Moneyboxx Finance Limited , a non-banking financial company (NBFC), has achieved remarkable recognition at the League of American Communications Professionals (LACP) 2023 Spotlight Awards. The company's Integrated Annual Report for FY23 has not only won Gold Awards in two categories but also secured a place in the global Top 40 rankings.

Award-Winning Performance

Moneyboxx Finance's Integrated Report demonstrated exceptional quality, earning an impressive score of 98 out of 100. This outstanding performance placed the company among the top contenders in a highly competitive field, with entries from nearly twenty countries across four continents.

Key Highlights

Sustained Excellence

This year's achievement marks the second consecutive year that Moneyboxx Finance has been recognized for its reporting excellence. The company's consistent performance underscores its commitment to transparency and quality in financial reporting.

Industry Impact

The LACP Spotlight Awards are widely regarded in the corporate communications field. Moneyboxx Finance's success in this global arena not only highlights the company's dedication to clear and comprehensive reporting but also sets a benchmark for other NBFCs and financial institutions in India.

As the financial sector continues to evolve, Moneyboxx Finance's commitment to excellence in reporting and transparency could potentially strengthen investor confidence and set new standards for corporate communication in the industry.

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.