Laxmi India Finance Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Laxmi India Finance Ltd filed with BSE on 17 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Laxmi India Finance reported Q1 FY27 assets under management of Rs 1,721.7 crore, up 28% year-on-year, with net interest income rising 39% to Rs 47.1 crore and profit after tax growing 70% to Rs 16.4 crore. Management attributed the margin improvement to a decline in the average cost of borrowing to 10.66%, even as portfolio yield stayed broadly stable. The company also reported gross NPA of 2.08% and net NPA of 0.93%, both improved sequentially, while flagging higher credit cost in the vehicle financing portfolio.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Assets under management: INR1721.7 crores (Q1 FY27)
p. 3
“Our asset under management stood at INR1721.7 crores as on Q1 '27, representing a growth of 28% year-on-year.”
Deepak Baid, page 3 of the filed PDF · View the filing
Own book: INR1626.9 crores (Q1 FY27)
p. 3
“Our own book increased by 31.7% to INR1626.9 crores.”
Deepak Baid, page 3 of the filed PDF · View the filing
Disbursement: INR232 crores (Q1 FY27)
p. 3
“Disbursement during the quarter stood at INR232 crores compared with INR166 crores in Q1 FY26.”
Deepak Baid, page 3 of the filed PDF · View the filing
Net interest income: INR47.1 crores (Q1 FY27)
p. 3
“Net interest income increased by 39% on year to year to INR47.1 crores.”
Deepak Baid, page 3 of the filed PDF · View the filing
Profit before tax: INR21.9 crores (Q1 FY27)
p. 3
“Profit before tax increased by approx 72% to INR21.9 crores, while profit after tax increased by approx 70% to”
Deepak Baid, page 3 of the filed PDF · View the filing
Return on assets: 3.45% (Q1 FY27)
p. 4
“Importantly, our ROA improved to 3.45% from 2.75% as compared to year to year.”
Deepak Baid, page 4 of the filed PDF · View the filing
Net interest margin: 11.36% (Q1 FY27)
p. 4
“Our NIM expanded to 11.36% compared with 10.43% a year ago.”
Deepak Baid, page 4 of the filed PDF · View the filing
Average cost of borrowing: 10.66% (Q1 FY27)
p. 4
“Our average cost of borrowing declined by 67 bps point year to year to 10.66%.”
Deepak Baid, page 4 of the filed PDF · View the filing
Net worth: INR482.8 crores (as on June 30, 2026)
p. 4
“Our net worth stands for net worth stands for INR482.8 crores as on June 30, 2026”
Deepak Baid, page 4 of the filed PDF · View the filing
Capital adequacy ratio: 25.32% (as on June 30, 2026)
p. 4
“our capital adequacy ratio remain stronger at 25.32% with Tier 1 capital adequacy at 24.82%.”
Deepak Baid, page 4 of the filed PDF · View the filing
Debt to equity ratio: 3.1 times (as on June 30, 2026)
p. 4
“Our debt to equity ratio stood at 3.1 times and on net basis after considering the liquidity position net debt to equity is 2.57 times.”
Deepak Baid, page 4 of the filed PDF · View the filing
Gross NPA: 2.08% (as on June 30, 2026)
p. 4
“Our gross NPA stood for 2.08% and net NPA stood for 0.93% as on June 30, 2026.”
Deepak Baid, page 4 of the filed PDF · View the filing
Credit cost: INR3.69 crores (Q1 FY27)
p. 4
“credit cost of the quarter was INR3.69 crores or you can say 0.95% compare with 0.58% in Q1 FY26.”
Deepak Baid, page 4 of the filed PDF · View the filing
Return on average net worth: 13.86% (Q1 FY27)
p. 6
“Our return on average net worth was 13.86%.”
Gopal Krishan Sain, page 6 of the filed PDF · View the filing
Portfolio yield: 21.67% (Q1 FY27)
p. 6
“Our portfolio yield remained broadly stable at 21.67%.”
Gopal Krishan Sain, page 6 of the filed PDF · View the filing
PCR: 55.22% (Q1 FY27)
p. 6
“Our PCR stood at 55.22%.”
Gopal Krishan Sain, page 6 of the filed PDF · View the filing
Borrowing raised: INR296 crores (Q1 FY27)
p. 6
“During the quarter we have raised approximately INR296 crores across 9 facilities.”
Piyush Somani, page 6 of the filed PDF · View the filing
Branch network: 194 branches across six states (as on Q1 FY27)
p. 3
“our branch network increased to 194 branches across six states.”
Deepak Baid, page 3 of the filed PDF · View the filing
Net slippages: INR3.26 crores (Q1 FY27)
p. 12
“Slippage? INR3.26 crores. .”
Gopal Krishan Sain, page 12 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM growth — 30% to 35% annually · medium term
stated firmly by Deepak Baid
p. 5
“We continue to target AUM growth approximately 30% to 35% annually.”
Deepak Baid, page 5 of the filed PDF · View the filing
PAT growth — approx 40% to 45% · FY27
stated firmly by Deepak Baid
p. 5
“We have earlier indicated PAT growth of approx 40% to 45% for the current financial year, while quarter 1 PAT growth has been significantly ahead for this range.”
Deepak Baid, page 5 of the filed PDF · View the filing
Cost of borrowing — 20 to 25 basis points reduction · coming quarters
stated conditionally by Piyush Somani
p. 7
“We continue to believe there is another 20 to 25 basis point of reduction available in our cost of borrowing over the coming quarters assuming global rate conditions remain stable, which currently are giving the RBI neutral stance.”
