CSL Finance Reports 29% AUM Growth, Targets Rs 1,500-1,600 Crore by Year-End
CSL Finance Limited, an NBFC, reported robust growth in Q2 FY26. AUM increased by 29% year-on-year to Rs 1,397.00 crores. PAT grew 37% to Rs 24.50 crores, while NII rose 10% to Rs 14.90 crores. SME retail disbursements surged 93% year-on-year. Asset quality improved with Gross NPA at 0.51% and Net NPA at 0.39%. The company aims to expand to 60 branches by FY26 end and targets an AUM of Rs 1,500-1,600 crores. CSL Finance plans to increase SME retail segment's contribution to AUM from 35-36% to 45% by FY27 end.
*this image is generated using AI for illustrative purposes only.
CSL Finance Limited , a non-banking financial company (NBFC), has reported robust growth in its Assets Under Management (AUM) for the second quarter of fiscal year 2026, signaling a strong recovery in its SME retail business after a year of consolidation.
Key Financial Highlights
- AUM Growth: The company's AUM stood at Rs 1,397.00 crores as of Q2 FY26, marking a 29% year-on-year increase and an 8% sequential growth from the previous quarter.
- Profit After Tax (PAT): CSL Finance recorded a PAT of Rs 24.50 crores, representing a significant 37% year-on-year growth and a 15% quarter-on-quarter increase.
- Net Interest Income (NII): NII for Q2 FY26 was Rs 14.90 crores, up 10% year-on-year and 2% sequentially.
SME Retail Segment Revival
The company witnessed a notable upturn in its SME retail disbursements, which grew by 93% year-on-year and 61% sequentially. This improvement reflects the success of corrective measures implemented over the past few quarters, including refined credit policies, optimized product portfolios, and strengthened underwriting processes.
Asset Quality Improvement
CSL Finance reported steady improvement in asset quality:
- Gross NPA stood at 0.51% in Q2 FY26, down from 0.56% in Q1 FY26 and 0.54% in Q2 FY25.
- Net NPA was 0.39% in Q2 FY26, compared to 0.42% in Q1 FY26 and 0.32% in Q2 FY25.
Expansion and Future Outlook
- Branch Network: The company added two new branches during Q2, bringing the total to 45. It aims to expand to 60 branches by the end of FY26.
- AUM Target: CSL Finance has set a target of reaching an AUM between Rs 1,500-1,600 crores by the end of FY26.
- SME Focus: The company plans to increase the SME retail segment's contribution to its AUM from the current 35-36% to 45% by the end of FY27.
Management Commentary
Rohit Gupta, Managing Director of CSL Finance, stated, "After a year of consolidation in FY25, particularly in our SME retail business, we are happy to report visible progress in the first half of this year. Our focus remains on driving disciplined growth, particularly through the SME retail segment, while maintaining robust asset quality and liquidity."
Challenges and Strategy
Despite the positive outlook, the company acknowledges ongoing challenges in the broader industry, including over-leveraged borrower profiles and muted income growth in the MSME ecosystem. CSL Finance plans to navigate these challenges by:
- Expanding its branch network using a hub-and-spoke model.
- Focusing on secured lending in the Rs 10-50 lakh ticket size segment.
- Improving service delivery and reducing disbursement time to 7-15 days for loans up to Rs 25 lakhs.
The company remains cautiously optimistic about its growth prospects, aiming to balance expansion with maintaining asset quality in a competitive market environment.
Note: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consult financial advisors before making investment decisions.
Historical Stock Returns for CSL Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.54% | +0.44% | +1.82% | -10.78% | -8.38% | +25.41% |
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