Laxmi India Finance Limited , a prominent player in the Indian financial services sector, has reported significant growth in its Assets Under Management (AUM) and successfully completed its Initial Public Offering (IPO). However, the company also faced some challenges in asset quality due to environmental factors affecting its rural operations.

Financial Highlights

• AUM Growth: Laxmi India Finance achieved an AUM of ₹1,386.49 crores, marking a substantial year-on-year growth of 24.75%.
• IPO Success: The company completed its IPO, raising ₹151.58 crores, which significantly strengthened its capital base.
• Capital Adequacy: The capital adequacy ratio improved to 31.90%, providing a solid foundation for future growth.
• Profitability: The company reported a Profit After Tax (PAT) of ₹19.06 crores.

Asset Quality Pressure

Despite the overall positive performance, Laxmi India Finance faced some asset quality challenges:

• GNPA Rise: The Gross Non-Performing Assets (GNPA) increased to 1.59%.
• Environmental Factors: Floods in Rajasthan and Madhya Pradesh affected the company's rural operations, contributing to the asset quality pressure.

Financial Performance Analysis

Let's take a closer look at the company's financial performance based on the latest available data:

Income Statement Highlights

Balance Sheet Overview

Cash Flow Statement

Analysis and Outlook

Laxmi India Finance has demonstrated strong growth in its AUM and successfully raised capital through its IPO, indicating investor confidence in the company's business model and growth prospects. The significant improvement in the capital adequacy ratio to 31.90% provides a robust foundation for future expansion and regulatory compliance.

However, the rise in GNPA to 1.59% is a concern that warrants attention. The impact of environmental factors such as floods on the company's rural operations highlights the vulnerability of its asset quality to external events. This underscores the need for robust risk management practices and geographical diversification of the loan portfolio.

The company's revenue growth of 26.79% year-over-year is impressive, reflecting its ability to capitalize on market opportunities. However, the substantial decline in EPS (-55.40%) despite growth in net profit suggests potential dilution from the recent IPO or other equity-related events.

The negative cash flow from operating activities (-₹311.30 crores) is typical for growing NBFCs due to increased lending activities. The positive net cash flow of ₹60.20 crores, primarily driven by financing activities, indicates the company's ability to fund its growth through a mix of internal accruals and external financing.

Going forward, Laxmi India Finance should focus on:

1. Improving asset quality and reducing GNPA levels
2. Leveraging its strengthened capital base for sustainable growth
3. Enhancing risk management practices, especially in flood-prone rural areas
4. Optimizing its cost structure to improve profitability ratios

While the company has shown resilience in its growth trajectory, managing asset quality will be crucial for long-term success in the competitive Indian financial services sector.

Investors and stakeholders should monitor the company's ability to maintain growth momentum while effectively managing credit risks and operational challenges in its target markets.

Laxmi India Finance Limited has successfully concluded its postal ballot process with shareholders overwhelmingly approving significant amendments to the Employee Stock Option Scheme 2023 (ESOS 2023). The voting results, announced on December 22, 2025, showed remarkable support with 99.99% approval for both proposed resolutions.

Voting Results Overview

The postal ballot process concluded on December 18, 2025, with strong shareholder participation. The voting statistics demonstrate the confidence shareholders have in the company's employee incentive strategy:

Approved Resolutions

Resolution 1: ESOP Scheme Amendments

Shareholders ratified and amended the ESOS 2023 with the following key provisions:

The scheme covers employees working in India or abroad, including directors (excluding independent directors), but excludes promoters and those holding over 10% of outstanding equity shares.

Resolution 2: High-Value Grant Approval

The second resolution approved granting options exceeding 1% but not exceeding 4% of issued capital to identified employees during any financial year. This provision provides the company flexibility in rewarding key personnel and aligning with competitive market practices.

Implementation Framework

The ESOS 2023 will be directly implemented and administered by the company through its Board/Committee without involving a trust structure. The company plans to use the Fair Value Method for calculating employee compensation costs related to the ESOP.

The scheme will remain in force until all available options are granted and exercised, or the scheme is terminated by the Board. The exercise price will be determined by the Board/Committee but will not be lower than the face value of shares on the grant date.

Scrutinizer's Report

CS Manoj Maheshwari served as the scrutinizer for the postal ballot process. The voting was conducted through electronic means via MUFG Intime India Private Limited's platform. The e-voting period commenced on November 19, 2025, at 9:00 AM and concluded on December 18, 2025, at 5:00 PM.

These approved amendments reflect LIFL's commitment to aligning its employee incentive program with current market practices and regulatory requirements post-listing, enhancing the company's ability to attract, retain, and motivate key talent in the competitive financial services landscape.