CSLFINANCE - CSL Finance
📢 Recent Corporate Announcements
CSL Finance Limited has scheduled its participation in the 'Bharat Connect 2026' investor conference organized by Arihant Capital Markets Limited. The event is set for Tuesday, March 10, 2026, and will be conducted virtually in a group meeting format. The company has explicitly stated that no unpublished price sensitive information (UPSI) will be shared during the discussions. This engagement is part of the company's regular investor outreach program to discuss business outlook and performance.
- Participation in 'Bharat Connect 2026' investor conference on March 10, 2026
- Event organized by Arihant Capital Markets Limited
- Meeting format is virtual and group-based
- Company confirms no Unpublished Price Sensitive Information (UPSI) will be disclosed
- Disclosure made under Regulation 30 of SEBI (LODR) Regulations 2015
CSL Finance reported a strong performance for Q3 FY26, with total revenue from operations growing 20% YoY to ₹64.16 crore. Net profit for the quarter increased by 24.7% YoY to ₹20.92 crore, despite the implementation of stricter RBI provisioning norms for project finance. The company also restructured its internal audit function, appointing Mr. Ayuush Mittaal as Internal Auditor to align with RBI guidelines. For the nine-month period ending December 2025, the company has achieved a net profit of ₹66.69 crore, up from ₹53.12 crore in the previous year.
- Total Income for Q3 FY26 rose to ₹64.44 crore compared to ₹53.70 crore in Q3 FY25.
- Net Profit (PAT) for the quarter stood at ₹20.92 crore, a significant jump from ₹16.77 crore YoY.
- Implemented revised RBI project finance provisioning norms effective Oct 1, 2025, resulting in additional impairment charges.
- Internal Auditor M/s. R. Mahajan & Associates stepped down to a consultancy role; Mr. Ayuush Mittaal appointed as new Internal Auditor.
- Basic EPS for the nine-month period improved to ₹29.70 from ₹23.65 in the corresponding previous period.
CSL Finance reported a steady performance for the quarter ended December 31, 2025, with Profit After Tax (PAT) growing 24.7% year-on-year to ₹20.92 crore. Total revenue from operations increased by 20.2% to ₹64.16 crore, driven primarily by interest income. The company noted an increase in impairment provisions due to new RBI guidelines on project finance exposures effective from October 2025. Additionally, the board approved the appointment of Mr. Ayuush Mittaal as the new Internal Auditor to align with RBI's internal audit framework.
- Net Profit for Q3 FY26 stood at ₹20.92 crore, a 24.7% increase from ₹16.77 crore in the same quarter last year.
- Total Revenue from operations grew to ₹64.16 crore compared to ₹53.39 crore in Q3 FY25.
- 9-month PAT for FY26 reached ₹66.69 crore, up 25.5% from ₹53.12 crore in the previous year.
- Impairment on financial instruments for Q3 FY26 was ₹3.77 crore, reflecting higher provisioning for project finance as per revised RBI norms.
- The company transferred loans worth ₹56.62 crore through assignment during the nine-month period ended December 2025.
CSL Finance reported a robust year-on-year performance for Q3 FY26, with Net Profit (PAT) rising 24.7% to ₹20.92 crore compared to ₹16.77 crore in the same quarter last year. Total revenue from operations grew by 20.2% YoY to reach ₹64.16 crore. However, on a sequential basis, PAT declined by 14.5% from ₹24.46 crore in Q2 FY26, primarily due to a significant increase in impairment provisions. The company implemented revised RBI provisioning norms for project finance exposures effective October 1, 2025, which led to an additional impairment charge during the quarter.
- Net Profit (PAT) for Q3 FY26 stood at ₹20.92 crore, up 24.7% YoY but down 14.5% QoQ.
- Total Revenue from operations increased to ₹64.16 crore, a 20.2% growth over Q3 FY25.
- Impairment on financial instruments rose to ₹3.77 crore from ₹1.84 crore in the previous quarter due to new RBI guidelines.
- Nine-month (9M FY26) Net Profit reached ₹66.69 crore, marking a 25.6% growth over the previous year's 9M period.
- The company appointed Mr. Ayuush Mittaal as Internal Auditor to align with the revised RBI Internal Audit Framework.
CSL Finance Limited has filed its quarterly compliance certificate under Regulation 74(5) of SEBI (Depositories and Participants) Regulations, 2018. The report, provided by MAS Services Limited, confirms that all dematerialization and rematerialization requests for the quarter ended December 31, 2025, were handled within the 15-day regulatory timeframe. This ensures that the company's electronic share records are accurately maintained and updated with the depositories. Such filings are mandatory and indicate adherence to standard corporate governance practices.
