Regency Fincorp Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Regency Fincorp Ltd filed with BSE on 14 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
Regency Fincorp reported AUM growth of 45% year-on-year to Rs 261.2 crore for FY2026, with total income rising 85% to Rs 40.1 crore and PAT growing 170% to Rs 13.4 crore. Management described a strategic shift toward secured MSME lending, which rose to about 61% of AUM from 18% a year earlier, and a planned wind-down of the JLG microfinance book by the end of the next calendar year. The company also discussed a recent Rs 25 crore equity raise via CCDs, an RBI NOC for a PPI license, and plans to expand branches and digital lending through its Cash My Salary app and upcoming RedPay wallet.
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: INR261.2 crores (FY2026)
p. 5
“Increased by 45% year-on-year to INR261.2 crores as on 31st March 2026, as compared to INR170 crores in financial year 2025.”
Sarfaraz Mallick, page 5 of the filed PDF · View the filing
Cumulative disbursement: INR142 crores (FY2026)
p. 5
“our cumulative disbursement for the year end March 2026 stood at INR142 crores reflecting an increase of 43% year-on-year compared to financial year FY2025.”
Sarfaraz Mallick, page 5 of the filed PDF · View the filing
Total income: INR40.1 crores (FY2026)
p. 6
“our total income grew by 85% year-on-year to INR40.1 crores in FY2026, compared to INR21.7 crores in financial year 2025.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Total income: INR12 crores (Q4 FY2026)
p. 6
“For Q4 FY2026, the total income stood at INR12 crores, reflecting a 43% of growth over Q4 FY2025.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Net interest income: INR27.6 crores (FY2026)
p. 6
“Our net interest income, which is income included with fees, has doubled more to INR27.6 crores in financial year 2026, while that same Q4 2026 came in as INR7.5 crores, up to 20% on year-on-year.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Profit after tax: INR13.4 crores (FY2026)
p. 6
“our profit after tax for financial year 2026 stands at INR13.4 crores, compared to INR4.9 crores in FY2025, a growth of 170%, which is a robustic growth that we have catered in the last financial year.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Profit after tax: INR3.5 crores (Q4 FY2026)
p. 6
“PAT for the quarter grew to 37% of Y-o-Y to INR3.5 crores for fourth quarter FY2026.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Portfolio average yield: approximately 15% (FY2026)
p. 6
“In terms of the yield, our portfolio average yield stood at approximately 15%, while spread remained healthy at 7.1%, reflecting a balance approach between growth risk and profitability.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Net NPA: 0.74% (FY2026)
p. 6
“On asset quality, our net NPA stood at 0.74% in FY2026, compared to 0.31% FY2025, far better than what the market is performing on the asset contributors.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Net worth: INR106 crores (March 2026)
p. 6
“From a balance sheet perspective, our net worth is increased to INR106 crores as of March 2026, supported by internal accruals capital infusion during the year.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
CRAR: 57.6% (FY2026)
p. 6
“We maintain a healthy CRAR ratio of 57.6%, providing sufficient headroom for further growth.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Secured disbursement share: 57% (FY2026)
p. 6
“The secured disbursement contributed approximately 57% of our total disbursement in FY2026, compared to 23% in FY2025.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Secured loan book share of AUM: 61% (FY2026)
p. 6
“As a result, the secured loan book now constitutes around 61% of the total AUM, significantly higher than the 18% in our previous year FY2025.”
Sarfaraz Mallick, page 6 of the filed PDF · View the filing
Net interest margin: 10.75% to 11% (current)
p. 13
“So our NIM today stands at 10.75% around close to 11% right now, net interest margin.”
Sarfraz Malik, page 13 of the filed PDF · View the filing
Cost of funds: 13% to 14% (current)
p. 17
“So currently it is between 13% to 14% is our cost of funds.”
