Hi. As you start exercising, your muscle starts building up and that causes a gain in weight, this counters the weight loss
which occurs due to fat burn and loss of body water. The important thing to note is that this happens only initially, say for 1-2 months maximum, later, if you maintain a good diet control along with exercise, your weight loss will be better than before as also your BMR would have increased due to your exercise and more muscle mass, so that will help you shed more calories even when you are resting. Also, exercise will help in inch loss even at the same weight, so it will make you look slimmer and well toned at the same weight. My advice is to continue your diet regimen as it is helping you and you can add a moderate amount of exercise to it to facilitate your weight loss (eg 1 hr of exercise 3-4 times a week). Your aim should be to obtain weight loss by a healthy diet regimen and exercise mainly for toning up and inch loss.