CSL Finance reported a 19.4% rise in net profit to ₹861.02 crore for the financial year ended March 31, 2026, compared to ₹720.93 crore in the previous year. The non-banking financial company's total income increased to ₹2,570.21 crore from ₹2,160.43 crore in FY25, primarily driven by a growth in interest income. The board of directors has recommended a total dividend of 100%, comprising a 30% regular dividend and a 70% special dividend, subject to shareholder approval at the upcoming Annual General Meeting.

Interest income for the year grew to ₹2,418.16 crore from ₹1,990.96 crore in the prior year. The company's profit before tax stood at ₹1,121.05 crore, up from ₹968.81 crore in FY25. Expenses for the year totaled ₹1,447.43 crore, an increase from ₹1,191.62 crore, largely due to higher finance costs and employee benefit expenses. Basic earnings per share for the year improved to ₹37.80 from ₹31.64 in the previous year.

Financial Performance

The company's assets under management, represented by its loan book, expanded to ₹1,37,393.81 crore as of March 31, 2026, from ₹1,14,417.64 crore a year earlier. Borrowings increased to ₹85,416.72 crore from ₹69,295.84 crore, reflecting the growth in lending activities. The net cash generated from financing activities was ₹7,017.87 crore, while net cash used in operating activities was ₹5,664.51 crore.

Exceptional Items and Disclosures

The financial results for the quarter and year ended March 31, 2026 include an exceptional item of ₹17.32 lakh. This amount represents a past period employee benefit liability arising from the implementation of the New Labour Codes, which became effective on November 21, 2025. The company has recognized a related deferred tax asset for this liability. The final impact is subject to the notification of State Rules and the finalization of the regulatory framework.

Auditor's Report and Compliance

The financial results were audited by S.R. Dinodia & Co. LLP, Chartered Accountants. In their report, the auditors stated that the results give a true and fair view in conformity with the recognition and measurement principles laid down in the Indian Accounting Standards and other accounting principles generally accepted in India. The report also noted that the financial results include the balancing figures between the audited full-year figures and the published unaudited year-to-date figures up to the third quarter.

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: