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    LAXMIINDIA

    LAXMIINDIA
    Financial Services·23 Feb 2026
    Management Summary

    Laxmi India Finance Limited reported a strong 9-month performance with AUM reaching ₹1,451 crores and PAT of ₹29 crores. The company is focused on MSME secured lending, expanding its branch network, and leveraging technology to improve efficiency and reduce costs. A one-off NPA hit from a direct assignment transaction impacted current profitability metrics, but management expects full recovery and aims for an ROA of 3.5-3.75% and 30% AUM growth.

    Highlights

    5

    • AUM reached 1,451 crore for the last 9 months.

    • PAT of around 29 crores for the last 9 months.

    • Return on asset (adjusted for one-off NPA) would be 3.31%.

    • Cost of funds reduced by almost 64 bps to 10.94%.

    • Collection efficiency is 89%.

    Concerns

    3

    • Gross NPA increased to 2.4% due to a one-off DA transaction default.

    • Employee cost increased from 17 crore to 19 crore this quarter.

    • Still needs to make 8 crores more provision for the DA default in Q1 FY27.

    Key financials

    Metrics

    11

    Periods

    2

    Headline

    10
    • AUM
      ₹1,451 Cr
    • PAT (9 months)
      ₹29 Cr
    • Return on Net Worth (9 months)
      11%
    • Return on Asset (9 months)
      2.5%
    • Gross NPA
      2.4%

    Q3

    1
    • Employee Cost
      ₹19 Cr

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Debt

    Debt disclosed

    Cost 10.9%

    M&A

    Up Money (Jalandhar-based NBFC)

    acquisition · integrated · AUM ₹500 crores

    Guidance & targets

    7
    CategoryTargetPriority
    Profitability
    Return on Asset (ROA)
    3.5 to 3.75%
    		High
    Growth
    AUM Growth
    30%
    		High
    Growth
    Branch AUM Growth
    25 to 30%
    		High
    Growth
    Loan Disbursement Growth
    30%
    		High
    Cost of Funds
    Cost of Funds
    single digit
    		Medium
    Rating
    Rating Upgrade
    good outlook, positive outlook
    		Medium
    Expansion
    Branch Expansion
    add Maharashtra
    		High

    Recovery from DA transaction NPA

    Q1 FY27
    Current9 crores provision made, 8 crores more needed
    TargetSignificant recovery and reduction in remaining provision

    Why it matters

    Recovery will directly add to PAT and improve asset quality metrics, confirming the 'one-off📎' nature of the hit.

    So, we have done almost 9 crores. So, now more, still 8 crores more has to be done. In Q1 that will come.

    How to verify

    key_financials.metrics[label='PAT (9 months)']

    Risks & concerns

    3
    RiskSeverity

    One-off NPA from Direct Assignment (DA) transaction

    A secured DA transaction with Jalandhar-based NBFC, Up Money (AUM 500-600 crores), defaulted, leading to an NPA hit. 9 crores provision made, 8 crores more needed. Management expects full recovery. — Management acknowledged

    medium

    Increased Employee Cost

    Employee cost increased from 17 crore to 19 crore this quarter, attributed to opening 20-23 new branches this year. Management views this as an investment for future growth. — Analyst acknowledged

    low

    Competition in MSME lending

    Competition is growing in the market, but management believes their robust systems and direct approach to finding customer income provide a USP. — Management acknowledged

    low

    Q&A highlights

    7

    “Otherwise, my return on asset is 3.31%. So, return on asset is also, would be better. The PAT has also been better and NPA would be in 0.94. So, I believe this is a one-time hit what a company has, this has come to company. But otherwise, I believe, and this is a secured transaction also. So, I believe we will be able to collect it very, very soon and this whatever collection where we get, so directly will be added to a PAT.”

    Clarifies the nature and impact of the NPA, indicating it's a one-time event with expected recovery, which significantly improves the underlying profitability metrics.

    asked by Rakesh Arora

    2 min read6 chapters

    Detailed Narrative

    01

    Company Overview and Growth Strategy

    Laxmi India Finance Limited, an NBFC headquartered in Jaipur, reported an AUM of ₹1,451 crores and PAT of ₹29 crores for the last 9 months. The company, led by MD Deepak Baid, focuses primarily on secured lending to MSMEs, constituting 83-84% of its book, with an average ticket size of ₹7-8 lakhs. The strategy involves direct customer engagement through its extensive branch network and leveraging technology for efficient operations and risk management. The company aims for a 30% AUM growth and an ROA of 3.5-3.75%.

    02

    Product Portfolio and Customer Profile

    The core product is SME MSME loans, secured by residential or commercial properties with an LTV of 45-50%. The company also offers vehicle lending for old vehicles (3-10 years old) and a small proportion of personal and business loans. Customers are typically small-time business owners in tier 2 and tier 3 cities, often non-income proof (NIP) customers without formal financial records. The company assesses their income by visiting their shops, checking diaries, and cross-referencing with neighbors and local businesses.

    03

    Asset Quality and NPA Management

    The reported Gross NPA is 2.4% and Net NPA is 1.4%. These figures were impacted by a one-off📎 default from a secured Direct Assignment (DA) transaction involving a ₹500-600 crore book from Up Money, a Jalandhar-based NBFC. The company has already made a provision of ₹9 crores and expects to make an additional ₹8 crores in Q1 FY27. Management is confident in recovering the amount due to the secured nature of the transaction and robust collection efforts, which currently yield an 89% efficiency.

    04

    Cost of Funds and Profitability Outlook

    The cost of funds has reduced by 64 basis points to 10.94%. The company is actively pursuing a rating upgrade, which is expected this financial year, to further reduce its cost of funds to a single-digit percentage. This, combined with improved operational efficiency through technology (e.g., e-signature, CKYCs) and a focus on quality, is expected to drive ROA to the targeted 3.5-3.75% and adjusted Return on Net Worth to 14.31%.

    05

    Branch Network and Sourcing Strategy

    Laxmi India Finance operates over 170 branches across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh, with plans to expand into Maharashtra this year. The company employs 1753 staff who directly source business, leveraging local knowledge. While the operating cost is currently high (around ₹90 crores), it is seen as an investment in direct customer relationships and transparency. New branches typically break even once their AUM reaches ₹1-1.5 crores, and existing branches contribute positively to the P&L.

    06

    Capital Adequacy and Future Growth

    The Capital Adequacy Ratio stands at 28-29% as of December. The company aims for a debt-to-equity leverage of 4-4.5, after which it plans to raise new funds. Currently, the focus is on organic growth of its own book, targeting a 35% CAGR, and is not actively pursuing co-lending partnerships. There are no immediate plans to enter the gold loan segment due to associated costs and risks, maintaining a focus on secured lending.

    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.