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    Moneyboxx Fin.

    538446
    Financial Services·29 May 2026
    Management Summary

    Moneyboxx Finance Limited navigated FY26 as a 'year of transition,' focusing on improving asset quality and shifting towards secured lending. The company reported significant improvements in collection efficiency and a reduction in NPAs. While AUM growth was moderate and profits marginal, strategic initiatives like the launch of renewable energy loans and enhanced operational efficiency are expected to drive sustainable growth in FY27, with a target of 43-44% AUM growth and credit costs below 2%.

    Highlights

    5

    • Overall collection efficiency improved to 93.5% (Page 4).

    • Gross NPA reduced to 3.59% from 6.61% last year, and Net NPA to 1.75% from 3.42% last year (Page 5).

    • Secured loans now constitute 68% of AUM, a significant increase from 45% last year (Page 4).

    • Total Income for FY26 grew by 16.58% to INR232 crores, up from INR199 crores in FY25 (Page 5).

    • Capital Adequacy Ratio remains comfortable at 29.48%, providing headroom for growth (Page 5).

    Concerns

    3

    • AUM growth was moderate at 6% (likely QoQ), with a decline versus last year due to an ARC transaction (Page 5).

    • Profit after tax for FY26 was marginal at INR1.34 crores (Page 5).

    • Employee cost as a percentage of total assets under management appears high due to low AUM, though management expects it to decrease with AUM growth (Page 7).

    Key financials

    Metrics

    10

    Periods

    3

    Headline

    5
    • AUM
      ₹893 Cr
      QoQ+6%
    • Gross NPA
      3.6%
      YoY-45.7%
    • Net NPA
      1.8%
      YoY-48.8%
    • Capital Adequacy Ratio
      29.5%
    • Collection Efficiency
      93.5%

    Q4 FY26

    1
    • Total Income
      ₹63.23 Cr
      YoY+21.6%

    FY26

    4
    • Total Income
      ₹232 Cr
      YoY+16.6%
    • Net Interest Margin
      13.9%
    • Credit Cost
      3.3%
      YoY-3.2%
    • PAT
      ₹1.34 Cr
      YoY+7.2%

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    Capital adequacy ratio of 29.48% provides sufficient headroom for future growth. Management plans to target raising some equity in the second half of FY27.

    Guidance & targets

    7
    CategoryTargetPriority
    AUM Growth
    Overall AUM Growth
    43-44%
    		High
    Portfolio Mix
    Secured AUM Percentage
    nearly 80%
    		High
    Portfolio Mix
    Renewable Energy Loans AUM Percentage
    10%
    		High
    Credit Cost
    Credit Cost Percentage
    below 2%
    		High
    Capital Raising
    Equity Raise
    some equity
    		Medium
    Branch Network
    Branch Network Expansion
    decrease
    		High
    New Products
    Digital Lending Launch
    start
    		High

    What to watch in Q1 FY27

    5

    AUM Growth for FY27

    FY27
    Current6% (QoQ, with YoY decline due to ARC)
    Target43-44% growth

    Why it matters

    AUM growth is a key indicator of business expansion and will impact operating leverage and profitability.

    So basically, for all the lenders, we have projected about 43% to 44% AUM jump for this year. (Page 6)

    Risks & concerns

    7
    RiskSeverity

    Stress in the lending industry (microfinance, unsecured, MSME)

    The lending industry, especially microfinance and unsecured segments, witnessed significant shifts and stress after MFI guardrails in July '24, impacting even parts of secured lending. — Management acknowledged

    medium

    Pressure on collections and asset quality

    Experienced pressure on collections and asset quality during the year, particularly in segments with higher customer overlap with MFI borrowers. — Management acknowledged

    medium

    High employee cost relative to AUM

    Employee costs appear high as a percentage of AUM due to lower AUM base and investment in experienced talent, expected to decrease as AUM grows. — Analyst acknowledged

    medium

    Lower yield from increased secured lending

    Secured lending inherently offers lower yields, which could impact overall profitability. — Analyst acknowledged

    medium

    Decline in demand due to tightened lending norms and macro factors

    Lenders have tightened norms across the industry, and macro factors like LPG shortages can impact demand, requiring a cautious approach. — Management acknowledged

    medium

    Potential repayment issues from agriculture productivity/rainfall

    Short rainfall or fertilizer supply issues could impact agriculture productivity, leading to repayment challenges, necessitating vigilance in underwriting. — Analyst acknowledged

    medium

    Upward movement in Gross NPA from old portfolio stress

    Stress in the lower-end secured loan segments (INR3-4 lakhs) from the old portfolio contributed to GNPA, requiring legal actions for recovery. — Analyst acknowledged

    medium

    Q&A highlights

    8

    “So last year what has happened, because we saw after the MFI crisis, we realized that bottom of the pyramid customer is really suffering very hard. So, we had to think over it. We placed a lot of effort on the collection side, going legal, which has really improved. At the same time, we had to ensure that what we lend further, because what we're realizing that it was not impacting just the unsecured lending in MFI sector, but something like even a INR3 lakh to INR4 lakh kind of loan, which those same clientele was going, they were suffering. So, we had to change our strategy to move upwards. And that's what we did.”

