Laxmi India Finance Limited has released the transcript of its earnings call held on May 14, 2026, discussing the audited standalone financial results for the quarter and financial year ended March 31, 2026. The disclosure was made pursuant to Regulation 30 and 46 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance for FY26

The company reported a strong financial performance for FY26, with Profit After Tax (PAT) increasing by over 38% to INR 49.7 crores. Net Interest Income (NII) grew by nearly 39% year-on-year to INR 161 crores, driven by healthy portfolio growth and improved branch productivity. The Net Interest Margin (NIM) expanded to 11.26%, while the average cost of borrowing reduced to 10.8% from 11.48% in the previous financial year.

Asset Quality and Capital Adequacy

Asset Under Management (AUM) reached INR 1,626 crores as of March 26, reflecting a year-on-year growth of over 27%. The on-book AUM stood at approximately INR 1,519 crores. The company maintained a healthy asset quality profile with Gross NPA at 2.13% and Net NPA at 1.09%. The capital position strengthened significantly, with Net Worth increasing to approximately INR 465 crores and the Capital Adequacy Ratio improving to over 26%.

Operational Metrics

Disbursements during the year stood at INR 821 crores, and the customer base expanded to more than 42,800. The branch network grew to 176 branches across six states, including recent expansions into Maharashtra and Uttar Pradesh. The company secured a credit rating upgrade from Acuite Ratings to 'Acuite A/Stable outlook' and maintains relationships with over 40 lenders.

Future Outlook

Management expects AUM to compound at around 30% to 35% annually over the medium term. With improving operating leverage, PAT growth is projected to be stronger at around 40% to 45% in the current year. The company remains focused on calibrated growth, geographical expansion, and strengthening its liability franchise to reduce borrowing costs further.

Laxmi India Finance Limited concluded its Board of Directors meeting on May 13, 2026, approving the Audited Financial Results for the quarter and financial year ended March 31, 2026. The meeting, held pursuant to Regulation 30, 33, 51 and 52(4) read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, commenced at 02:00 P.M. and concluded at 05:50 P.M. The audited financial results were reviewed and recommended by the Audit Committee and audited by M/s. S.C. Bapna & Associates, Statutory Auditors of the Company, who issued an unmodified opinion. Subsequently, pursuant to Regulation 47 of the SEBI LODR Regulations, 2015, the company published its audited financial results in all editions of Financial Express (English), the Delhi edition of Jansatta (Hindi), and the Rajasthan edition of Business Remedies (Hindi) on May 15, 2026.

Financial Performance: FY26 and Q4 Results

Laxmi India Finance reported strong growth in its financial results for the year and quarter ended March 31, 2026. On a year-on-year basis, Q4 net profit rose to ₹2,051.63 lakh from ₹1,457.02 lakh, while Q4 revenue from operations grew to ₹9,284.45 lakh from ₹7,427.11 lakh. The following table presents the key financial metrics from the Statement of Profit and Loss (₹ in lakhs):

Balance Sheet Highlights

The company's total assets grew significantly as at March 31, 2026. The following table summarises key balance sheet figures (₹ in lakhs):

Cash Flow Summary

The Statement of Cash Flows for the year ended March 31, 2026 was prepared under the Indirect Method as set out in Ind AS 7. Key cash flow figures (₹ in lakhs) are presented below:

Key Financial Ratios and Regulatory Disclosures

Pursuant to Regulation 52(4) of the SEBI LODR, the company disclosed the following key financial metrics for the year ended March 31, 2026:

The company is categorised under the "Middle Layer" as per the Reserve Bank of India's Master Direction on Scale Based Regulation for Non-Banking Financial Companies. All listed Non-Convertible Debentures of the company are secured by a first and exclusive charge on receivables by way of hypothecation to the extent of a minimum 100% or higher of the amount outstanding. The outstanding amount of listed NCDs as at March 31, 2026 stood at Rs. 61.56 crores (Rs. 12.44 crores against ISIN INE06WU07064 and Rs. 49.12 crores against ISIN INE06WU07072), with the company maintaining an asset cover of 1.10x or higher as required.

Loan Transfers and Co-Lending Disclosures

Pursuant to RBI directions on transfer and distribution of credit risk, the company disclosed details of loan assignments and co-lending arrangements for the year ended March 31, 2026. The company transferred loans not in default through assignment, with key details as follows:

The company also acquired loans through assignment during the year, involving 4,251 loan accounts with a total loan amount of Rs. 3,192.93 lacs and an assigned part acquired of Rs. 2,873.65 lacs. Additionally, the company transferred stressed loans during the year — 544 NPA accounts with aggregate principal outstanding of Rs. 1,505.27 lacs and 525 SMA accounts with aggregate principal outstanding of Rs. 1,943.85 lacs were transferred to Asset Reconstruction Companies.

Regarding co-lending, the company entered into one Co-Lending Arrangement (CLA) with a yearly quantum of Rs. 1,500 lacs. Under the arrangement, Laxmi India Finance Limited contributes 90% of disbursements at an agreed IRR of 15%, with a maximum interest cap of 36% per annum charged to customers. The arrangement covers funding to SMEs for business purposes or renovation/construction of immovable property secured against mortgage, with a default loss guarantee of 5%.

IPO Proceeds Utilisation and NCD Issuance

Laxmi India Finance raised equity capital through its Initial Public Offer (IPO), with equity shares listed on NSE and BSE on August 05, 2025. The company issued 16,092,195 equity shares of ₹5 each at a price of ₹158 per share, comprising a fresh issue of 10,453,575 equity shares and 5,638,620 equity shares offered for sale by selling shareholders. The total IPO proceeds (fresh issue) of ₹16,516.64 lakhs have been fully utilised with no deviation or variation reported for the quarter ended March 31, 2026, as confirmed by monitoring agency CARE Ratings Limited. The utilisation details are as follows:

The board also approved, subject to shareholder approval at the ensuing Annual General Meeting, a limit for issuance of Non-Convertible Debentures (NCDs) on private placement basis for an amount not exceeding Rs. 400,00,00,000/- (Rupees Four Hundred Crores Only) in one or more tranches under Sections 42 and 71 of the Companies Act, 2013, for a period of up to one year from the date of passing of the special resolution.

Other Board Decisions and Appointments

The board approved several other key decisions at the meeting. M/s V.M. & Associates, Company Secretaries (FRN: P1984RJ039200), a peer-reviewed firm with over three decades of experience, was appointed as Secretarial Auditors of the company for a first term of five consecutive years commencing from April 01, 2026 to March 31, 2031, subject to shareholder approval at the ensuing AGM. Additionally, the board approved the appointment of Mr. Yogesh Garg as Vice President – HR, forming part of Senior Management Personnel of the company, effective May 13, 2026. Mr. Garg brings over 18 years of experience in Human Resource Management, having previously served at organisations including Altum Credo Home Finance, AU Small Finance Bank, Aavas Financiers Limited, Muthoot Microfin Limited, and ICICI Securities Limited, among others. In accordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window for dealing in securities of the company by designated persons and their immediate relatives shall be open after 48 hours of the declaration of the audited financial results. The filing was signed by Sourabh Mishra, Company Secretary and Chief Compliance Officer (M.No.: A51872), on behalf of Laxmi India Finance Limited.

Source: None/Company/INE06WU01026/ee300fbad6a04163.pdf