CSL Finance Limited delivered strong financial performance in Q3FY26, demonstrating robust growth across key metrics. The non-banking financial company, which specializes in providing loans to small and medium enterprises, reported significant improvements in profitability and revenue generation for the quarter ended December 31, 2025.

Board Meeting and Regulatory Compliance

The Board of Directors approved the unaudited financial results in their meeting held on February 13, 2026, which commenced at 01:00 p.m. and concluded at 03:35 p.m. The results were prepared in accordance with Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and reviewed by the Audit Committee.

Financial Performance Highlights

The company's quarterly results showcased impressive growth momentum with net profit after tax surging 24.7% year-on-year to ₹2,092.08 lacs compared to ₹1,677.40 lacs in Q3FY25. Total income expanded 20.0% to ₹6,443.75 lacs, driven primarily by strong interest income growth.

Nine-Month Performance

For the nine-month period ended December 31, 2025, CSL Finance maintained its growth trajectory with net profit reaching ₹6,669.39 lacs, representing a 25.5% increase from ₹5,311.64 lacs in the corresponding period last year. Total income for the nine-month period grew 17.9% to ₹18,785.52 lacs.

Revenue Composition and Operational Metrics

Interest income remained the primary revenue driver, contributing ₹6,129.10 lacs in Q3FY26 compared to ₹5,033.34 lacs in the previous year quarter. Fees and commission income stood at ₹192.56 lacs, while recoveries of financial assets written off contributed ₹94.64 lacs to total revenue from operations.

The company's expense management showed mixed trends, with finance costs increasing to ₹2,176.92 lacs from ₹1,719.40 lacs year-on-year, reflecting business expansion. Employee benefit expenses rose to ₹866.54 lacs from ₹696.33 lacs, indicating organizational growth.

Management Changes in Internal Audit

CSL Finance announced significant changes to its internal audit framework during the quarter. The Board of Directors approved the appointment of Mr. Ayuush Mittaal as President – Internal Audit and Internal Auditor of the company. Mr. Mittaal, a qualified Chartered Accountant from the 2016 batch, brings over 10 years of experience in capital and forex markets along with extensive expertise in taxation and corporate restructuring.

Simultaneously, M/s. R. Mahajan & Associates stepped down as Internal Auditors to re-align the internal audit framework pursuant to RBI guidelines. The firm will continue as consultants to provide advisory and support services to the internal audit function.

Regulatory Compliance and Future Outlook

The company implemented revised RBI guidelines on provisioning norms for project finance exposures effective October 1, 2025, resulting in additional impairment charges during the current reporting period. CSL Finance continues to focus on its core business of providing loans to small and medium enterprises while maintaining compliance with evolving regulatory requirements.

The financial results were reviewed by the Audit Committee and approved by the Board of Directors in their meeting held on February 13, 2026, with statutory auditors S.R. Dinodia & Co. LLP conducting a limited review of the quarterly results.

CSL Finance Limited has announced its provisional quarterly update for Q3 FY26 ended December 31, 2025, showcasing robust operational performance with significant growth across key financial metrics. The company's Assets Under Management (AUM) reached ₹1467.00 crore, marking a substantial 27.56% increase compared to ₹1150.00 crore in the corresponding quarter of the previous fiscal year.

Financial Performance Highlights

The company's Q3 FY26 performance demonstrates strong growth momentum across multiple operational parameters:

Lending Operations and Capital Access

CSL Finance successfully secured fresh sanctions totaling ₹198.00 crore from 9 lenders, including 2 new lenders, during Q3 FY26. The company availed fresh debt of ₹168.00 crore from existing banks and financial institutions, demonstrating strong relationships with the lending community.

The company disbursed ₹356.00 crore in new loans during the quarter, indicating active lending operations and continued business expansion. Collections for the quarter stood at ₹220.00 crore, reflecting efficient cash flow management and asset quality maintenance.

Portfolio Composition and Operational Metrics

CSL Finance maintains a diversified portfolio mix of 69:31 (WSL: SME) as of December 2025, compared to 67:33 in the previous quarter ended September 2025. This shift indicates a strategic focus toward wholesale lending operations.

Financial Strength and Liquidity Position

The company maintains a robust liquidity surplus of ₹163.00 crore, including undrawn sanctions of ₹30.00 crore, providing adequate buffer for operational requirements and growth opportunities. CSL Finance's Capital Adequacy Ratio stands at a healthy 44.00%, significantly above regulatory requirements, indicating strong capital buffers and financial stability.

The AUM growth includes Deferred Assets (DA) of ₹76.00 crore as of December 2025, compared to ₹45.00 crore in the corresponding quarter of the previous year. The company noted that the provided information is provisional and subject to limited review by statutory auditors.