- Compliance certificate issued for the quarter ended December 31, 2025.
- Dematerialization requests processed within the mandatory 15-day limit.
- Physical certificates mutilated and cancelled after due verification.
- MAS Services Limited acted as the Registrar and Share Transfer Agent.
CSL Finance reported a strong 27.56% YoY growth in Assets Under Management (AUM), reaching INR 1,467 crore as of December 2025. The company demonstrated robust operational momentum with disbursements of INR 356 crore and collections of INR 220 crore during the quarter. It secured fresh sanctions of INR 198 crore from nine lenders, including two new ones, indicating improved credit access. With a high Capital Adequacy Ratio of 44% and a liquidity surplus of INR 163 crore, the company remains well-positioned for future growth.
- AUM increased to INR 1,467 crore, representing a 27.56% YoY growth from INR 1,150 crore.
- Quarterly disbursements reached INR 356 crore against collections of INR 220 crore.
- Secured fresh sanctions of INR 198 crore from 9 lenders and availed INR 168 crore in fresh debt.
- Maintains a robust Capital Adequacy Ratio (CAR) of approximately 44% and liquidity surplus of INR 163 crore.
- Portfolio mix shifted to 69:31 (Wholesale:SME) from 67:33 in the previous quarter.
CSL Finance Limited has announced the closure of its trading window starting January 1, 2026, in compliance with SEBI Insider Trading regulations. This closure is in anticipation of the un-audited financial results for the quarter and nine months ending December 31, 2025. The window will remain closed for all designated persons and their immediate relatives until 48 hours after the results are officially declared. The specific date for the board meeting to approve these results will be communicated at a later date.
- Trading window closure begins on Thursday, January 01, 2026.
- Closure pertains to the financial results for the quarter and nine months ended December 31, 2025.
- Window will reopen 48 hours after the declaration of the un-audited financial results.
- The restriction applies to all Designated Persons, Connected Persons, and their immediate relatives.
CSL Finance Limited announced the appointment of Mr. Prince Bhardwaj as the Chief Business Officer (CBO), effective December 09, 2025. Mr. Bhardwaj brings over 20 years of experience in Housing Finance, Affordable Lending, and Financial Services. He has held leadership roles at Sitara HFC, Aavas Financiers Ltd., Indiabulls Housing Finance Ltd., Bajaj Allianz Life Insurance, and Savvy Info Solutions. As CBO, he will lead the company's growth strategy and drive regional expansion.
- Mr. Prince Bhardwaj appointed as Chief Business Officer (CBO) effective December 09, 2025
- Prince Bhardwaj brings over 20 years of experience
- He has experience in Housing Finance, Affordable Lending, and Financial Services
Financial Performance
Revenue Growth by Segment
Total income from operations grew 16.8% YoY to INR 123.42 Cr for the half-year ended September 30, 2025, compared to INR 105.67 Cr in the previous year. In Q2 FY26, SME retail disbursements showed a notable upturn, growing by 93% YoY and 61% sequentially, while the Wholesale vertical continued steady growth, maintaining a 65% share of the total AUM as of March 31, 2025.
Geographic Revenue Split
The company's operations are highly concentrated in the Delhi-NCR region, which accounts for the vast majority of the loan book. This concentration exposes the company to regional economic fluctuations and local regulatory changes in the National Capital Region.
Profitability Margins
Return on Assets (ROA) stood at 6.46% in FY25, a decrease from 7.18% in FY24. Return on Equity (ROE) was 13.31% in FY25, marginally lower than 13.33% in FY24. The decline in ROA is attributed to increased slippages in the SME Retail segment and higher operational expenses from branch expansions.
EBITDA Margin
Pre-Provision Operating Profit (PPoP) increased 18.6% from INR 88.41 Cr in FY24 to INR 104.88 Cr in FY25. Net Profit (PAT) for FY25 was INR 72.09 Cr, up 13.8% from INR 63.36 Cr in FY24, driven by a 21.1% increase in total income net of interest expense.
Capital Expenditure
While specific INR figures for future capex are not disclosed, the company opened 14 new branches in FY25 and is investing in a SOC2-compliant AWS Cloud tech stack to power the entire loan lifecycle from onboarding to analytics.
Credit Rating & Borrowing
The company's credit rating was recently upgraded to A- Stable. The average cost of funds ranges between 11% and 12%. The company has a diverse lender profile of 32 partners, including public and private banks, having onboarded 9 new partners in FY25.
Operational Drivers
Raw Materials
Not applicable as CSL Finance is a Non-Banking Financial Company (NBFC); its primary 'raw material' is capital/debt for lending.
