AUM
261.2 Cr
+45% YoY
Assets under management grew from 170 Cr in FY25 to 261.2 Cr in FY26.
REGENCYFINCORP
Other
15 May 2026
Regency Fincorp Ltd — Q4 FY26
Regency Fincorp reported a strong FY26 with total income of 40.1 crore (up 85% YoY) and PAT of 13.44 crore (up 170% YoY), driven by a strategic shift to secured MSME lending.
✓ Verified against BSE filing
2-Min Summary
✦ AI-Generated from Full Transcript
Regency Fincorp reported a strong FY26 with total income of 40.1 crore (up 85% YoY) and PAT of 13.44 crore (up 170% YoY), driven by a strategic shift to secured MSME lending. AUM grew 45% YoY to 261.2 crore, with secured loans now 61% of AUM vs 18% last year. The company is exiting unsecured group lending (GLV) and targeting 500-550 crore AUM in FY27 via branch expansion and digital lending. Net NPA at 0.74% remains manageable. Key risk: rapid scaling could pressure asset quality if underwriting standards slip.
Key Numbers
Secured Loan Share of AUM
61%
+43pp YoY
Secured loans now 61% of AUM vs 18% in FY25, reflecting deliberate portfolio shift.
Disbursements
142 Cr
+43% YoY
Cumulative disbursements for FY26 increased 43% YoY to 142 Cr.
Net NPA
0.74%
+43bps YoY
Net NPA rose from 0.31% in FY25 to 0.74% in FY26, still below industry average.
Management Guidance
AUM target of 500-550 Cr for FY27
Management expects to double AUM to 500-550 crore by end of FY27, driven by branch expansion and digital lending.
Management guidance growthCost of funds to reduce to 11-12% in 12 months
Current cost of funds is 13-14%; management targets reduction to 11-12% within 12 months via cheaper borrowing.
Management guidance marginsBranch network to double to 50 by FY27 end
Plans to expand from 23 branches to approximately 50 branches by end of FY27, focusing on North India.
Management guidance expansionGLV book to be fully run down by end of next calendar year
The unsecured group lending (GLV) book, currently 10.5% of AUM, will be reduced to zero by end of next calendar year.
Management guidance otherKey Risks
Asset quality deterioration from rapid scaling
Net NPA increased from 0.31% to 0.74% YoY; rapid AUM growth could pressure underwriting standards.
medium · data_observationGeographic concentration in North India
Operations are concentrated in Punjab, Haryana, Uttarakhand, and UP, exposing the company to regional economic or political risks.
medium · analyst_questionExecution risk in digital lending and PPI license
The success of the digital lending platform and PPI wallet depends on technology adoption and regulatory approvals.
medium · management_commentaryNotable Quotes
Our focus is not on the race, our focus is on the quality. We might take time to build a quality book but we will not miss the bus.
We are not doing any lending to any trading company. No real estate, no trading.
We have not done a single dispersion from the month of November onwards [in GLV] and we don't intend to do a single penny dispersion over this.
Frequently Asked Questions
What was Regency Fincorp's revenue in Q4 FY26?
Regency Fincorp reported revenue of ₹10 Cr in Q4 FY26, representing a +85% change compared to the same quarter last year.
What guidance did Regency Fincorp management give for FY27?
AUM target of 500-550 Cr for FY27: Management expects to double AUM to 500-550 crore by end of FY27, driven by branch expansion and digital lending. Cost of funds to reduce to 11-12% in 12 months: Current cost of funds is 13-14%; management targets reduction to 11-12% within 12 months via cheaper borrowing. Branch network to double to 50 by FY27 end: Plans to expand from 23 branches to approximately 50 branches by end of FY27, focusing on North India. GLV book to be fully run down by end of next calendar year: The unsecured group lending (GLV) book, currently 10.5% of AUM, will be reduced to zero by end of next calendar year.
What are the key risks for Regency Fincorp in FY27?
Key risks include Asset quality deterioration from rapid scaling — Net NPA increased from 0.31% to 0.74% YoY; rapid AUM growth could pressure underwriting standards.; Geographic concentration in North India — Operations are concentrated in Punjab, Haryana, Uttarakhand, and UP, exposing the company to regional economic or political risks.; Execution risk in digital lending and PPI license — The success of the digital lending platform and PPI wallet depends on technology adoption and regulatory approvals..
Did Regency Fincorp meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Regency Fincorp 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 verified against official BSE/NSE filings.