Regency Fincorp FY26 PAT surges 170% to INR13.4 crores
Regency Fincorp reported a 170% YoY increase in PAT to INR13.4 crores for FY2026, while AUM grew 45% to INR261.2 crores. The company shifted its portfolio mix, with secured loans constituting 61% of AUM, and maintained a net NPA of 0.74%.
*this image is generated using AI for illustrative purposes only.
Regency Fincorp has reported a robust financial performance for the year ended March 31, 2026, with its profit after tax (PAT) growing 170% year-on-year to INR13.4 crores. The asset under management (AUM) increased by 45% to INR261.2 crores from INR170 crores in the previous financial year, driven by a strategic shift towards secured MSME lending.
Financial Performance
The company’s total income rose 85% year-on-year to INR40.1 crores in FY2026, compared to INR21.7 crores in FY2025. For the quarter ended March 31, 2026, total income stood at INR12 crores, reflecting a 43% increase over the corresponding period in the previous year. Net interest income more than doubled to INR27.6 crores for the full year, while Q4 FY2026 net interest income was INR7.5 crores, up 20% year-on-year.
| Metric | FY2026 | FY2025 | Growth |
|---|---|---|---|
| Total Income | INR40.1 crores | INR21.7 crores | 85% |
| Net Interest Income | INR27.6 crores | - | >100% |
| Profit After Tax | INR13.4 crores | INR4.9 crores | 170% |
| AUM | INR261.2 crores | INR170 crores | 45% |
Operational Highlights
A key highlight of the year was the momentum in the secured lending business. Secured disbursements contributed approximately 57% of total disbursements in FY2026, compared to 23% in FY2025. Consequently, the secured loan book now constitutes around 61% of the total AUM, significantly higher than the 18% recorded in FY2025. The company has rationalized its unsecured lending book, including the discontinuation of Joint Liability Group (JLG) loans, to focus on higher-quality credit.
On asset quality, the net NPA stood at 0.74% in FY2026, compared to 0.31% in FY2025. The net worth increased to INR106 crores as of March 2026, supported by internal accruals and capital infusion. The company maintains a Capital to Risk-weighted Assets Ratio (CRAR) of 57.6%.
Strategic Outlook
Management outlined a strategy to scale the secured MSME book and expand digital lending initiatives. The company plans to launch a digital wallet named RedPay and has received a No Objection Certificate (NOC) from the RBI for a PPI license. Geographically, Regency Fincorp intends to deepen its presence in North India, targeting 50 branches by the end of the next financial year, while selectively entering new markets in the West. The average ticket size for MSME loans ranges between INR35 lakhs and INR45 lakhs, with tenures typically between 48 to 60 months.
Historical Stock Returns for Regency Fincorp
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.18% | -0.34% | +2.86% | -14.58% | +12.84% | +419.05% |
How will Regency Fincorp manage asset quality risks as it rapidly scales from 23 to 50 branches, given that geographic expansion into new North Indian markets could expose the portfolio to unfamiliar credit environments?
Can the company realistically reduce its cost of funds from 13–14% to 11–12% while simultaneously growing its lender base, and what impact would a prolonged high-interest-rate environment have on its 7.1% spread?
With the JLG book being wound down due to rising NPAs, how vulnerable is Regency Fincorp's growth trajectory to potential stress in its secured MSME portfolio if collateral values in North India experience a correction?
20
Access Market Heat-map & Insights 
Create, Save & Share your Screener 
Use 200+ Screening Filters 
