Read the quarter in context.
A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
Pending
verification pending
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
manual review required
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Laxmi India Finance reported a strong FY26 with PAT of ₹49.7 crore (+38% YoY) and AUM growth of 27% to ₹1,626 crore, driven by secured MSME lending in semi-urban markets. Net interest income rose 39% to ₹161 crore, supported by portfolio growth and a 68bps reduction in borrowing cost to 10.8%. Asset quality remained stable with gross NPA at 2.13% and net NPA at 1.09%, backed by a secured portfolio (98%) and conservative LTV of ~45%. Management guided for 30-35% AUM CAGR and 40-45% PAT growth over the medium term, underpinned by branch expansion into new states (Maharashtra, UP) and improving operating leverage. A one-off ₹8.66 crore gain from a direct assignment transaction boosted Q4 profitability. Key risk: concentration in Rajasthan (82% of AUM) exposes the portfolio to regional economic shocks, though management cites strong collateral coverage and joint-family repayment culture as mitigants.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects AUM to compound at 30-35% annually, driven by branch expansion, deeper penetration in existing states, and new geographies like Maharashtra and UP.
- Profit after tax is expected to grow at 40-45% annually as operating leverage improves and branch productivity matures.
- Treasury head guided for a further 20-25 bps decline in blended borrowing cost in FY27, benefiting from the recent rating upgrade and increased bank borrowings.
- Management targets maintaining return on assets above 3% on a sustained basis, translating into ROE of at least 12-12.5% in the medium term.
Risks flagged
- 82% of AUM is concentrated in Rajasthan, making the portfolio vulnerable to regional economic disruptions, political events, or localized slowdowns.
- Q4 PAT included an ₹8.66 crore upfront profit from a direct assignment sale, which may not recur. Excluding this, PAT growth would be lower, raising questions about sustainable earnings quality.
- Though management downplays risk, the semi-urban and rural borrower base is vulnerable to natural calamities like El Niño, which could impact repayment capacity.
- Increasing competition could pressure pricing discipline and underwriting standards, though management believes its focus on non-income-proof customers provides a moat.
Key quotes
- Our objective has never been growth at any cost. Our focus always remain on building a high-quality lending institute with strong governance standards, discipline, risk management, sustainable profitability and long-term customer relationship.
- We are more focusing towards the bank borrowings. So previously before rating upgradations there are certain limitations on the per bank on AUM basis what they can extend to us. So with the rating accreditation we can get an ample of fund what we will be requiring for this year.
- We have a very strong collateral with us. So we believe that our loss will not be there at any time in past also and in future also.
Research modules