Key Suppliers
The company sources capital from 32 lending partners, including public and private sector banks and financial institutions. Key lenders provide term loans, with INR 372.41 Cr disbursed to CSL in FY24.
Capacity Expansion
The company expanded its physical footprint by opening 14 new branches in FY25. It aims to increase productivity per branch to drive the SME retail loan book toward a target of INR 800 Cr to INR 850 Cr.
Raw Material Costs
Interest expense is the primary cost. Total Income (net of interest expense) rose from INR 90.35 Cr in FY23 to INR 123.65 Cr in FY24, reflecting efficient management of the 11-12% cost of funds.
Manufacturing Efficiency
Operational efficiency is measured by the operating expense to earning assets ratio, which improved to 3.62% in FY24. Collection efficiency remained robust at 98% in Q2 FY26.
Logistics & Distribution
Distribution is driven by the branch network and a team of 460 professionals. Employee expenses have increased due to targeted hiring at the mid-management level to strengthen credit and operations.
Strategic Growth
Expected Growth Rate
29%
Growth Strategy
The company is shifting its product mix toward a 55:45 or 60:40 ratio between SME Retail and Wholesale within 12-18 months. Growth is driven by refining credit policies, simplifying SOPs to reduce disbursement time, and expanding the branch network to reach underbanked small businesses.
Products & Services
SME Retail loans (secured), Wholesale loans for real estate corporations, and loans for non-real estate corporations.
Brand Portfolio
CSL Finance Limited.
New Products/Services
The company is focusing on 'micro-lab' style business and has recently realigned its SME Retail segment to target larger ticket sizes and a broader customer profile to improve yield.
Market Expansion
Expansion is focused on increasing the density of branches in the North India region, specifically targeting the SME sector that lacks access to traditional banking.
Market Share & Ranking
Not disclosed in available documents, though management notes they are better placed than peers due to a 100% secured portfolio.
Strategic Alliances
The company has established partnerships with 32 lenders to ensure a steady flow of capital for disbursements, which totaled INR 293 Cr in Q2 FY26.
External Factors
Industry Trends
The NBFC industry is seeing a shift toward secured lending following stress in unsecured and MFI portfolios. CSL is positioned as a 100% secured lender, which management believes provides a competitive edge during market volatility.
Competitive Landscape
Competes with other NBFCs and banks in the SME and real estate lending space. Competition is primarily based on service delivery speed and the ability to underwrite underbanked customers using alternative data.
Competitive Moat
The moat is built on a 100% secured loan book, deep expertise in the Delhi-NCR real estate market, and a conservative risk DNA (1% provisioning). This is sustainable as long as asset quality (GNPA 0.46%) remains controlled.
Macro Economic Sensitivity
Highly sensitive to Indian economic growth and geopolitical tensions which could trigger a slowdown. A 1% increase in interest rates would directly impact the cost of the company's floating-rate borrowings.
Consumer Behavior
Small businesses are increasingly seeking faster turnaround times for credit, prompting CSL to focus on reducing disbursement times through technology.
Geopolitical Risks
Heightened geopolitical tensions are identified as a potential trigger for a domestic economic slowdown, which would reduce demand for SME and Wholesale credit.
Regulatory & Governance
Industry Regulations
Subject to RBI regulations for NBFCs, including Capital Adequacy Ratios and provisioning norms. CSL maintains a 1% provision, exceeding the 0.4% regulatory requirement.
Environmental Compliance
Not a primary factor for NBFC operations; focus is more on SOC2 compliance for data security.
Taxation Policy Impact
The company's PBT for the half-year ended Sept 30, 2025, was INR 56.43 Cr. Effective tax rates follow standard Indian corporate tax laws for NBFCs.
Risk Analysis
Key Uncertainties
Execution risk in the newer SME Retail segment and potential asset quality deterioration in the Wholesale book due to real estate sector cyclicality. GNPA rose slightly to 0.46% in FY25 from 0.44% in FY24.
Geographic Concentration Risk
Heavy concentration in the Delhi-NCR region, making the company vulnerable to local economic downturns.
Third Party Dependencies
Dependency on 32 lending partners for debt capital; any credit rating downgrade would increase the 11-12% borrowing cost.
Technology Obsolescence Risk
The company is mitigating this by hosting all core applications on AWS Cloud and implementing a future-ready tech stack for the entire loan lifecycle.
Credit & Counterparty Risk
Concentration risk is high, with 41% of AUM tied to the top 20 borrowers. Slippages in these large accounts would significantly impact the NNPA, which stood at 0.34% in FY25.