CSL Finance Limited has received board approval for the private issuance of Non-Convertible Debentures (NCDs) worth ₹150 crore. The board meeting held on March 18, 2026, formally approved this significant capital raising initiative under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Meeting Outcome

The Board of Directors, in their meeting that commenced at 12:30 p.m. and concluded at 01:30 p.m., approved the issuance of non-convertible debentures of various types on a private placement basis. The company has been authorized to issue these instruments in one or more tranches or series up to an aggregate limit of ₹150 crore.

Regulatory Compliance and Listing

The NCD issuance has been structured to comply with SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company plans to list these debentures on BSE Limited, providing liquidity options for investors.

Strategic Capital Structure

The board has authorized the Management Committee, constituted on February 12, 2020, to finalize and approve all relevant documents necessary for the NCD issuance. This delegation enables efficient execution of the fund raising process while maintaining proper governance oversight.

The flexible structure allows CSL Finance to determine specific terms including tenure, coupon rates, security arrangements, and redemption schedules for each tranche based on market conditions and investor requirements. This strategic approach to debt capital raising demonstrates the company's commitment to diversifying its funding sources through institutional debt markets.

CSL Finance Limited delivered strong financial performance in Q3FY26, demonstrating robust growth across key metrics. The non-banking financial company, which specializes in providing loans to small and medium enterprises, reported significant improvements in profitability and revenue generation for the quarter ended December 31, 2025.

Board Meeting and Regulatory Compliance

The Board of Directors approved the unaudited financial results in their meeting held on February 13, 2026, which commenced at 01:00 p.m. and concluded at 03:35 p.m. The results were prepared in accordance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and reviewed by the Audit Committee.

Financial Performance Highlights

The company's quarterly results showcased impressive growth momentum with net profit after tax surging 24.7% year-on-year to ₹2,092.08 lacs compared to ₹1,677.40 lacs in Q3FY25. Total income expanded 20.0% to ₹6,443.75 lacs, driven primarily by strong interest income growth.

Nine-Month Performance

For the nine-month period ended December 31, 2025, CSL Finance maintained its growth trajectory with net profit reaching ₹6,669.39 lacs, representing a 25.5% increase from ₹5,311.64 lacs in the corresponding period last year. Total income for the nine-month period grew 17.9% to ₹18,785.52 lacs.

Revenue Composition and Operational Metrics

Interest income remained the primary revenue driver, contributing ₹6,129.10 lacs in Q3FY26 compared to ₹5,033.34 lacs in the previous year quarter. Fees and commission income stood at ₹192.56 lacs, while recoveries of financial assets written off contributed ₹94.64 lacs to total revenue from operations.

The company's expense management showed mixed trends, with finance costs increasing to ₹2,176.92 lacs from ₹1,719.40 lacs year-on-year, reflecting business expansion. Employee benefit expenses rose to ₹866.54 lacs from ₹696.33 lacs, indicating organizational growth.

Management Changes in Internal Audit

CSL Finance announced significant changes to its internal audit framework during the quarter. The Board of Directors approved the appointment of Mr. Ayuush Mittaal as President – Internal Audit and Internal Auditor of the company. Mr. Mittaal, a qualified Chartered Accountant from the 2016 batch, brings over 10 years of experience in capital and forex markets along with extensive expertise in taxation and corporate restructuring.

Simultaneously, M/s. R. Mahajan & Associates stepped down as Internal Auditors to re-align the internal audit framework pursuant to RBI guidelines. The firm will continue as consultants to provide advisory and support services to the internal audit function.

Regulatory Compliance and Future Outlook

The company implemented revised RBI guidelines on provisioning norms for project finance exposures effective October 1, 2025, resulting in additional impairment charges during the current reporting period. CSL Finance continues to focus on its core business of providing loans to small and medium enterprises while maintaining compliance with evolving regulatory requirements.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on February 13, 2026, with statutory auditors S.R. Dinodia & Co. LLP conducting a limited review of the quarterly results.