Laxmi India Finance Limited has delivered robust financial performance in Q3FY26, with the board of directors approving the unaudited financial results for the quarter and nine months ended December 31, 2025, during their meeting held on February 10, 2026.

Strong Financial Performance in Q3FY26

The company demonstrated impressive growth momentum with net profit surging 63.58% year-on-year to ₹1,006.22 lakhs in Q3FY26, compared to ₹615.10 lakhs in the corresponding quarter of the previous year. This strong performance was supported by robust revenue growth and improved operational efficiency.

Revenue Growth Driven by Core Business

Revenue from operations increased by 28.85% to ₹7,883.23 lakhs in Q3FY26, up from ₹6,118.77 lakhs in Q3FY24. The primary driver was interest income, which grew 24.32% to ₹7,198.63 lakhs, reflecting the company's expanding lending portfolio. Fees and commission income also contributed positively, reaching ₹395.21 lakhs compared to ₹321.54 lakhs in the previous year.

Nine-Month Performance Shows Consistent Growth

For the nine-month period ended December 31, 2025, the company maintained its growth trajectory with net profit of ₹2,924.13 lakhs compared to ₹2,143.42 lakhs in the corresponding period of FY24. Revenue from operations for the nine-month period reached ₹22,418.28 lakhs, up from ₹17,144.15 lakhs in the previous year.

Operational Efficiency and Cost Management

The company's total expenses for Q3FY26 stood at ₹6,639.60 lakhs, with finance costs of ₹3,403.48 lakhs and employee benefits expenses of ₹1,978.17 lakhs. The company maintained disciplined cost management while investing in business growth. Impairment on financial instruments was ₹718.43 lakhs for the quarter.

Key Financial Ratios and Metrics

Basic earnings per share remained steady at ₹1.90 for Q3FY26, with the nominal value of equity shares at ₹5.00. The company's debt-equity ratio stood at 2.69, while maintaining a strong capital adequacy ratio (CRAR) of 28.40%. Net profit margin for the nine-month period was 12.87%.

Senior Management Strengthening

The board approved the appointment of Mr. Vinod Maheshwari as Chief Technology Officer, effective February 10, 2026. Mr. Maheshwari, who was previously serving as Vice President – IT, brings over 15 years of experience in information technology and fintech transformation across NBFC and regulated financial environments.

IPO Proceeds Utilization

The company has substantially utilized its IPO proceeds raised in August 2025, with ₹16,412.11 lakhs out of ₹16,516.64 lakhs deployed as of December 31, 2025. The majority of funds were allocated toward meeting future capital requirements for onward lending.

Source:

Laxmi India Finance Limited has submitted its quarterly monitoring agency report for the quarter ended December 31, 2025, providing detailed insights into the utilization of proceeds raised through its Initial Public Offer (IPO). The report, mandated under Regulation 32(6) of SEBI LODR and prepared by CARE Ratings Limited as the monitoring agency, demonstrates the company's compliance with regulatory requirements for IPO proceeds utilization.

IPO Details and Proceeds Structure

The company's IPO was conducted over a three-day period from July 29, 2025, to July 31, 2025, raising a total of Rs. 254.26 crore. The issue comprised two components: a fresh issue of Rs. 165.17 crore and an offer for sale of Rs. 89.09 crore. As a Non-Banking Financial Company (NBFC), Laxmi India Finance operates in the financial services sector with promoters including Deepak Baid, Prem Devi Baid, Aneesha Baid, and several private limited companies and trusts.

Utilization Progress and Financial Deployment

The monitoring report reveals significant progress in the deployment of IPO proceeds during Q3FY26. The company has utilized Rs. 164.12 crore out of the total fresh issue proceeds of Rs. 165.17 crore, representing approximately 99.36% utilization. The remaining unutilized amount stands at Rs. 1.05 crore, which is currently held in the HDFC Bank public issue account.

Object-wise Fund Deployment

The IPO proceeds were allocated for two primary objectives, both of which have seen substantial progress during the quarter:

Capital Base Augmentation

The largest component, amounting to Rs. 151.59 crore, was designated for augmenting the capital base to meet future capital requirements towards onward lending. This objective has been fully completed, with the entire allocated amount utilized by December 31, 2025. During Q3FY26 alone, Rs. 92.62 crore was deployed for this purpose, with Rs. 90.05 crore transferred from the monitoring account to the company's current account and Rs. 2.57 crore utilized directly from the current account.

Share Issue Expenses

For share issue expenses related to the fresh issue, Rs. 13.58 crore was originally allocated. By the end of Q3FY26, Rs. 12.53 crore had been utilized, leaving Rs. 1.05 crore unutilized. During the quarter, Rs. 3.61 crore was spent on issue-related expenses, including Rs. 3.57 crore for reimbursement of expenses previously incurred from the company account and Rs. 0.04 crore directly from the public issue account.

Compliance and Monitoring Observations

The monitoring agency report confirms full compliance with the disclosed objects of the IPO, with no deviations observed from the expenditures outlined in the offer document. CARE Ratings Limited noted that all utilization has been in accordance with the objectives mentioned in the offer document, and no major deviations were observed compared to earlier monitoring reports.

The report also highlighted that the company's share price had declined by 42% from the issue price as of February 06, 2026, which was noted as relevant information that may materially affect investor decision-making. However, this market performance does not impact the utilization of IPO proceeds or the company's compliance with regulatory requirements.

Timeline and Future Outlook

The capital base augmentation objective was completed ahead of the scheduled timeline of March 31, 2026, demonstrating efficient deployment of funds. The monitoring agency confirmed no delays in the implementation of the stated objectives, with the primary goal of capital augmentation achieved by December 31, 2025.

The remaining Rs. 1.05 crore in unutilized funds represents share issue expenses and is held in the designated HDFC Bank public issue account, maintaining transparency and regulatory compliance for future expense settlements related to the IPO process.