CSL Finance reported a 19% year-on-year increase in net profit to ₹861.10 lakh for the financial year ended March 31, 2026, driven by growth in interest income and a 21% expansion in assets under management. Revenue from operations grew 19.1% to ₹2,560.62 crore in FY26 from ₹2,150.50 crore in the previous year. The board of directors, in its meeting held on May 26, 2026, approved the audited financial results and recommended a final dividend of ₹10.00 per equity share, comprising a normal dividend of 30% and a special dividend of 70% on a face value of ₹10 each, subject to shareholder approval.

For the quarter ended March 31, 2026, net profit stood at ₹194.16 lakh against ₹190 lakh in the same quarter of the prior year, while revenue came in at ₹691.65 lakh compared to ₹565 lakh in the year-ago period. Net interest income rose to ₹168 crore, while total assets increased to ₹1,48,760.08 lakh from ₹1,24,507.41 lakh in the previous year. The company recorded an exceptional item of ₹17.32 lakh during the quarter, relating to a past period employee benefit liability due to the implementation of New Labour Codes effective November 21, 2025. The auditors, M/s S.R. Dinodia & Co. LLP, issued an unmodified opinion on the financial results.

Assets under management reached ₹1,448 crore as of March 31, 2026, up 21% from ₹1,195 crore a year ago. The loan book stood at ₹1,395 crore, an increase of 21% in FY26. Interest income for FY26 rose to ₹2,418.16 crore from ₹1,990.96 crore in FY25. Total expenses for the year increased to ₹1,447.43 crore from ₹1,191.62 crore in the prior year, primarily due to higher finance costs and employee benefit expenses. Profit before tax for the year was ₹1,121.05 crore, compared to ₹968.81 crore in the previous year. Basic earnings per share for FY26 increased to ₹37.80 from ₹31.64 in the previous year.

Strategic Outlook and Asset Quality

Management stated that FY26 performance varied across verticals, with wholesale growing strongly while SME retail faced headwinds due to industry consolidation and cautious underwriting. The AUM mix shifted to 69% wholesale and 31% SME retail. Gross NPA stood at 1.1% in Q4FY26 compared to 0.46% in Q4FY25, while net NPA was 0.81% versus 0.34% in the prior year. The increase was attributed to lower NPA resolutions and revised provisioning norms for project financing. The board approved a new Expected Credit Loss (ECL) policy aligned with the current business composition.

The company concluded a term sheet for a ₹30 crore NCD issue to diversify its funding pool. Liquidity position remains healthy with ₹110.4 crore of balance sheet liquidity and a leverage ratio of 1.39x as of March 31, 2026. The credit rating was reaffirmed at A- Stable by Acuité Ratings and Research. Management guided for AUM growth of 15%-25% in FY27 and expects the SME retail segment to return to normalcy as the operating environment improves.

Financial Performance Summary

The following table presents the full-year financial highlights for FY26 against FY25:

Quarterly Performance

The table below highlights the year-on-year comparison for the quarter ended March 31, 2026:

CSL Finance Limited has successfully completed the allotment of the second tranche of 30,000 Secured Rated Listed Redeemable Non-Convertible Debentures (NCDs) on May 21, 2026. The total value of the issuance aggregates to ₹30 crore, with each debenture carrying a face value of ₹10,000. This private placement was approved by the company's Board of Directors during its meeting on March 18, 2026, and follows an in-principle listing approval from BSE Limited dated April 20, 2026.

Key Details of the Issuance

The NCDs have a fixed tenure of two years and are set to mature on May 21, 2028. Investors will receive interest payments at a rate of 11% per annum, distributed on a quarterly schedule. The securities are secured and will be listed on BSE Limited, providing liquidity to investors.

Security Structure

The debentures are backed by a robust security structure. This includes a first-ranking, exclusive, and continuing charge on the loan receivables of the issuer to the extent of 1.25 times the outstanding amount, including accrued coupon. Additionally, the issuance is supported by an unconditional and irrevocable personal guarantee from Mr. Rohit Gupta. The security covers all present and future current assets of the company classified as such under applicable Accounting Standards, excluding Non-Performing Assets (NPAs) as per RBI regulations.

The company confirmed that there has been no delay in the payment of interest or principal amounts exceeding three months from the due date, nor any default in payments. The debentures are redeemable at maturity on May 21, 2028.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE718F01018/914409d914214441.pdf