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    Moneyboxx Fin.

    538446
    Financial Services·28 Jul 2025
    Management Summary

    Moneyboxx Finance Limited reported a strategic shift towards secured lending and higher-ticket loans in Q1 FY26, with AUM growing 23% YoY to INR918 crores and total income up 29% to INR59 crores. While profitability was impacted by higher credit costs and muted disbursement growth, the company is focusing on improving asset quality, reducing cost of funds, and leveraging new technologies like Cattle AI to enhance operational efficiency and risk management. Management expects profitability to improve as credit costs normalize and AUM growth picks up, targeting INR1,400 crores AUM for FY26.

    Highlights

    8
    • Asset Under Management (AUM) grew 23% YoY to INR918 crores.

    • Total Income increased 29% YoY to INR59 crores.

    • Net Interest Income grew 26% to INR39 crores.

    • Net Interest Margin (NIM) stood at 14.36%.

    • Profit After Tax (PAT) was INR24 lakhs, down from INR4.30 crores in Q1 FY25.

    • Secured loan book now constitutes 49% of AUM, up from 27% in Q1 FY25.

    • Disbursements to customers with 750+ credit score increased to 20.3% of total, up from 5% last year.

    • On-book Gross NPA rose to 7.28% and Net NPA to 3.78%, with Provision Coverage Ratio at 50%.

    What Changed2

    vs Q2 FY26

    Guidance items9 → 7 (-2)Risks discussed3 → 4 (+1)

    Key financials

    Single quarter

    08 metrics
    1. 01AUM₹918 Cr+23%YoY
    2. 02Total Income₹59 Cr+29.0%YoY
    3. 03Net Interest Income₹39 Cr+26%YoY
    4. 04NIM14.4%
    5. 05PAT₹0.24 Cr-94.4%YoY

    Segment breakdown

    AUM by State
    31.3% Madhya Pradesh Share
    Portfolio Mix
    49% Secured Loan Book Share of AUM75% On-book Portfolio Share of AUM25% Managed Book Share of AUM
    Disbursement Mix
    47% Livestock-based Disbursement Share50% Loans below INR3 lakhs Share20% Loans INR5-10 lakhs Share64% Secured Disbursement Share20.3% Disbursement to 750+ Credit Score Customers
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    The company maintains a strong liquidity buffer of INR165 crores as of June 30, 2025.

    Guidance & targets

    7
    CategoryTargetPriority
    AUM
    AUM Target
    at least INR1,400 crores
    High
    Portfolio Mix
    Secured Lending Share
    around 70%
    High
    Operating Efficiency
    Operating expenses as % of AUM
    below 10%
    Medium
    Cost of Funds
    Cost of Funds
    single digits
    Medium
    Credit Cost
    Credit Cost
    around 3%
    High
    Returns
    RoA and RoE
    Positive
    Medium
    AUM Concentration
    Madhya Pradesh AUM Share
    25%
    Medium

    AUM Growth Trajectory

    next quarter
    CurrentINR918 crores (23% YoY growth)
    TargetProgress towards INR1,400 crores for FY26

    Why it matters

    AUM growth is crucial for improving operational efficiency and overall profitability, especially after muted Q1 disbursements.

    In terms of AUM, I can tell you that we are targeting at least INR1,400 crores for this year.

    How to verify

    key_financials.metrics[label='AUM']

    Risks & concerns

    4
    RiskSeverity

    Higher Credit Costs

    Higher credit costs absorbed operating core profit, impacting PAT and RoA/RoE in Q1, but expected to normalize.Management acknowledged

    medium

    Muted Disbursement Growth

    Lower-than-expected disbursement growth in Q1 contributed to higher operating expenses as a percentage of AUM and lower profitability.Management acknowledged

    medium

    Rising GNPA/NNPA

    On-book GNPA rose to 7.28% and Net NPA to 3.78%, driven by flat AUM growth and ongoing credit cycle, but management expects slippages to normalize and asset quality to improve from Q3.Management acknowledged

    medium

    Rural Stress and MFI Impact

    Last year saw rural stress due to floods and MFI impact, leading to higher delinquencies in the Agri space, though management notes improvements with monsoon and RBI actions.Management acknowledged

    medium

    Q&A highlights

    8

    “See, because the bucket is increasing, one, on the denominator side, the AUM has not increased. So that's one of the reasons. But you still have incremental cash bounces, which move towards NPA. So that number is decreasing. Every quarter, that number is coming down from INR18 crores in December to INR13 crores in March to INR10 crores in last quarter.”