Sarfaraz Mallick, page 17 of the filed PDF · View the filing
Equity raised via CCDs: approximately INR25 crores (recent month)
p. 5
“I would also like to highlight that last month we raised approximately INR25 crores of equity through CCD, Compulsorily Convertible Debentures.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
JLG book share of AUM: 10.5% (current)
p. 7
“So today, if I have to give you the percentage point of view, 10.5% is my JLG book that consists today from a total AUM of INR261 crores.”
Sarfaraz Mallick, page 7 of the filed PDF · View the filing
Zero-plus DPD: INR2.2 crores (current)
p. 8
“So if I have to give my zero-plus DPD, we stand about close to INR2.2 crores of my total AUM, which stand with my zero-plus DPD.”
Sarfaraz Mallick, page 8 of the filed PDF · View the filing
90 days PAR ratio: INR65 to INR70 lakhs (current)
p. 8
“And same by if I reach to 90 days PAR ratio, I am at about close to INR65 to INR70 lakhs.”
Sarfaraz Mallick, page 8 of the filed PDF · View the filing
Collection efficiency: 95% to 96% (current)
p. 16
“So from a collection efficiency point of view, we are around today 95% to 96% of collection efficiency if a zero month is considered.”
Sarfaraz Mallick, page 16 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.
Branch network — about close to 50 branches · by year-end financial year end next year and mid of calendar year next year
stated firmly by Sarfaraz Mallick
p. 9
“Have a branch spread of about close to 50 branches by the year-end financial year end next year and mid of calendar year next year.”
Sarfaraz Mallick, page 9 of the filed PDF · View the filing
JLG book rundown — around 70% rundown by end of coming financial year, 100% rundown by end of next calendar year · next calendar year
stated firmly by Sarfaraz Mallick
p. 8
“So by end of the coming financial year, we should have around 70% of the book rundown. By end of the next calendar year, the 100% JLG book would be zero.”
Sarfaraz Mallick, page 8 of the filed PDF · View the filing
Portfolio mix — 80% MSME secured, 15% to 20% digital lending
stated firmly by Sarfaraz Mallick
p. 8
“80% of my lending will be in MSME secured percent. Between 15% to 20% will be my digital lending.”
Sarfaraz Mallick, page 8 of the filed PDF · View the filing
Cost of funds — 11% to 12%
stated as an aspiration by Sarfraz Malik
p. 13
“So our current cost of fund is right now about close to 13% to 14%, right? We want to take down so between 11% to 12%.”
Sarfraz Malik, page 13 of the filed PDF · View the filing
Cost of funds reduction to target range — borrowing to 10, 10.5 or 11% · Not more than 12 months
stated firmly by Sarfaraz Mallick
p. 17
“Not more than 12 months. Not more than 12 months, Yes absolutely.”
Sarfaraz Mallick, page 17 of the filed PDF · View the filing
Lending rate to customers — 15%-16%
stated conditionally by Sarfraz Malik
p. 12
“So we have a net spread to be maintained and we can lend at 15%-16% to our customer base and which is a very good credit quality customer base.”
Sarfraz Malik, page 12 of the filed PDF · View the filing
Net cost of funds — 10.5 to 10.25
stated conditionally by Sarfraz Malik
p. 12
“So Tejpal ji, we see that we should be able to borrow our net cost of funds anything between 10.5 to 10.25, right?”
Sarfraz Malik, page 12 of the filed PDF · View the filing
Digital wallet launch (RedPay) — launch of RedPay digital wallet · Over the next 12 months
stated firmly by Gaurav Kumar
p. 5
“Over the next 12 months, we plan to launch a digital wallet, named RedPay, which will enable smoother disbursement, repayments, and customer transactions within our ecosystem.”
Gaurav Kumar, page 5 of the filed PDF · View the filing
NIM — current level of about 10.75% to 11%
stated conditionally by Sarfraz Malik
p. 13
“If we maintain our 75% to 80% book in my secured lending and my average cost keep borrowing goes down, I keep maintaining my NIM at the level that we are today.”
Sarfraz Malik, page 13 of the filed PDF · View the filing
Geographic expansion to South India — down the line two-three years
stated as an aspiration by Sarfraz Malik
p. 11
“We are not going to the South so soon. Maybe down the line two-three years we can think of South, but we feel that there is immense business which is available and while before we go out of our region why not first concentrate itself around our own region.”
