Laxmi India Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Laxmi India Finance Ltd filed with BSE on 19 May 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 AUM growth of over 27% year-on-year to Rs 1,626 crores for FY26, with net interest income up nearly 39% to Rs 161 crores and profit after tax up over 38% to Rs 49.7 crores. Management attributed the improvement to portfolio growth, better pricing discipline, and a reduced cost of borrowing which fell to 10.8% from 11.48% in FY25. The company also discussed a credit rating upgrade, an increase in net worth following its August 2025 IPO, and a provision made against a one-off exposure related to Up Money.
Numbers mentioned
Assets under management (AUM): INR1,626 crores (FY26)
p. 4
“Our asset under management increased to INR1,626 crores as of March '26, reflecting a strong year-on-year growth of over 27%.”
Gopal Krishan Sain, page 4 of the filed PDF · View the filing
On-book AUM: approximately INR1,519 crores (FY26)
p. 4
“Our on-book AUM stood to approximately INR1,519 crores, demonstrating healthy organic growth across our core operating markets.”
Gopal Krishan Sain, page 4 of the filed PDF · View the filing
Disbursement: INR821 crores (FY26)
p. 4
“Disbursement during the year stood at INR821 crores, while our customer base expanded to more than 42,800 customers.”
Gopal Krishan Sain, page 4 of the filed PDF · View the filing
Net interest income: INR161 crores (FY26)
p. 4
“our net interest income for financial year '26 increased by nearly 39% year-on-year to INR161 crores.”
Gopal Krishan Sain, page 4 of the filed PDF · View the filing
Profit after tax: INR49.7 crores (FY26)
p. 4
“Profit after tax for financial year '26 increased by over 38% to INR49.7 crores despite continued investment towards branch expansion, technology infrastructure, manpower, and operating”
Gopal Krishan Sain, page 4 of the filed PDF · View the filing
Return on assets: 3.08% (FY26)
p. 5
“Our profitability metrics also remained healthy during the year with return on assets at 3.08% and return on net worth at approximately 13.7%.”
Gopal Krishan Sain, page 5 of the filed PDF · View the filing
Cost of borrowing: 10.8% (FY26)
p. 5
“Our average cost of borrowing reduced to 10.8% from 11.48% in financial '25.”
Gopal Krishan Sain, page 5 of the filed PDF · View the filing
Net interest margin (NIM): 11.26% (FY26)
p. 5
“At the same time, NIM expanded to 11.26%, reflecting improving lender confidence, better pricing discipline, and gradual improvement in our funding profile.”
Gopal Krishan Sain, page 5 of the filed PDF · View the filing
Net worth: approximately INR465 crores (FY26)
p. 5
“Net worth increased sharply to approximately INR465 crores following the IPO and internal accruals, while our capital adequacy ratio improved to over 26%, providing us with adequate headroom to support future growth.”
Gopal Krishan Sain, page 5 of the filed PDF · View the filing
Gross NPA: 2.13% (as of March '26)
p. 5
“Gross NPA stood at 2.13% and net NPA stood at 1.09% as of March '26.”
Gopal Krishan Sain, page 5 of the filed PDF · View the filing
Branch network: 176 branches (FY26)
p. 4
“our branch network increased to 176 branches across six states, reflecting our continued investment towards strengthening distribution reach and improving customer access across semi-urban and rural markets.”
Gopal Krishan Sain, page 4 of the filed PDF · View the filing
Provision on Up Money exposure: INR11 crores
p. 15
“So basically this Up Money there was a balance of INR19 crores and we have made a provision of almost INR11 crores.”
Deepak Baid, page 15 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 — around 30% to 35% annually · medium term
stated as an aspiration by Deepak Baid
p. 4
“we expect a compound growth of AUM at around 30% to 35% annually over the medium terms.”
Deepak Baid, page 4 of the filed PDF · View the filing
PAT growth — around 40% to 45% · current year
stated as an aspiration by Deepak Baid
p. 4
“we believe profitability growth can remain stronger with PAT expected growth at around 40% to 45% in current year.”
Deepak Baid, page 4 of the filed PDF · View the filing
Cost of borrowing — another 20 to 25 bps · this year
stated conditionally by Piyush Somani
p. 15
“So this year we will be getting an eventually benefit of around 20 to 25 bps keeping the global scenarios in place as well if in case there is no rate hikes.”
Piyush Somani, page 15 of the filed PDF · View the filing
Return on equity — above 12%, 12.5% on a minimum side · medium term
stated as an aspiration by Piyush Somani
p. 17
“And in the medium terms I can say that we believe that it will be above 12%, 12.5% on a minimum side.”
