Moneyboxx Finance Limited , a non-banking financial company (NBFC), has reported a 16% year-on-year growth in Assets Under Management (AUM) to INR 892.00 crores in Q2 FY26, up from INR 769.00 crores in Q2 FY25. The company's strategic shift towards secured lending and higher-value loans is reshaping its portfolio mix and risk profile.

Key Financial Highlights

• Total income grew 10% year-on-year to INR 55.00 crores
• Profit after tax declined to INR 0.30 crores from INR 2.30 crores in the previous year
• Disbursements reached INR 115.00 crores, up 23% from the previous quarter

Strategic Shift to Secured Lending

Moneyboxx Finance is making a significant transition towards secured lending:

• Secured disbursements accounted for 69% of total disbursements in Q2 FY26, up from 43% in Q2 FY25
• Secured loan book now represents 55% of total AUM, compared to 32% in Q2 of the previous year
• The company targets a 70% secured lending share by March 2026

Portfolio Diversification and Quality Improvement

The company is actively diversifying its portfolio and improving credit quality:

• Livestock-based disbursements reduced from 64% in Q1 FY25 to 37% in Q2 FY26
• Loans with average ticket size of INR 5-10 lakhs have grown fivefold to 60% from 19% in terms of disbursement
• 72% of disbursements in Q2 FY26 were to customers with credit bureau scores of 650 and above, up from 50% last year

Asset Quality and Collections

• Gross NPA improved to 3.26% from over 7% in Q1, largely due to an ARC transaction
• Overall collection efficiency stood at 92.5%
• Collection efficiency for secured loans was 96%

Operational and Financial Metrics

• Operating expenses as a percentage of AUM stood at 12.7%, slightly lower than 12.8% in FY25
• Average lending IRR stood at 26.4%, while average borrowing IRR reduced to 12.8%
• The company maintains a liquidity buffer of INR 97.00 crores

Future Outlook and Initiatives

• Moneyboxx Finance aims to bring operating expenses below 10% over the next two years
• The company targets 25-30% year-on-year AUM growth in the coming year
• A proprietary Cattle AI solution was launched in March 2025 to enhance cattle verification for secure gold lending

Capital Raise and Shareholder Value

• The company raised a total equity of INR 175.80 crores, with INR 84.72 crores expected by March 2026
• Current Capital to Risk (Weighted) Assets Ratio (CRAR) stands at 27.1%
• The Board has approved a 1:1 bonus share issue

Moneyboxx Finance's strategic shift towards secured lending and higher-value loans appears to be a prudent move in the current economic environment. While the transition has impacted short-term profitability, it positions the company for potentially more stable growth and improved asset quality in the long term. The focus on portfolio diversification and improved credit quality should help mitigate risks associated with sector-specific exposures.

However, investors should note the decline in profit after tax and monitor how the company manages the transition to a predominantly secured lending model. The success of this strategy will depend on the company's ability to maintain growth while improving asset quality and operational efficiency.

The approval of a 1:1 bonus share issue is a positive signal for shareholders, potentially enhancing liquidity and signaling management's confidence in the company's future prospects. As Moneyboxx Finance continues to evolve its business model, close attention should be paid to its ability to execute its strategic initiatives and deliver sustainable growth in the competitive NBFC sector.

Moneyboxx Finance has announced significant corporate actions through a postal ballot notice, seeking shareholder approval for two key resolutions that could potentially reshape its capital structure.

Authorized Share Capital Increase

The company proposes to increase its authorized share capital from Rs. 40.00 crores to Rs. 100.00 crores. This increase would comprise 10 crore equity shares of Rs. 10 each, up from the current 4 crore shares. This move is aimed at accommodating the proposed bonus share issue and future growth plans.

Bonus Share Issue

Moneyboxx Finance has proposed a bonus share issue in the ratio of 1:1. This means shareholders may receive one new fully paid equity share for every existing share held. The company plans to capitalize up to Rs. 37.50 crores from its securities premium account for this purpose.

Key Details of the Bonus Issue

Financial Implications

As of March 31, 2025, Moneyboxx Finance reported a balance of Rs. 203.46 crores in its securities premium account. Post the proposed bonus issue, this balance is expected to be approximately Rs. 165.96 crores, subject to variations based on the actual record date.

Additional Information

• The company has 37,37,745 outstanding convertible warrants and 10,60,400 employee stock options, which will also be eligible for the bonus issue upon conversion or exercise.
• The e-voting period for these resolutions is set from November 5, 2025, to December 4, 2025.
• The results of the postal ballot are expected to be declared by December 8, 2025.

Impact on Shareholders

If approved, this bonus issue could potentially increase the number of shares in circulation, improving liquidity for shareholders. However, it's important to note that while the number of shares held by each shareholder would double, the overall value of their holding may not change proportionately as the stock price typically adjusts to reflect the increased number of shares.

Shareholders are advised to participate in the e-voting process to express their decision on these significant corporate actions. The outcome of this postal ballot could have important implications for Moneyboxx Finance's capital structure and shareholder value in the near term.