    Analyst questioned the rising 30-plus bucket despite improved portfolio, and management clarified that while AUM growth was flat, absolute NPA numbers are decreasing, and new collection strategies are being implemented.

    asked by Mihir Shah

    3 min read6 chapters

    Detailed Narrative

    01

    Strategic Shift to Secured and Higher-Ticket Lending

    Moneyboxx Finance is undergoing a significant strategic shift towards secured lending and higher-ticket loans. The share of livestock-based disbursements reduced from 64% in Q1 FY25 to 47% in Q1 FY26, while loans in the INR5-10 lakh range grew fourfold, now constituting over 20% of disbursements. This pivot is aimed at improving revenue per loan, attracting a more stable creditworthy customer base, and strengthening the asset portfolio, with a target of 70% secured lending by March 2026. The company also launched a new Salaried LAP product to further diversify its offerings.

    02

    Financial Performance Overview and Profitability Impact

    For Q1 FY26, Moneyboxx reported a 23% year-on-year growth in Asset Under Management (AUM) to INR918 crores, with total income increasing by 29% YoY to INR59 crores. Net Interest Income grew 26% to INR39 crores, and Net Interest Margin (NIM) stood at 14.36%. However, Profit After Tax (PAT) significantly declined to INR24 lakhs from INR4.30 crores in Q1 FY25. This dip in profitability was primarily attributed to muted disbursement growth during the quarter and higher credit costs, which management expects to normalize.

    03

    Asset Quality and Enhanced Collection Efforts

    On-book Gross Non-Performing Assets (GNPA) rose to 7.28% and Net NPAs to 3.78% in Q1 FY26. Management noted that while AUM growth was flat, the absolute incremental NPA is decreasing, with the 30-plus bucket showing a reduction from INR18 crores in December to INR10 crores in the last quarter. The company has intensified collection efforts by deploying a dedicated team of 103 staff and 50 tele-callers, and a legal team that filed 226 cases in FY25, targeting 3,000-4,000 cases this year. The Provision Coverage Ratio remained steady at 50%, and credit cost for the quarter was 3.65%.

    04

    Cost of Funds Reduction and Capital Adequacy

    The average borrowing IRR reduced to 12.48%, with the marginal cost of funds at 12.1% in Q1 FY26, reflecting an approximate 1% annual reduction over the past five years. Management expects the cost of funds to further decline to single digits in the medium term, supported by favorable regulatory changes, repo rate cuts, and increasing scale. The Capital to Risk-weighted Assets Ratio (CRAR) stood strong at 28.4%, bolstered by INR91 crores already received from a previously announced INR176 crore equity raise, with the remaining INR85 crores expected by March 2026.

    05

    Technological Innovation with Cattle AI

    Moneyboxx launched its proprietary Cattle AI solution in March 2025, a cutting-edge technology designed to digitize and automate cattle verification for secured rural lending. This app creates unique IDs for cattle, prevents duplicate funding, and can predict age and identify visible diseases. With over 2 lakh cattle already captured, this innovation is expected to enhance accuracy, strengthen risk control, improve the overall lending experience, and contribute to AUM growth, particularly in the livestock segment. The company also noted that these initiatives, including veterinary services, cost around INR1.5 crores this year but attract grants and improve ESG.

    06

    Operational Efficiency and Geographic Diversification

    Operating expenses as a percentage of AUM were 13% in Q1, slightly higher than FY26's 12.8% due to lower-than-expected disbursement growth. The company aims to bring this ratio below 10% in the coming years through stronger AUM growth. Geographically, Moneyboxx is diversified across 12 states, with Madhya Pradesh currently accounting for 31.3% of AUM. Management expects MP's share to organically decline to 25% over the year as other regions, particularly in the South, grow.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.