LAXMIINDIA - Laxmi India Fin.

📊 NSE: LAXMIINDIA 🏢 Non Banking Financial Company (NBFC) 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

AUM grew 24.75% YoY to INR 1,386.49 Cr. MSME segment remains the primary driver, targeted to represent 80-85% of the portfolio, while Vehicle Loans contribute approximately 15%. Adjusted PAT (excluding non-recurring IPO expenses of INR 2.66 Cr) grew 42% YoY to INR 21.72 Cr.

Geographic Revenue Split

The company operates 164 branches across 5 states. Expansion into Uttar Pradesh is showing positive results with 6 branches currently operational and no bouncing in collections reported.

Profitability Margins

Yield improved by 50 bps YoY to 22.18%. Spread increased by 133 bps YoY to 10.88%. Return on Assets (ROA) stood at 2.56% (Adjusted: 2.74%) and Return on Equity (ROE) at 11% (Adjusted: 11.77%).

EBITDA Margin

Not standard for NBFC; however, the company maintains a healthy spread of 10.88% and a low credit cost of 0.72% of AUM. Opex cost stood at 7.17% on an AUM basis due to upfront branch expansion costs.

Capital Expenditure

Capital expenditure for branch setup ranges from INR 1.5 lakhs to INR 2.5 lakhs per branch depending on the tier (Tier 1: 500-600 sq ft, Tier 2: 300-400 sq ft, Tier 3: 250-400 sq ft).

Credit Rating & Borrowing

Credit rating has improved to the 'A' category. Cost of borrowing reduced by 63 bps YoY to 11.10%.

⚙️ Operational Drivers

Raw Materials

Debt Capital/Bank Borrowings (primary input for lending operations)

Import Sources

Not applicable (Domestic borrowing)

Key Suppliers

Bank of Baroda, South Indian Bank, Karur Vysya Bank (newly onboarded lenders), along with existing PSU banks, private banks, and small finance banks.

Capacity Expansion

Current network of 164 branches. Planned addition of 29 branches in FY26 (6 already added in H1). Planning to enter one additional state by the end of the financial year.

Raw Material Costs

Borrowing cost is 11.10% of total debt. The company aims to further reduce this by onboarding more PSU banks and leveraging its improved 'A' credit rating.

Manufacturing Efficiency

Branch-level breakeven is achieved in 7-8 months with an AUM of approximately INR 1.5 Cr. Full breakeven (including HO costs) is achieved within 1.5 years.

Logistics & Distribution

Not applicable.

📈 Strategic Growth

Expected Growth Rate

35-40%

Growth Strategy

Growth will be achieved through aggressive branch expansion (29 new branches planned), entering new states, and maintaining a 30-35% historical CAGR. The company is shifting focus from high-risk heavy commercial vehicles to LCVs, private vehicles, and multi-rooted vehicles while keeping MSME as the core product (80-85% mix).

Products & Services

MSME Loans (average ticket size INR 7-8 lakhs), Used Vehicle Loans (LCV, private, and multi-rooted vehicles).

Brand Portfolio

Laxmi India Finance Limited

New Products/Services

Focusing on multi-rooted and private vehicle loans as a shift from heavy commercial vehicles.

Market Expansion

Expanding footprint in Uttar Pradesh and planning entry into one more state by FY26 end.

Strategic Alliances

Lending partnerships with Bank of Baroda, South Indian Bank, and Karur Vysya Bank.

🌍 External Factors

Industry Trends

The NBFC sector is seeing a slowdown in heavy commercial vehicles but growth in rural MSME and LCV segments. Laxmi India is positioning itself in rural/semi-rural areas to capture this growth.

Competitive Landscape

Peers include HDFC and Five Star Business Finance (mentioned in context of ticket size and security).

Competitive Moat

Moat built on deep rural/semi-rural presence and disciplined underwriting (GNPA 1.59%). Sustainability is supported by a high Capital Adequacy Ratio of 31.90% post-IPO.

Macro Economic Sensitivity

Highly sensitive to rural economy and agriculture production. GST regime changes have boosted the purchasing capacity of small customers.

Consumer Behavior

Improved repayment behavior noted due to enhanced liquidity and positive sentiments following the festival season.

Geopolitical Risks

Not applicable.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with SEBI (LODR) Regulations 2015 and SEBI (Depositories and Participants) Regulations 2018.

Legal Contingencies

No specific pending court cases or values disclosed; company confirms no dematerialization requests were pending for the quarter ended December 31, 2025.