New Delhi [India], August 16: Laxmi India Finance Limited (formerly known as Laxmi India Finance Private Limited), a leading Non-Banking Financial Company (NBFC), has announced its financial results for the quarter ended June 30, 2025. The company delivered robust growth across key performance metrics, supported by strong disbursements, healthy profitability, and improved asset quality.
With a diversified presence across multiple Indian states, Laxmi India Finance continues to focus on secured MSME lending, vehicle loans, and personal/business loans. The company’s approach emphasizes responsible lending, customer-centric services, and financial inclusion, which remain the core drivers of its sustained growth.
Financial Highlights – Q1 FY26 (YoY Growth)
The results underline the company’s operational strength and prudent financial management:
- Profit After Tax (PAT): ₹9.65 crore, up 45.77% (Q1 FY25: ₹6.62 crore)
- Profit Before Tax (PBT): ₹12.77 crore, up 46.78%
- Net Interest Income (NII): ₹33.86 crore, up 41.80%
- Assets Under Management (AUM): ₹1,346.05 crore, up 29.99%
- Net Worth: ₹268.50 crore, up 28.87%
- Cost of Borrowing: Rose slightly to 11.82% from 11.49% in Q1 FY25
The double-digit growth in AUM and profitability reflects the company’s ability to capture rising credit demand while maintaining a well-diversified loan book.
Operational and Asset Quality Performance
The quarter also witnessed solid operational progress across key indicators:
- Disbursements: ₹164.92 crore, up 7.43% YoY
- Branch Network: Expanded to 159 branches across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh
- Employee Strength: Grew to 1,520 employees, up 25.31% YoY
- Gross NPA: 1.28%
- Net NPA: 0.67%, reflecting disciplined credit risk practices
- Capital Adequacy Ratio (CRAR): 20.28%, well above regulatory requirements
These figures highlight the company’s ability to maintain strong asset quality even as it continues to expand its lending operations in both urban and semi-urban geographies.
Segment-Wise Performance
Laxmi India Finance reported healthy growth across its lending segments:
- MSME & Construction Loan Portfolio: Grew 35.72% YoY to ₹1,132.17 crore, establishing itself as the company’s largest segment.
- Vehicle Loan Portfolio: Recorded modest growth of 1.57% YoY, reaching ₹183.60 crore.
- Personal & Business Loans: Maintained stability at ₹13.37 crore.
The emphasis on secured MSME loans continues to be the company’s growth engine, supported by rising demand from small and medium enterprises in India’s rapidly expanding regional economies.
Leadership Commentary
Commenting on the results, Mr. Deepak Baid, Managing Director of Laxmi India Finance Limited, said:
“Our Q1 FY26 performance reflects the resilience of our business model and the trust of our customers and stakeholders. The growth in AUM, profitability, and expansion in our network underscores our focus on building a robust and diversified credit portfolio while maintaining strong asset quality. We remain committed to leveraging technology, deepening our geographical presence, and enhancing financial inclusion.”
Strategy and Outlook
Laxmi India Finance’s strategy revolves around three key pillars:
- Strengthening MSME and Vehicle Finance – The company plans to deepen its penetration in secured MSME loans and vehicle financing, sectors that have shown consistent demand in regional markets.
- Technology-Led Growth – Digital transformation remains central to operations. From loan origination to risk management, the company is investing in technology platforms to enhance efficiency and customer experience.
- Expanding Presence in Underserved Markets – With a strong foothold in Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, and Uttar Pradesh, Laxmi India Finance is expanding its branch network further into underserved Tier-2 and Tier-3 towns.
The strong credit rating and positive outlook from rating agencies reinforce the company’s credibility with lenders and investors, enabling it to secure diversified funding sources.
Contribution to Financial Inclusion
By focusing on underserved segments such as MSMEs, small contractors, and regional entrepreneurs, Laxmi India Finance is actively contributing to India’s financial inclusion journey. The company’s responsible lending practices ensure that borrowers sustainably gain access to credit, enabling them to invest in businesses, vehicles, and other productive assets.
Conclusion
With a robust balance sheet, prudent risk management, and continued expansion of its loan book, Laxmi India Finance Limited is well-positioned to sustain its growth momentum in the coming quarters. The company’s Q1 FY26 results underscore its ability to balance growth with stability, while staying aligned with its mission of driving financial inclusion and delivering consistent value to customers, investors, and stakeholders.
Disclaimer: This article is based on information originally published by ANI News. All rights and credits for the original reporting belong to ANI News and the respective author. The content here has been adapted for informational purposes.