    Analyst questioned the moderate AUM growth despite improved asset quality, leading management to explain the strategic shift towards higher-ticket secured loans and team changes as reasons for slower growth during transition.

    asked by Rushbh Dugal

    3 min read7 chapters

    Detailed Narrative

    01

    Q4 & FY26 Financial Performance Overview

    Moneyboxx Finance Limited reported a Total Income of INR63.23 crores for Q4 FY26, a 21.60% increase from INR52 crores in Q4 FY25. For the full financial year FY26, Total Income grew by 16.58% to INR232 crores, up from INR199 crores in FY25. Despite this revenue growth, Profit After Tax (PAT) for FY26 was marginal at INR1.34 crores, a 7.20% increase from INR1.25 crores in FY25. The company's Asset Under Management (AUM) stood at INR893 crores as of March 2026, showing 6% growth (likely QoQ), though a decline YoY was noted due to an ARC transaction.

    02

    Strategic Shift Towards Secured Lending and Portfolio Quality

    FY26 was characterized as a 'year of transition' with a strategic pivot towards secured lending to enhance portfolio resilience. Secured loans now constitute 68% of the AUM, a significant increase from 45% in the previous year. The company aims to further increase this to nearly 80% of AUM by March 2027, including loans backed by guarantee programs. This shift is accompanied by a sharper and more selective sourcing strategy, focusing on higher ticket size secured loans and stronger bureau score customers, with an average ticket size in secured loans now at INR6 lakhs, and run-rate ticket sizes of INR8-9 lakhs.

    03

    Asset Quality and Collection Efficiency Improvements

    The company demonstrated significant improvements in asset quality and collection efficiency. Overall collection efficiency reached 93.5%. Gross NPA decreased substantially to 3.59% in March 2026 from 6.61% in the corresponding period last year, and Net NPA improved to 1.75% from 3.42%. Resolution rates in bucket 1 (30-60 DPD) and bucket 2 (60-90 DPD) improved to over 70% and 75% respectively, the highest levels since inception. Credit cost for FY26 was 3.32%, a slight improvement from 3.43% in FY25, with a target to bring it below 2% in FY27.

    04

    New Product Development: Renewable Energy Loans

    Moneyboxx launched renewable energy loans during the year, a new product line focused on MSME solarization. This segment is expected to become a significant part of the portfolio, targeting 10% of AUM by March 2027. Initial disbursements for renewable energy loans were INR50 lakhs in April, expanding to INR5 crores in May. These loans, with an average ticket size of INR4 lakhs and a 4-year tenure, offer a yield of 22.5% (24% including fees) and are classified as secured due to asset hypothecation and a second loss guarantee.

    05

    Operational Enhancements and Technology Adoption

    The company continues to leverage technology for operational efficiency, having built a robust digital ecosystem for sourcing, underwriting, and collection. The recently launched in-house LOS platform, Moneyboxx One, and the Sikka app have strengthened turnaround times and field productivity. Furthermore, the company has decentralized its credit underwriting model and made significant team changes at the state head level to improve ground operations.

    06

    Capital Position and Funding Strategy

    Moneyboxx maintains a comfortable capital position with a Capital Adequacy Ratio of 29.48%, providing sufficient headroom for future growth. The company continues to receive strong support from its lending partners, including banks, NBFCs, and development-focused institutions. Management indicated that while current equity is adequate for FY27 plans, they will actively seek to raise additional equity in the second half of FY27 to support long-term growth and strengthen the company's foundation.

    07

    Growth Outlook and Branch Network Strategy

    For FY27, Moneyboxx projects an AUM growth of 43-44%. The company is not planning to open new states and expects a decrease in its overall branch network as it consolidates existing branches and focuses on improving productivity in early-vintage branches. The strategy involves converting rural branches to more Tier 1 locations and focusing on OEM partnerships to drive business, with two new partnerships starting in June, in addition to existing solar partnerships.

    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.