Piyush Somani, page 7 of the filed PDF · View the filing
Branch expansion — 30 to 35 branches · FY27
stated firmly by Kuldeep Singh
p. 9
“So this year we are planning to expand into 30 to 35 branches across the existing states.”
Kuldeep Singh, page 9 of the filed PDF · View the filing
ROA — 3.5% to 3.75% · by end of the year
stated as an aspiration by Kuldeep Singh
p. 9
“So we are targeting 3.5% to 3.75%. So I believe by end of the year we will achieve that target.”
Kuldeep Singh, page 9 of the filed PDF · View the filing
Capital raise — around INR300 odd crores · next financial year mid
stated firmly by Deepak Baid
p. 11
“So we have a plan to raise capital in next financial year we will start next financial year mid we will start the process and all and we have a plan to raise further capital around INR300 odd crores.”
Deepak Baid, page 11 of the filed PDF · View the filing
Leverage — 3.5% to 4%
stated as an aspiration by Deepak Baid
p. 11
“And by that time I believe our leverage we can easily extend our leverage to 3.5% to 4% and so that we can have a good ROE also by that time.”
Deepak Baid, page 11 of the filed PDF · View the filing
Cost to income ratio — around 44% or 42%
stated as an aspiration by Piyush Somani
p. 13
“So cost to income ratio is below 50% as of now, but I am seeing so the healthy cost of income ratio that we address or we internally believe that it will be around 44% or 42% in between of that.”
Piyush Somani, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said branches typically reach breakeven in 7 to 9 months once AUM reaches Rs 1.5-2 crore.
Answered by Kuldeep Singh
Asked by Deepesh Sancheti: How are new branches performing versus mature ones and what is the gestation period to steady-state productivity?
p. 8
“So the branch expenses and the branch income, if we calculate both, it comes around 7 to 9 months to take the breakeven stage where the AUM of a branch at around INR1.5 crores to INR2 crores.”
Kuldeep Singh, page 8 of the filed PDF · View the filing
Management said ROA is improving and targeted to reach 3.5% to 3.75% by year end.
Answered by Kuldeep Singh
Asked by Deepesh Sancheti: Is management satisfied with current ROA levels given peer comparisons?
p. 9
“ROA is almost 3.45% right now, and I believe if you compare with the peer companies, so we are very stable with it.”
Kuldeep Singh, page 9 of the filed PDF · View the filing
Management attributed most of the increase to additional provisioning on old money transaction cases and stress in the vehicle finance book.
Answered by Gopal Krishan Sain
Asked by Mikail Batliwalla: What is driving the rise in credit costs this quarter?
p. 10
“Main reason to increase in credit cost in quarter one related to we have increased 10% extra provisioning on up money transaction, for which we have already guided in March '26 as well as in December '25.”
Gopal Krishan Sain, page 10 of the filed PDF · View the filing
Management said they plan to raise fresh capital of around Rs 300-350 crore starting next fiscal year to support leverage expansion.
Answered by Piyush Somani
Asked by Shivam Rathore: How much balance sheet capacity exists before incremental equity capital is needed given CRAR moderation?
p. 11
“Once we reach that stage, definitely we will be having an additionally capital of INR300 crores, INR350 crores that we are planning so.”
Piyush Somani, page 11 of the filed PDF · View the filing
Management said they expect a further 20-25 bps reduction in borrowing costs this year, conditional on stable global rate conditions.
Answered by Piyush Somani
Asked by Seema Bajaj: How much further headroom is there for funding costs to decline and what NIM range is sustainable?
p. 13
“I mean to say that another 20 bps to 25 bps that I am seeing so will be further reduced in this year going forward basis.”
Piyush Somani, page 13 of the filed PDF · View the filing
Management said AUM growth reflects both disbursement and repayment/closure activity, and the current disbursement run rate supports AUM growth confidence.
Answered by Kuldeep Singh
Asked by Seema Bajaj: Disbursements grew faster than AUM - how should investors interpret this gap?
p. 14
“Yes, that current run rate of disbursement giving us the confidence to the AUM growth also.”
Kuldeep Singh, page 14 of the filed PDF · View the filing
Risks flagged
Elevated credit cost in vehicle financing portfolio
p. 4
“The increase was primarily attributed to our vehicle financing portfolio. We have started monitoring the segment closely while our core MSME and construction portfolio continues to show the more moderate credit cost profile.”
Deepak Baid, page 4 of the filed PDF · View the filing
Localized stress in older vintages of vehicle finance book
p. 7
“On the vehicle finance credit cost that Gopal mentioned, from our operation standpoint, this is specific to certain older vintages in specific geographies.”
Kuldeep Singh, page 7 of the filed PDF · View the filing
Additional provisioning related to old money transaction cases pending court enforcement
p. 10
“This is a case based study and this study consider current stage of case, future expected collection due to enforcement of activity.”
Gopal Krishan Sain, page 10 of the filed PDF · View the filing
Crude price increases raising costs for borrowers
p. 12
“So that is little bit we can see the incrementing cost to our borrowers and otherwise if you're going to see other things are not basically any impact on this.”
Kuldeep Singh, page 12 of the filed PDF · View the filing
Rising competitive intensity in MSME lending
p. 7
“continuing to deepen density in our existing states, and maintain underwriting discipline as competitive intensity in MSME lending increases.”
Kuldeep Singh, page 7 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.