standards. The stock's strong performance comes against a backdrop of broader market weakness, as the Sensex declined 0.50% during the session when NCL Research hit its upper circuit.
