Laxmi India Finance has posted a strong set of numbers for the first quarter of FY27. The Jaipur-based non-banking financial company reported a net profit of ₹16.57 crore for the quarter ended June 30, 2026. This marks a 69% rise from ₹9.78 crore in the same quarter last year.
The result shows that the company has made good progress on both income and profit. Its total revenue rose 34% year-on-year to ₹93.50 crore. The rise came from higher interest income as well as better fee-based income.
The company’s Board approved the unaudited financial results on August 12, 2026, after a review by statutory auditors S.C. Bapna & Associates. The auditors gave an unmodified opinion on the results. Laxmi India Finance also said that its 29th Annual General Meeting will take place on September 16, 2026, through video conference.
Net Profit Rises 69%
The biggest highlight of the quarter is the sharp rise in net profit. Laxmi India Finance earned ₹16.57 crore in Q1 FY27, compared with ₹9.78 crore in Q1 FY26. This means profit rose by 69% in one year.
The rise in profit is important because the company also faced higher costs during the quarter. Total operating expenses rose 34% to ₹29.94 crore from ₹22.37 crore a year ago. Even with this rise in costs, profit before impairment and tax increased by a strong 77% to ₹25.60 crore from ₹14.48 crore.
This gap between income growth and cost growth is a good sign. It shows that the company was able to earn more without a similar rise in its main operating costs.
Net Interest Income Shows Strong Growth
Net interest income, or NII, is a key number for a finance company. It shows the income left after the company pays the interest cost on its borrowings.
Laxmi India Finance reported NII of ₹47.06 crore in Q1 FY27. This was 39% higher than ₹33.86 crore in Q1 FY26.
Interest earned rose 27% to ₹85.44 crore from ₹67.10 crore. At the same time, interest expenses rose at a slower rate of 15% to ₹38.38 crore from ₹33.23 crore.
This difference helped the company expand its net interest income. It also points to better control over the cost of funds. The company said that its net interest margin improved as the yield on its average loan portfolio rose faster than its borrowing cost.
Fee Income Gives Another Boost
Another positive part of the result was the sharp rise in fee income.
Fees and commission income more than doubled to ₹5.67 crore in Q1 FY27 from ₹2.58 crore in the same quarter last year. Other income also rose sharply to ₹8.48 crore from ₹2.98 crore, a rise of 184%.
Total income stood at ₹55.54 crore, up 51% from ₹36.85 crore in Q1 FY26. This shows that Laxmi India Finance did not depend only on interest income for its growth.
The share of fee income in total revenue also improved to 6% from 4% a year ago. A higher share of fee income can help the company build a wider income base over time.
Costs Rise, But Profit Growth Is Faster
Employee costs were one of the main reasons for the rise in operating expenses. Employee benefit expenses increased 36% to ₹22.12 crore.
Total operating expenses, excluding impairment, stood at ₹29.94 crore compared with ₹22.37 crore in Q1 FY26. While the rise in expenses needs close watch, the faster growth in income helped protect profit.
Profit before impairment and tax rose 77% to ₹25.60 crore. This is higher than the 51% rise in total income. It suggests that the company had better operating leverage in the quarter.
In simple terms, Laxmi India Finance earned much more from its business, while its operating costs did not rise at the same pace. That helped the company deliver a 69% rise in net profit.
Asset Quality Remains Stable
For a lending company, profit alone does not tell the full story. Asset quality is also very important because weak loans can hurt future earnings.
Laxmi India Finance reported gross Stage-3 assets at 2.08% as of June 30, 2026. Net Stage-3 assets stood at 0.94%. These figures show that asset quality remained stable during the quarter.
The company also reported a capital adequacy ratio, or CRAR, of 25.32%. This is well above the regulatory requirement and gives the company a strong capital base for future business growth.
Its net worth stood at ₹482.12 crore, while the debt-equity ratio was 3.10. The company also confirmed that it met all covenants linked to its listed non-convertible debentures. These NCDs had an outstanding value of ₹55.05 crore at the end of the quarter, with an asset cover of 1.12 times.
Credit Cost Needs Close Watch
There was one area that investors should watch with care. Impairment charges, which include expected credit loss provisions, rose to ₹3.01 crore from ₹0.79 crore in Q1 FY26.
At the same time, write-offs fell to ₹0.68 crore from ₹0.92 crore. The higher impairment charge means the company has set aside more money against possible credit losses.
This does not mean that the result is weak. The company still posted strong profit growth despite the higher provision. However, future quarters should show whether credit costs stay under control as the loan book grows.
The implied tax rate was 24.37%, slightly higher than 23.42% in Q1 FY26.
AUM Crosses ₹1,600 Crore
Laxmi India Finance has also made progress on the size of its business. The company said its assets under management, or AUM, crossed ₹1,600 crore after its IPO in August 2025.
The company has a network of 184 branches across Rajasthan, Gujarat, Madhya Pradesh, Chhattisgarh, Uttar Pradesh and Maharashtra. It has a strong focus on Tier II and Tier III cities.
Its customer base is around 43,950. About 37% of its customers are first-time borrowers, while 25% are rural or semi-rural women entrepreneurs.
The lending portfolio covers several areas. These include secured MSME and SME loans, mortgage loans, business loans, loan against property, personal loans, commercial and non-commercial vehicle loans, tractor loans, two-wheelers, electric vehicles and wholesale lending.
Company Targets Further Growth
Laxmi India Finance has set clear targets for the next phase of its growth. The company aims for return on assets of 3.50% to 3.75% and return on equity of 13.50% to 14%.
It also plans to diversify its sources of funds. The company is exploring options such as external commercial borrowings and a wider mix of private and public sector bank funding. A better funding mix can help lower its cost of funds over time.
Technology is another key area. The company uses digital tools such as Tab-based LOS, Synofin LMS/LOS and Synno CRM. It aims to reduce the turnaround time for commercial vehicle loans to 24 to 48 hours.
These steps can help the company serve customers faster while it expands its branch and digital network.
What the Q1 Result Means for Investors
Overall, Laxmi India Finance delivered a strong start to FY27. The 69% rise in net profit is the main positive point, while the 39% growth in net interest income adds further strength to the result.
The rise in fee income is also encouraging because it gives the company another source of earnings. At the same time, stable Stage-3 assets and a CRAR of 25.32% provide comfort on asset quality and capital strength.
Investors should still watch impairment charges, funding costs and asset quality in the next few quarters. Fast loan growth can create risks if credit checks do not remain strong.
For now, the Q1 numbers show a finance company with healthy income growth, better operating leverage and a strong capital position. If Laxmi India Finance can maintain this pace while keeping credit costs and bad loans under control, FY27 could become an important year for the company.
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