LFIC - Lak. Fin. & Indl

📊 NSE: LFIC 🏢 Finance & Investments 📅 Last Updated: 12/14/2025 9:09

💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Portfolio Investments. Total revenue from operations for H1 FY26 reached INR 1,159.04 Lakhs, which is a 50.17% increase over the entire FY25 revenue of INR 771.81 Lakhs. This growth was primarily driven by net gains on fair value changes of INR 758.89 Lakhs in H1 FY26 compared to a net loss of INR 279.01 Lakhs in FY25.

Geographic Revenue Split

Not disclosed in available documents; however, the company is headquartered in Hyderabad, Telangana, and maintains legal proceedings regarding land in Adoni, Andhra Pradesh.

Profitability Margins

Net Profit Margin for FY25 stood at 46.38% (INR 357.98 Lakhs profit on INR 771.81 Lakhs revenue). For H1 FY26, the net profit surged to INR 823.60 Lakhs, representing a significant margin expansion due to favorable fair value adjustments on investments.

EBITDA Margin

Gross Profit (before tax) margin for FY25 was 31.52% (INR 243.26 Lakhs). In H1 FY26, Profit Before Tax reached INR 1,019.30 Lakhs, reflecting a substantial YoY improvement from the FY25 full-year performance of INR 243.26 Lakhs.

Capital Expenditure

Capital expenditure is minimal as a financial investment firm; purchase of fixed assets was INR 0.52 Lakhs in H1 FY26 and INR 1.33 Lakhs in FY25.

Credit Rating & Borrowing

Not disclosed in available documents. The company appears to be primarily equity-funded with 'Other Equity' standing at INR 5,745.86 Lakhs as of September 30, 2025.

⚙️ Operational Drivers

Raw Materials

Not applicable as LFIC is an investment company. Its primary 'inputs' are capital and financial instruments including Government Bonds (INR 400 Lakhs), NCDs (INR 100 Lakhs), and Fixed Deposits.

Import Sources

Not applicable; the company sources financial instruments and portfolio investments within the Indian capital markets.

Key Suppliers

Not applicable; the company interacts with financial institutions for Fixed Deposits and market intermediaries for portfolio investments.

Capacity Expansion

Not applicable; however, the investment portfolio grew from INR 5,220.69 Lakhs in FY24 to INR 5,437.13 Lakhs in FY25, a 4.14% increase in deployed capital.

Raw Material Costs

Not applicable; operational costs are driven by Employee Benefits (INR 189.23 Lakhs in FY25, 24.5% of revenue) and Finance Costs (INR 3.91 Lakhs in FY25).

Manufacturing Efficiency

Not applicable; efficiency is measured by investment turnover. In H1 FY26, the company sold investments worth INR 2,144.96 Lakhs and purchased INR 1,802.25 Lakhs.

Logistics & Distribution

Not applicable; the company provides financial services and portfolio management which do not require physical distribution.

📈 Strategic Growth

Expected Growth Rate

Not disclosed in available documents

Growth Strategy

Growth is achieved through active portfolio management and reinvestment of earnings. The company focuses on a mix of Government Bonds (INR 400 Lakhs), NCDs (INR 100 Lakhs), and equity instruments to balance risk and return. The strategy involves monitoring fair value changes, which contributed INR 758.89 Lakhs to revenue in H1 FY26.

Products & Services

Portfolio investment services, including investments in equities, Government Bonds, Non-Convertible Debentures (NCDs), and Fixed Deposits.

Brand Portfolio

Lakshmi Finance & Industrial Corporation Limited (LFIC).

New Products/Services

Not disclosed; the company continues to focus on its core portfolio investment activities.

Market Expansion

Not disclosed; the company maintains a consistent focus on Indian financial markets.

Strategic Alliances

The company does not have any subsidiary, associate, or joint venture companies as of September 30, 2025.

🌍 External Factors

Industry Trends

The investment industry is shifting toward more transparent reporting under Ind AS. LFIC is positioned as a debt-free investment vehicle with a strong capital base of INR 60.45 Cr as of September 2025.

Competitive Landscape

Competes with other NBFCs and investment firms for high-quality financial assets and market returns.

Competitive Moat

The company's moat is its substantial accumulated reserves and surplus (Other Equity of INR 5,745.86 Lakhs), providing a stable capital base for long-term portfolio compounding without the pressure of external debt.

Macro Economic Sensitivity

Highly sensitive to interest rate changes and stock market performance. Interest income from bank deposits and others was INR 69.55 Lakhs in FY25.

Consumer Behavior

Not applicable; demand is driven by capital market cycles rather than individual consumer behavior.

Geopolitical Risks

Indirect exposure through market volatility; geopolitical tensions affecting Indian capital markets would impact the fair value of the INR 54.37 Cr investment portfolio.

⚖️ Regulatory & Governance

Industry Regulations

Subject to RBI guidelines for NBFCs and SEBI (LODR) Regulations for listed entities. The company must maintain specific provisions for doubtful recoveries and follow Ind AS 108 for segment reporting.

Environmental Compliance

Not applicable; the company's operations are office-based with minimal environmental footprint.

Taxation Policy Impact

The company faces a current tax expense of INR 151.00 Lakhs for FY25. It has an unrecognized Minimum Alternative Tax (MAT) credit of INR 153.40 Lakhs as of September 30, 2025, due to a lack of evidence regarding future normal tax liability.

Legal Contingencies

The company has initiated legal proceedings in the District Court, Adoni (AP) to regain possession of lands costing INR 11.59 Lakhs from trespassers.

⚠️ Risk Analysis

Key Uncertainties

Market risk is the primary uncertainty; fair value fluctuations can swing from a gain of INR 758.89 Lakhs (H1 FY26) to a loss of INR 279.01 Lakhs (FY25), impacting total comprehensive income by over 100%.