Laxmi India Finance reported a 70% year-on-year increase in Q1FY27 net profit to ₹16.43 crore, supported by a 27% rise in asset under management (AUM) to ₹1,721 crore. The company also outlined plans to open 30–35 new branches this fiscal year.

Meeting details

The company disclosed the schedule pursuant to Regulation 30 read with Part A of Schedule III of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The session was conducted virtually, with participants required to register via a provided Zoom link.

Q1FY27 financial performance

Gopal Krishan Sain, Chief Financial Officer, reported that disbursements increased by 38% to ₹230 crore in the quarter. Key ratios for the quarter included:

• Return on equity (ROE): 13.86%
• Return on total assets (ROTA): 3.45%
• Net interest margin (NIM): 11.36%
• Gross NPA: 2.08%

Asset quality and Upmoney exposure

Management addressed the impact of the Upmoney issue on asset quality. Deepak Baid, Managing Director, stated that the company had an exposure of approximately ₹18–19 crore to Upmoney. As of Q1 ending June 2026, a provision of approximately 70% has been made against this exposure.

Including the Upmoney exposure, gross NPA stands at 2.08%. Excluding it, gross NPA is 0.83%, indicating a healthy underlying portfolio. The company has filed a case for resolution and expects a favorable outcome.

Funding and cost of borrowing

Piyush Somani, Chief Treasury Officer, highlighted improvements in the liability franchise. The cost of borrowing has declined from approximately 11.73% before the IPO to 10.48% currently. Approximately 80–82% of total borrowings are sourced from banks, with the balance from NBFCs. The company has around 50–53 lenders, including ICICI Bank and City Union Bank.

The weighted tenor for borrowings is around 53 months, supported by bank funding. The company also utilizes listed NCDs and direct-assignment transactions for liquidity management.

Growth strategy and operations

Laxmi India Finance operates 196 branches across six states: Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, and Maharashtra. MSME secured lending accounts for 80–82% of the business. The company plans to open 30–35 more branches this financial year.

Kuldeep Singh Sikarwar, Chief Business Officer, noted that the typical ticket size for secured MSME loans is ₹6–6.5 lakh. The yield on secured MSME business is 32.48%, while vehicle finance yields 19.87%. The company aims for a medium-term AUM growth CAGR of approximately 30%.

Compliance note

Laxmi India Finance emphasized that no unpublished price-sensitive information will be shared or discussed during the interaction. The company noted that the schedule is subject to change due to exigencies on the part of the analysts or investors.

Sourabh Mishra, Company Secretary and Chief Compliance Officer of Laxmi India Finance, signed the intimation dated August 17, 2026. The full disclosure is available on the company's website.

Laxmi India Finance has approved the issuance of non-convertible debentures worth up to ₹100 crore through a private placement. The Business Operation Committee of the Board of Directors sanctioned the deal on August 25, 2026, revising the structure from the initial proposal.

The revised issue comprises a base size of ₹80 crore and an oversubscription option, or green shoe option, of ₹20 crore. This marks a shift from the earlier intimation, which proposed a base issue of ₹50 crore with a ₹50 crore green shoe option. The total aggregate nominal value remains capped at ₹100 crore.

Issue Structure

The company will issue up to 1,00,000 rated, listed, unsubordinated, secured, transferable, redeemable non-convertible debentures. Each debenture carries a face value of ₹10,000. The securities are proposed to be listed on the Wholesale Debt Market segment of BSE Limited.

Security and Terms

The NCDs are secured by a first and exclusive charge on identified receivables, created by way of hypothecation in favour of the Debenture Trustee for the benefit of Debenture Holders. Specific details regarding tenure, coupon rates, interest payment schedules, and redemption mechanisms will be disclosed in the Key Information Document.

The disclosure was made under Regulation 30 and Regulation 51 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Sourabh Mishra, Company Secretary and Chief Compliance Officer, signed the intimation.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE06WU01026/7af4cfea-107d-49d7-916b-2ba6ef5c410d.pdf