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. Subsequently, the company intimated that these audited financial results were published in newspapers, specifically “Desh Sevak- Chandigarh Edition” and “Financial Express- Chandigarh Edition”, on May 8, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

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:

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.

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.

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."

Regency Fincorp Limited's Board of Directors, at their meeting held on 7th May 2026, approved the allotment of 25,000 (Twenty-Five Thousand) 14% Listed, Secured, Rated, Redeemable Non-Convertible Debentures (NCDs) through private placement. The NCDs carry a face value of INR 10,000 (Indian Rupees Ten Thousand Only) each, aggregating to INR 25,00,00,000 (Indian Rupees Twenty-Five Crores Only). The disclosure was made pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Terms of the NCD Issuance

The NCDs have been allotted to LC Capital India Private Limited and are to be listed on BSE Limited. The following table summarises the key terms of the issuance:

Coupon and Principal Payment Schedule

The NCDs are structured with quarterly coupon and principal payments over the tenor of the instrument. The detailed cash flow schedule is as follows:

Security Cover and Default Terms

The NCDs are secured with a security cover of 1.25x (one point two five times) of the amounts outstanding under the Debentures, including interest, default interest, remuneration of the Trustee, charges, fees, expenses, and any other charges due from the company. At least 1.25 times or 125% of the security cover is required to be from principal receivables.

In the event of a default in payment of interest and/or principal redemption on due dates, a default interest rate of 5% (Five per cent) per month from the date of default (over the applicable Coupon Rate) on the outstanding principal amount shall be applicable for the period of default. No cure period will be applicable for such a payment default.

Redemption Structure

The NCDs are to be repaid over 15 months on a quarterly basis, with both interest and principal payments made quarterly. There are no special rights, interests, or privileges attached to the instrument. The disclosure was made in accordance with SEBI Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026, and the filing was signed by Abhimanyu, Company Secretary & Compliance Officer (M No. 49176), on 7th May 2026.