Piyush Somani, page 17 of the filed PDF · View the filing
Return on assets — above 3%
stated as an aspiration by Piyush Somani
p. 17
“we will be trying and harder to maintain the ratios above 3% in a going forward basis so that the translation from the return on asset to debt to equity will be translated factoring to debt to return on equity on a maximum note that we see so”
Piyush Somani, page 17 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 they operate in only a few states with room to add branches and maintain disbursement pace.
Answered by Deepak Baid
Asked by Deepesh Sancheti: What gives management confidence in sustaining 30-35% AUM growth without diluting underwriting standards?
p. 7
“So we can open more branches over there and we can maintain this disbursement pace and maintain the growth in AUM size.”
Deepak Baid, page 7 of the filed PDF · View the filing
Management said breakeven typically occurs at Rs 1.5-2 crores of loans and takes 7-8 months.
Answered by Kuldeep Singh
Asked by Deepesh Sancheti: What is the breakeven AUM for a new branch?
p. 8
“So around INR1.5 crores to INR2 crores is the range where we come up with the breakeven point.”
Kuldeep Singh, page 8 of the filed PDF · View the filing
Management said incremental borrowing cost was around 10.25-10.30% with focus on bank borrowings.
Answered by Piyush Somani
Asked by Vineet Sharma: What is the incremental cost of borrowing and how will the blended cost move in FY27?
p. 11
“So basically our cost of borrowing for the last year was 11.48%, that has been came down to 10.80%, but the incremental cost stood to around 10.25% to 10.30%.”
Piyush Somani, page 11 of the filed PDF · View the filing
Management gave the breakdown by state.
Answered by Management
Asked by Vineet Sharma: What is the state-wise composition of AUM?
p. 12
“82% is from Rajasthan, around 11% is from MP, and 7% is from Gujarat and rest is from other states.”
Management, page 12 of the filed PDF · View the filing
Management explained the jump was driven by a direct assignment (DA) transaction that added upfront profit to NIM and PAT.
Answered by Management
Asked by Aryan Ajmera: Why did PAT and revenue grow so strongly while customer base grew only modestly quarter-on-quarter?
p. 13
“In Quarter 4, we have done a DA transaction, we have sold around INR41 crores pool under DA transaction and on account of this we recognize upfront profit on account of INR8 crores 66 lakh.”
Management, page 13 of the filed PDF · View the filing
Management said the PCR was healthy given the secured nature of the book and strong LTV coverage.
Answered by Deepak Baid
Asked by Rachna Mehta: How comfortable is management with the Stage 3 PCR of about 49%?
p. 14
“So we have very strong gut feelings that we will be able to receive the catch the money back.”
Deepak Baid, page 14 of the filed PDF · View the filing
Management expects recovery in coming quarters and said the provision will be added back to PAT once received.
Answered by Deepak Baid
Asked by Paras Chheda: What is the expected timeline and quantum of recovery on the Up Money exposure?
p. 15
“So we are expecting that within the coming quarters we should be able to receive get this money back from Up Money.”
Deepak Baid, page 15 of the filed PDF · View the filing
Management said their customer segment is not majorly dependent on oil-related factors, limiting exposure to such stress.
Answered by Piyush Somani
Asked by Paras Chheda: Are there stress trends in MSME or self-employed borrowers due to geopolitical/energy issues?
p. 17
“Because we are catering to a customer for a cash flow driven businesses and businesses are majorly into the rural segment which are not primary dependent upon the oil other things”
Piyush Somani, page 17 of the filed PDF · View the filing
Risks flagged
Vulnerability of semi-urban/rural customer segment to broader economic disruptions
p. 8
“But yes, vulnerable these customers are this segment is vulnerable.”
Kuldeep Singh, page 8 of the filed PDF · View the filing
One-off exposure to Up Money requiring provisioning
p. 15
“So basically this Up Money there was a balance of INR19 crores and we have made a provision of almost INR11 crores.”
Deepak Baid, page 15 of the filed PDF · View the filing
Potential slowdown from higher oil prices impacting customer segment
p. 18
“Yes. If in case that if in case the oil prices are higher, maybe there may be a slightly slowdown in our business segment as well”
Piyush Somani, page 18 of the filed PDF · View the filing
Broader industry moderation in collection efficiency
p. 5
“while the broader industry environment witnessed some moderation in collection efficiency across certain borrower segments”
Gopal Krishan Sain, page 5 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.