Sarfraz Malik, page 11 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 80% of lending would be MSME secured and 15-20% digital lending, with the JLG book being wound down to zero.
Answered by Sarfaraz Mallick
Asked by Daksh Jain: What percentage of AUM will be from digital lending and the MSME secured book going forward?
p. 8
“80% of my lending will be in MSME secured percent. Between 15% to 20% will be my digital lending.”
Sarfaraz Mallick, page 8 of the filed PDF · View the filing
Management described running down the unsecured book, raising Rs 400-450 crore from lenders, and doubling the branch network.
Answered by Sarfaraz Mallick
Asked by Akash Sharma: How does the company plan to scale AUM from current levels to Rs 500 crore and Rs 3,000 crore?
p. 9
“we see a strong pipeline for this year where we are raising money through lenders about close to INR400 to INR450 crores, And this entire money will be used towards scaling up the business on the borrower side”
Sarfaraz Mallick, page 9 of the filed PDF · View the filing
Management said the digital lending book's higher yield would offset the lower-yield secured book to maintain overall NIM.
Answered by Sarfraz Malik
Asked by Disha: How will the company protect NIMs while shifting toward MSME secured lending?
p. 13
“If we maintain our 75% to 80% book in my secured lending and my average cost keep borrowing goes down, I keep maintaining my NIM at the level that we are today.”
Sarfraz Malik, page 13 of the filed PDF · View the filing
Management attributed the rise to the earlier JLG/microfinance book and events like the Karja Mukti Abhiyan, saying the book is now shifting to secured and salaried lending.
Answered by Sarfraz Malik
Asked by Urmish Shah: Why did net NPA rise from 0.31% to 0.74% between FY25 and FY26?
p. 15
“There were other issues which happened in Haryana, so there was a bit NPA that rose in our book as well, which is witnessed in our balance sheet as well.”
Sarfraz Malik, page 15 of the filed PDF · View the filing
Management stated collection efficiency figures and described using in-house lawyers and third-party recovery agencies for defaults, citing two ongoing legal cases.
Answered by Sarfaraz Mallick
Asked by Urmish Shah: What is the collection efficiency and how does the company handle defaults?
p. 16
“So from a collection efficiency point of view, we are around today 95% to 96% of collection efficiency if a zero month is considered.”
Sarfaraz Mallick, page 16 of the filed PDF · View the filing
Management explained loan-to-value ratios and collateral types used for MSME secured loans.
Answered by Sarfaraz Mallick
Asked by Daksh Jain: What collateral is taken against MSME loans?
p. 7
“So basically, we take an LTV value of between 50% to 60% of a collateral value towards the loan value.”
Sarfaraz Mallick, page 7 of the filed PDF · View the filing
Risks flagged
Past NPA increase linked to microfinance (JLG) book and events like Karja Mukti Abhiyan in Punjab and Haryana
p. 15
“Since there was a -- there was a microfinance, there was a Karja Mukti Abhiyan which happened in Punjab then Haryana.”
Sarfraz Malik, page 15 of the filed PDF · View the filing
ALM mismatch risk from lending at longer tenures than borrowing tenures
p. 12
“And eventually you land up further more to raise money because your ALM mismatch is a bigger mismatch because the tenure of the loan for the existing customer base is 10 years, 12 years, 14 years versus what you have borrowed at 4 or 5 years.”
Sarfraz Malik, page 12 of the filed PDF · View the filing
Certain northern regions considered unfavorable for NBFC lending
p. 11
“There are regions which are negative which are negative for our NBFC as well, okay.”
Sarfaraz Malik, page 11 of the filed PDF · View the filing
One secured loan account in recovery via legal process
p. 7
“Fortunately, our loan book of 90 days PAR ratio from a secured loan is about just one loan ticket size, which we have already applied, we have already taken all legal matters to it.”
Sarfaraz Mallick, 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.