Laxmi India Finance Limited has announced the reaffirmation of its credit rating by Acuité Ratings & Research Limited for Non-Convertible Debentures. The rating agency has maintained the ACUITE A- rating with a positive outlook, reflecting the company's stable credit profile and financial standing.

Credit Rating Details

The rating reaffirmation covers multiple debt instruments with specific allocations across different categories. The comprehensive rating action was completed on February 04, 2026, with verification conducted on the same date.

Regulatory Compliance

The company has fulfilled its disclosure obligations under Regulation 30, 55 and 51 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The formal communication was submitted to both BSE Limited and National Stock Exchange of India Limited on February 05, 2026.

Rating Agency Communication

Acuité Ratings & Research Limited has issued comprehensive rating revalidation letters with specific validity periods. The rating letters contain important compliance requirements and guidelines for the company's ongoing obligations.

Key compliance requirements include:

• Monthly submission of 'No Default Statement' on the first working day
• Immediate notification of NCD issuances within 7 days
• Regular monitoring and surveillance processes

Corporate Structure

The rating covers Laxmi India Finance Limited, formerly known as Laxmi India Finance Private Limited. The company is headquartered at 2, DFL Tower, Gopinath Marg, MI Road, Jaipur 302001, Rajasthan. The rating reaffirmation demonstrates the company's maintained creditworthiness and operational stability in the financial services sector.

The positive outlook indicates Acuité Ratings' expectation of continued stable performance and potential for improvement in the company's credit profile over the rating horizon.

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.