LAXMI INDIA FINANCE LTD

Provides secured loans to MSMEs and retail borrowers in semi-urban and rural India through a branch-led model with 176 outlets across six states (Rajasthan, Madhya Pradesh, Gujarat, Chhattisgarh, Uttar Pradesh, Maharashtra). Each branch handles sourcing, underwriting, servicing and collection on the ground, with credit managers visiting borrowers in person. The loan book (AUM) at end-FY26 was INR 1,626 crore, with 98% secured against physical collateral and 37% of customers borrowing for the first time. Earnings come from net interest income on this book — FY26 NII of INR 161.78 crore on total income of INR 317.03 crore — at a net interest margin of 11.26%. The principal cost is interest on borrowings, with the average rate at 10.8% in FY26 (down from 11.48%) and incremental cost at 10.25-10.30%; employee costs are 22.9% of revenue and other operating expenses 8.6%. Asset quality was moderate, with gross NPA at 2.13% and net NPA at 1.08% at end-FY26, and INR 11 crore was provisioned against an Up Money exposure. The August 2025 IPO raised INR 165.17 crore of fresh equity, lifting capital adequacy to 26.12%.