AUM
₹1,626 Cr
+27% YoY
Assets under management grew to ₹1,626 crore as of March 2026, driven by disbursements of ₹821 crore during the year.
LAXMIINDIAFINANCE
Financial Services
15 May 2026
Laxmi India Finance Ltd — Q4 FY26
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.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
Borrowing Cost
10.8%
-68bps YoY
Average cost of borrowing reduced from 11.48% in FY25 to 10.8% in FY26, aided by improved lender confidence post-IPO and rating upgrade.
Branch Network
176
+18 branches YoY
Branch network expanded to 176 across six states, with new entries into Uttar Pradesh and Maharashtra during FY26.
Gross NPA
2.13%
flat
Gross NPA stood at 2.13% as of March 2026, with net NPA at 1.09%, reflecting stable asset quality despite rapid growth.
Management Guidance
AUM growth of 30-35% CAGR over medium term
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.
Management guidance growthPAT growth of 40-45% in coming years
Profit after tax is expected to grow at 40-45% annually as operating leverage improves and branch productivity matures.
Management guidance growthBorrowing cost reduction of 20-25 bps in FY27
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 guidance marginsROA to remain above 3%
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.
Management guidance marginsKey Risks
Geographic concentration in Rajasthan
82% of AUM is concentrated in Rajasthan, making the portfolio vulnerable to regional economic disruptions, political events, or localized slowdowns.
high · analyst_questionOne-off DA transaction masks underlying profitability
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.
medium · analyst_questionAsset quality stress from rural/agri exposure
Though management downplays risk, the semi-urban and rural borrower base is vulnerable to natural calamities like El Niño, which could impact repayment capacity.
medium · analyst_questionCompetition from banks and fintechs in MSME lending
Increasing competition could pressure pricing discipline and underwriting standards, though management believes its focus on non-income-proof customers provides a moat.
medium · analyst_questionNotable 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.
Frequently Asked Questions
What was Laxmi India Finance's revenue in Q4 FY26?
Laxmi India Finance reported revenue of — in Q4 FY26, representing a — change compared to the same quarter last year.
What guidance did Laxmi India Finance management give for FY27?
AUM growth of 30-35% CAGR over medium term: 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. PAT growth of 40-45% in coming years: Profit after tax is expected to grow at 40-45% annually as operating leverage improves and branch productivity matures. Borrowing cost reduction of 20-25 bps in FY27: 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. ROA to remain above 3%: 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.
What are the key risks for Laxmi India Finance in FY27?
Key risks include Geographic concentration in Rajasthan — 82% of AUM is concentrated in Rajasthan, making the portfolio vulnerable to regional economic disruptions, political events, or localized slowdowns.; One-off DA transaction masks underlying profitability — 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.; Asset quality stress from rural/agri exposure — Though management downplays risk, the semi-urban and rural borrower base is vulnerable to natural calamities like El Niño, which could impact repayment capacity.; Competition from banks and fintechs in MSME lending — Increasing competition could pressure pricing discipline and underwriting standards, though management believes its focus on non-income-proof customers provides a moat..
Did Laxmi India Finance meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Laxmi India Finance Q4 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.