Laxmi India Finance LimitedFinancial ServicesLAXMIINDIA
Q1 FY27 concall · earnings callLaxmi India Finance Limited
Laxmi India Finance delivered a strong start to FY27 with robust growth in AUM and profitability, driven by lower funding costs and disciplined expansion, while remaining watchful on asset quality in the vehicle finance segment.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| AUM | ₹1,721.7 Cr | 28% YoY | |
| Own Book | ₹1,626.9 Cr | 31.7% YoY | |
| Disbursement | ₹232 Cr | ~40% YoY | |
| Net Interest Income | ₹47.1 Cr | 39% YoY | |
| Profit After Tax | ₹16.4 Cr | ~70% YoY | |
| ROA | 3.45% | Up from 2.75% YoY | |
| NIM | 11.36% | Up from 10.43% YoY | |
| Gross NPA | 2.08% | Improved sequentially from 2.13% in Mar '26 |
TL;DR
- AUM grew 28% YoY to INR1721.7 Cr; own book grew 31.7% to INR1626.9 Cr.
- PAT increased ~70% YoY to INR16.4 Cr; ROA improved to 3.45% from 2.75%.
- NIM expanded to 11.36% as average cost of borrowing declined 67 bps to 10.66%.
- Asset quality improved sequentially; gross NPA at 2.08%, net NPA at 0.93%.
- Liability profile strengthened with banks accounting for 84% of incremental borrowing in Q1.
- Guidance maintained: AUM growth target of 30-35% annually, PAT growth of ~40-45% for FY27.
Said on the call
“We are not looking to grow simply for the sake of balance sheet expansion. Our objective is to build a scalable, high quality lending franchise with sustainable return.”
From the Q&A
| Topic | What management said |
|---|---|
| Branch Performance and Breakeven | New branches take 7-9 months to reach breakeven, requiring AUM of INR1.5-2 Cr; one of 25 new branches is already breakeven. |
| Growth and Capital Strategy | Management plans to raise ~INR300 Cr capital in the next financial year as leverage reaches a planned level, aiming to extend leverage to 3.5-4% to improve ROE. |
| Credit Cost Increase | The rise in credit cost to 0.95% was primarily due to the vehicle financing portfolio and increased provisioning for an up money transaction; core MSME portfolio remains stable. |
| Further Funding Cost Reduction | Management sees another 20-25 bps reduction in borrowing cost over coming quarters, assuming stable rates, with current incremental borrowing cost at ~10.48%. |
| Operating Leverage and Cost-to-Income | Operating expenses grew due to network expansion; target cost-to-income ratio is 42-44%, down from below 50% currently. |
| Portfolio Slippages | Net slippages in the quarter were INR3.26 crores. |
Guidance
- Target AUM growth of approximately 30% to 35% annually.
- PAT growth target of approx 40% to 45% for the current financial year (FY27).
- ROA target of 3.5% to 3.75%.
- Expect another 20-25 bps reduction in cost of borrowing over coming quarters, assuming stable rates.
- Plan to raise further capital of around INR300 crores in the next financial year.
Source
Summary written from the transcript filed by Laxmi India Finance Limited for the call held on 13 Aug 2026; published 18 Aug 2026, 20:34 IST.
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