CSL Finance Limited reported a net profit of ₹2,214.70 lakh for the quarter ended June 30, 2026, marking a 3.9% year-on-year increase from ₹2,131.73 lakh in Q1FY25. The Noida-based non-banking financial company (NBFC) saw revenue from operations grow by 17.7% to ₹6,997.02 lakh, driven primarily by an expansion in interest income and higher bad debt recoveries. The Board of Directors approved the unaudited financial results on August 12, 2026, following a limited review by statutory auditors S.R. Dinodia & Co. LLP. The filing was submitted in compliance with Regulations 30, 33, 51, 52, and 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights

Interest income, the primary revenue driver, increased to ₹6,586.90 lakh from ₹5,597.03 lakh in the corresponding quarter of the previous year. Fees and commission income also edged up to ₹281.98 lakh from ₹253.05 lakh, while bad debt recoveries contributed ₹128.14 lakh, up significantly from ₹94.50 lakh in Q1FY25. Total expenses rose to ₹4,064.62 lakh from ₹3,201.60 lakh, with finance costs increasing to ₹2,369.17 lakh from ₹1,823.54 lakh. Impairment on financial instruments stood at ₹283.41 lakh, compared to ₹242.91 lakh in the prior year quarter. The operating margin remained robust at 42.45%, while the net profit margin was recorded at 31.48%.

The table below summarises the key financial metrics for the quarter:

Asset Quality and Capital Raising

CSL Finance maintained strong asset quality metrics during the quarter, with Gross Non-Performing Assets (GNPA) at 0.95% and Net Non-Performing Assets (NNPA) at 0.60%. The Provision Coverage Ratio (PCR) stood at 36.77%. During the quarter, the company issued and allotted Rated, Listed, Senior, Secured, Redeemable, Taxable Non-Convertible Debentures (NCDs) aggregating to ₹60 crore in two tranches. The first tranche of ₹30 crore was allotted on April 28, 2026, and the second on May 21, 2026. These debentures carry a coupon rate of 11% per annum and are redeemable in April and May 2028, respectively, with proceeds being utilised for onward lending purposes.

What the Numbers Show

While top-line revenue grew by nearly 18%, net profit growth lagged at 3.9%, indicating pressure on margins due to rising finance costs. Finance costs jumped approximately 30% YoY, outpacing the growth in interest income, suggesting that the cost of funds is rising faster than the yield on assets. The Board also reviewed the statement of utilisation of proceeds from non-convertible securities under Regulation 52(7) and 52(7A), reflecting continued compliance with SEBI listing obligations.

Corporate Governance Updates

The Board approved the re-appointment of Rohit Gupta as Managing Director for a further term of five years, effective from August 10, 2027, to August 09, 2032, subject to shareholder approval at the ensuing Annual General Meeting. The company also approved alterations to its Articles of Association to include Article 107A, granting debenture trustees the right to appoint a nominee director as per SEBI regulations.

CSL Finance has accepted the resignation of Atul Kumar Agrawal from the position of President - Finance & Treasury, effective at the close of business on August 31, 2026. The executive tendered his resignation on July 03, 2026, citing a desire to focus on the next phase of his career. He will cease to be part of the senior management of the company from the effective date of cessation.

The disclosure was made to the exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulation, 2015. The company confirmed that Agrawal's last working day will be August 31, 2026, or an earlier date if mutually agreed upon. The resignation letter and detailed disclosures have been attached as annexures to the regulatory filing.

Details of Resignation

The company provided specific particulars regarding the change in its senior management. The following table outlines the key details of the transition:

In his resignation email, Agrawal stated that the decision was due to certain professional and personal reasons. He expressed commitment to ensuring a smooth transition of his responsibilities and extending full cooperation during the notice period to facilitate an orderly handover.