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    Moneyboxx Fin.

    538446
    Financial Services·13 Feb 2026
    Management Summary

    Moneyboxx Finance demonstrated strong progress in Q3 FY26, driven by a strategic pivot towards secured lending and improved asset quality. The company reported robust AUM growth, significant reductions in NPAs and credit costs, and a healthy increase in PAT. Management highlighted improving collection efficiencies, a strengthened funding profile, and an upcoming equity infusion to support future growth and profitability, targeting INR 1,500 crores AUM by FY27.

    Highlights

    8

    • AUM reached INR 878 crores as of December 2025, with underlying growth of 17% YoY (excluding ARC transaction).

    • Secured loans now constitute 60% of AUM, up from 38% a year ago, with a target of 80% by March '27.

    • Total income grew 5.6% YoY to INR 54.7 crores in Q3 FY26.

    • Profit After Tax (PAT) increased 77.6% YoY to INR 0.35 crores.

    • GNPA reduced sharply to 1.43% (from 5.6% a year ago), and NNPA declined to 0.72% (from 2.88%).

    • Credit costs moderated to 2.07% in Q3 FY26, down from 4.7% last year.

    • Marginal cost of funds reduced to 11.8%, with the average cost at 12.7%.

    • Board approved an equity raise of INR 43.3 crores, reinforcing the balance sheet and boosting CAR to 26.68%.

    Key financials

    Single quarter

    11 metrics
    1. 01AUM₹878 Cr
    2. 02Underlying AUM Growth (excl. ARC)17%
    3. 03Total Income₹54.7 Cr+5.6%YoY
    4. 04Net Interest Margin (NIM)14%
    5. 05PAT₹0.35 Cr+77.6%YoY

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    Board approved an equity raise of INR 43.3 crores to reinforce the balance sheet and support AUM growth. The funds are expected to be received within 15 days of the call date (February 13, 2026). This capital infusion is intended to support AUM growth to INR 1,500 crores easily, or up to INR 1,800 crores with co-lending/BC options.

    Guidance & targets

    8
    CategoryTargetPriority
    AUM Growth
    Secured AUM as % of total AUM
    80%
    		High
    AUM Growth
    AUM
    INR 1,500 crores
    		High
    Operating Expenses
    Operating expenses as % of average AUM
    <10%
    		High
    Cost of Funds
    Cost of funds
    single digit
    		Medium
    Credit Costs
    Credit cost
    <2%
    		High
    Asset Quality
    GNPA
    not beyond 2%
    		High
    Profitability
    ROE
    improve
    		Medium
    Profitability
    ROA
    4-5%
    		Medium

    AUM Growth Target

    FY27
    CurrentINR 878 crores (Dec 2025)
    TargetINR 1,500 crores

    Why it matters

    Achieving this AUM target is a key indicator of business expansion and market penetration, crucial for future profitability.

    For next year, the plan is to at least reach at least cross INR1,500 crores.

    How to verify

    key_financials.metrics[label='AUM']

    Risks & concerns

    3
    RiskSeverity

    MFI Crisis Impact on AUM and Opex

    The MFI crisis in FY24/25 caused AUM growth to taper, leading to higher operating expenses relative to AUM and impacting profitability. — Management acknowledged

    medium

    Profit Growth Volatility

    Profit growth has been volatile, largely due to slippages and higher operating expenses, which affected the company's profitability. — Management acknowledged

    medium

    Unfavorable Funding Market for Small NBFCs

    The Indian market has not been favorable for smaller NBFCs in the last 1-1.5 years due to turmoil in the MFI segment, making capital raising challenging. — Management acknowledged

    medium

    Q&A highlights

    8

    “So, we can give you the NPF breakdown by that, but we don't have that readily available, that cut.”

    Analyst sought granular detail on credit risk, but management indicated data was not readily available, suggesting a potential gap in reporting or internal tracking for this specific metric.

    asked by Deepak Karwa

    3 min read6 chapters

    Detailed Narrative

    01

    Strategic Shift to Secured Lending and Portfolio Quality

    Moneyboxx Finance continued its strategic pivot towards a more resilient business model, with secured loans now constituting 60% of AUM as of December 2025, a significant increase from 38% a year ago. The company aims to reach 80% secured AUM by March '27. This shift is supported by a focus on higher-quality borrowers, with the share of customers having bureau scores above 650 increasing to 71%, and higher ticket loans (above INR3 lakhs) forming a larger portion of the portfolio. This strategy is central to improving asset quality and reducing earnings volatility.

    02

    Robust Asset Quality Improvement

    The company reported significant improvements in asset quality during Q3 FY26. GNPA reduced sharply to 1.43% from 5.6% a year ago, while NNPA declined to 0.72% from 2.88%. Credit costs also moderated to 2.07% compared to 4.7% last year. Collection efficiency remains strong at around 94%, with current bucket efficiency (ex-bucket) improving to over 99% in January from 98.15% in September. Resolution rates for Bucket 1 and Bucket 2 have improved to over 60%, the highest since inception, and NPA recoveries are expected to improve significantly in FY '27.

    03

    Financial Performance and Profitability

    For Q3 FY26, total income grew 5.6% YoY to INR 54.7 crores. Despite a moderation in Net Interest Margin (NIM) to 14% from 16.6% last year due to the shift to lower-yield secured lending, Profit After Tax (PAT) saw a substantial increase of 77.6% YoY, reaching INR 0.35 crores. Management expects PAT to continue improving in coming quarters due to disciplined provisioning, steady collections, and normalization of credit costs.

    04

    Strengthened Funding Profile and Capital Infusion

    Moneyboxx Finance has significantly strengthened its funding profile, now working with 31 lenders, including 11 leading banks. The company raised a record INR 302 crores through NCDs in calendar year 2025. The average cost of funds has reduced to 12.7%, with the marginal cost of funds at 11.8% for the first time, and a gradual move towards single-digit borrowing costs is expected in the medium term. The Capital Adequacy Ratio (CAR) stands at a healthy 26.68%. Additionally, the Board approved an equity raise of INR 43.3 crores, which will further reinforce the balance sheet and support secure-led growth, with funds expected within 15 days.

    05

    Operational Efficiency and Technology Adoption

    Operating expenses remained stable sequentially, and the company targets to reduce them below 10% of average AUM over the next two years as scale builds and productivity improves. Secured-focused branches have already achieved around INR 7 crores AUM at 24 months vintage. The company leverages proprietary technology like Cattle AI to reduce processing timelines by 20-30% and enhance underwriting precision. Partnerships with organizations like Rabo Foundation and Shell Foundation provide first and second loss guarantees, offering coverage for the unsecured portfolio.

    06

    Outlook and Growth Targets

    The company is targeting an AUM of INR 1,500 crores by next year (FY27), with potential to reach INR 1,800 crores with co-lending/BC options. Management expects credit costs to decline below 2% and GNPA not to exceed 2% in FY27. ROE is anticipated to improve from next year as NPA declines and AUM grows, with a long-term aspiration of 4-5% ROA. The company is also consolidating underperforming branches and focusing on opening new branches in high-productivity geographic areas.

    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.