Regency Fincorp FY26 Net Profit Soars 170% to ₹13.4 Cr; AUM Grows 45%
Regency Fincorp reported a 170% YoY surge in FY26 PAT to ₹13.4 crore, with total income up 85% to ₹40.1 crore and AUM expanding 45% to ₹261.2 crore. The company raised ₹25 crore via CCDs and multiple NCD tranches totalling ~₹85 crore, while the board approved a pipeline of up to ₹400 crore in future NCD issuances to fund digital lending and MSME expansion.
*this image is generated using AI for illustrative purposes only.
Regency Fincorp Limited announced its audited consolidated financial results for the quarter and financial year ended March 31, 2026, reporting a significant surge in profitability and asset growth. The board meeting, held on May 6, 2026, approved the standalone and consolidated results, which highlighted a robust performance driven by business expansion and operational efficiency.
FY26 Financial Performance
The company reported a 170% year-on-year increase in Profit After Tax (PAT) for FY26, reaching ₹13.4 crore compared to ₹5.0 crore in the previous year. Total income for the year rose by 85% to ₹40.1 crore, while Net Interest Income (NII) grew by 113% to ₹27.6 crore. Pre-provisioning operating profit saw a substantial jump of 185% to ₹19.6 crore. For the fourth quarter of FY26, PAT increased by 37% to ₹3.5 crore, while total income stood at ₹12.0 crore, up 43% from the same period last year.
The following table summarises key performance metrics across Q4 and full-year FY26:
| Particulars (INR crores): | Q4 FY26 | Q4 FY25 | Y-o-Y | FY26 | FY25 | Y-o-Y |
|---|---|---|---|---|---|---|
| Total Income: | 12.0 | 8.4 | 43% | 40.1 | 21.7 | 85% |
| Finance Cost & Commission Expenses: | 4.5 | 2.1 | 112% | 12.4 | 8.7 | 43% |
| Net Interest Income & Fee Income: | 7.5 | 6.3 | 20% | 27.6 | 12.9 | 113% |
| Pre-Provisioning Operating Profit: | 5.1 | 3.7 | 39% | 19.6 | 6.9 | 185% |
| Profit After Tax: | 3.5 | 2.6 | 37% | 13.4 | 5.0 | 170% |
Asset Quality and Growth Metrics
Regency Fincorp's Assets Under Management (AUM) expanded by 45% to ₹261.2 crore in FY26 from ₹180.2 crore in FY25. Disbursements for the year grew by 43% to ₹142.1 crore. The Net Interest Margin (NIM) improved by 285 basis points to 10.3%, while Return on Assets (ROA) and Return on Equity (ROE) stood at 12.3% and 16.7%, respectively. Asset quality showed a Gross NPA (GNPA) of 0.99% and Net NPA (NNPA) of 0.74% as of March 31, 2026.
| Particulars (INR crores): | FY26 | FY25 | Y-o-Y |
|---|---|---|---|
| AUM: | 261.2 | 180.2 | 45% |
| Disbursement: | 142.1 | 98.7 | 43% |
| NIM: | 10.3% | 7.4% | 285 bps |
| ROA: | 12.3% | 10.6% | 174 bps |
| ROE: | 16.7% | 7.8% | 892 bps |
| GNPA: | 0.99% | 0.42% | 57 bps |
| NNPA: | 0.74% | 0.31% | 43 bps |
Strategic Fundraising and Capital Augmentation
The board approved the issuance of call letters to holders of convertible share warrants allotted on December 28, 2024, for the balance 75% of the issue price. The company raised ₹25 crore through the issuance of Compulsorily Convertible Debentures (CCDs) in April-May 2026 to expand its digital lending and secured MSME book. The company further strengthened its balance sheet through multiple capital initiatives, with NCD issuances of approximately ₹25 crore in January 2026, approximately ₹30 crore in March 2026, and an additional ₹30 crore NCD issuance in the first week of May 2026. Equity expansion through warrant conversion increased paid-up capital to approximately ₹80 crore. The board also approved raising up to ₹400 crore through NCDs to support future growth.
| Capital Initiative: | Details |
|---|---|
| CCD Issuance: | ₹25 crore (April-May 2026) |
| NCD Issuance 1: | ~₹25 crore (January 2026) |
| NCD Issuance 2: | ~₹30 crore (March 2026) |
| NCD Issuance 3: | ₹30 crore (First week of May 2026) |
| Paid-up Capital (post warrant conversion): | ~₹80 crore |
| Board-approved NCD fundraise pipeline: | Up to ₹400 crore |
Operational Highlights and MD Commentary
The company is focusing on digital initiatives with its app 'CashMySalary' and plans to launch a digital wallet called 'RegPay', having received a No Objection Certificate (NOC) from the RBI for Prepaid Payment Instruments (PPI). The statutory auditors, M/s K N S G & Co LLP, issued an unmodified opinion on the financial results. The company reported zero defaults across all borrowing categories, with total financial indebtedness standing at ₹61.85 crore.
Commenting on the performance, Gaurav Kumar, Managing Director, Regency Fincorp Limited, said: "Our performance in FY26 reflects the strength of our business fundamentals and our continued commitment to building a robust and customer-focused financial services platform. Despite a dynamic operating environment, we have maintained growth momentum while ensuring portfolio quality and operational discipline. The Company recently raised INR 25 crore through the issuance of CCDs. The proceeds will be utilised towards strengthening our digital lending capabilities and expanding our secured MSME portfolio. Through products such as CashMySalary and RegPay, we aim to leverage our digital and AI capabilities to grow the digital lending portfolio as well as improve overall operational efficiencies."
Historical Stock Returns for Regency Fincorp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.45% | +13.27% | +43.68% | -10.51% | +12.47% | +480.70% |
How will Regency Fincorp manage the rising GNPA trend (from 0.42% to 0.99%) as it aggressively scales its MSME and digital lending portfolio with the ₹400 crore NCD pipeline?
What is the timeline and monetization strategy for the 'RegPay' digital wallet launch, and how does it position Regency Fincorp against established fintech competitors in the PPI space?
With finance costs growing at 112% in Q4 FY26 outpacing NII growth of 20%, how sustainable is the current NIM of 10.3% as the company takes on higher-cost NCD borrowings?
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