Moneyboxx Finance Limited , a non-banking financial company (NBFC) focused on micro-enterprise lending, has transformed its business model toward secured lending. The company's secured disbursements reached 69% in the latest quarterly results compared to 43% in the same period last year. The secured book now comprises 55% of its Assets Under Management (AUM) of ₹892.00 crore, up from 32% in the previous year, with a target of reaching 70% by March 2026.

Business Transformation and Growth

Secured Lending Focus

The company has significantly increased its secured lending portfolio, demonstrating a strategic shift in its business model.

AUM Growth

Moneyboxx Finance's AUM has grown to ₹892.00 crore, indicating strong market performance.

Branch Network

The company now operates 163 branches across 12 states, expanding its geographical presence.

Capital Raising

Moneyboxx Finance has raised equity capital of ₹175.80 crore, with ₹91.10 crore already received and the remaining ₹84.70 crore expected by March 2026.

Financial Highlights

The company reported a robust Capital Adequacy Ratio and improved asset quality, with Gross NPA reduced from 7.28% following an ARC transaction.

Strategic Focus

Moneyboxx Finance is targeting the upper tier of micro-enterprises with the following strategy:

1. Loan Ticket Size: Focusing on average ticket sizes of ₹5-10 lakhs.
2. Customer Quality: Targeting customers with 650+ bureau scores.
3. Portfolio Diversification: Reducing its livestock segment exposure to 37% from 61% in the previous year.

Conclusion

Moneyboxx Finance's transformation towards secured lending and its focus on quality customers in the micro-enterprise segment demonstrate a strategic shift aimed at sustainable growth and improved asset quality. The company's expansion plans, coupled with its capital raising efforts, position it for potential growth in the competitive NBFC sector. The modest profit figures suggest that the company may be in a phase of investing for future growth.

Moneyboxx Finance Limited has announced a 1:1 bonus share issue alongside its financial results for the second quarter of the fiscal year 2025-26. The company's board of directors approved the bonus issue at a meeting held on October 30, 2025, subject to shareholder approval.

Bonus Share Issue

The bonus issue, if approved, will see shareholders receive one new fully paid-up share of Rs. 10 each for every existing share held. This move is expected to increase the company's paid-up share capital from Rs. 32.70 crore to approximately Rs. 65.41 crore, excluding potential shares from convertible warrants and employee stock options.

Q2 Financial Performance

Moneyboxx Finance reported mixed financial results for the quarter ended September 30, 2025:

The company experienced a significant 85% decline in net profit compared to the same period last year. However, it managed to grow its revenue by 11.11% year-over-year.

Key Financial Indicators

As of September 30, 2025, Moneyboxx Finance reported:

• Total assets of Rs. 929.56 crore
• Net worth of Rs. 262.05 crore
• Debt-to-equity ratio of 2.41
• Gross Stage 3 Assets Ratio of 3.26%
• Net Stage 3 Assets Ratio of 1.66%

Other Corporate Actions

In addition to the bonus issue, the company's board approved:

1. An increase in authorized share capital from Rs. 40 crore to Rs. 100 crore.
2. Changes in the internal audit structure, with Mr. Kumud Kumar appointed as the new Internal Auditor.

The company plans to seek shareholder approval for these actions through a postal ballot.

Investors should note that while the bonus issue may be viewed positively, the decline in quarterly profits warrants attention. The company's ability to maintain revenue growth while addressing profitability challenges will be crucial in the coming quarters.