Synopsis: NBFC stock rallies over 7% after strong Q3 earnings, with profit rising 64% YoY and AUM expanding 21% to ₹1,451 crore, driven by steady portfolio growth and stable asset quality.
The share of this company, which operates as an NBFC-Middle Layer, focuses on financial inclusion by supporting small businesses, entrepreneurs, and individuals with MSME and vehicle loans, in focus after reporting healthy quarterly results.
With a market capitalization of Rs 566 crore, Laxmi India Finance Ltd’s shares on Wednesday made a day high of Rs 112.77 per share, up by 7.5 percent from its previous day’s close price of Rs 104.83 per share. The shares of this company have given a negative return of 33 percent since its listing. Ace Investor Mukul Mahavir Agrawal holds a 3.83 percent stake in this company.
Results Highlights
QoQ View: The company reported a net interest income growth of 0.26 percent to Rs 37.95 crore in Q3 FY26 from Rs 37.85 crore in Q2 FY26. Accompanied by a Profit before tax growth of 5.11 percent to Rs 13.43 crore in Q3 FY26 from Rs 12.78 crore in Q2 FY26 and net profit growth of 7 percent to Rs 10.06 crore in Q3 FY26 from Rs 9.40 crore in Q2 FY26.
YoY View: The company reported a net interest income growth of 38 percent to Rs 37.95 crore in Q3 FY26 from Rs 27.48 crore in Q3 FY25. Accompanied by a Profit before tax growth of 68.02 percent to Rs 13.43 crore in Q3 FY26 from Rs 7.99 crore in Q3 FY25 and net profit growth of 63.59 percent to Rs 10.06 crore in Q3 FY26 from Rs 6.15 crore in Q2 FY26.
Q3 FY26 Performance
The company delivered steady business momentum in Q3 FY26, with AUM rising 21.11 percent YoY to Rs 1,451.10 crore. The company’s book expanded 23.68 percent to Rs 1,365.02 crore, reflecting consistent portfolio growth. Improved pricing discipline lifted yields to 21.76 percent, highlighting healthy operating performance despite a one-time stress event.
Funding efficiency improved as the average cost of borrowings declined to 10.94 percent, strengthening spreads. Capital adequacy rose sharply to 28.40 percent, offering strong growth visibility. Profitability remained stable, with RoA at 2.53 percent and RoE at 11.04 percent, underlining balanced growth and financial resilience.
Asset quality remained stable, with Gross NPA at 2.40 percent and Net NPA at 1.24 percent as of December 31, 2025. Provision coverage improved to 49.19 percent, while credit cost stayed contained at 1.23 percent YoY. Employee expenses included a one-time Rs 0.45 crore provision for new labour codes.
Update on Direct Assignment Portfolio: The company acquired two Direct Assignment loan pools worth Rs 25.12 crore in January and July 2025. In Q3 FY26, the DA partner faced financial stress, leading to EMI delays. Overdues beyond 90 days were classified as NPAs, with provisions made as per RBI norms.
About the company: Incorporated in 1996, Laxmi India Finance Limited is a Jaipur-based, non-deposit-taking NBFC that provides tailored financial solutions, including MSME loans, vehicle financing, and construction loans. Primarily serving underserved, rural, and semi-urban customers across Rajasthan, Gujarat, Madhya Pradesh, and Chhattisgar
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