Laxmi India Finance reports Q2 profit of Rs 15.28 crore

Laxmi India Finance Limited reported profit of Rs 15.28 crore for the quarter ended September 30, 2026, compared with Rs 9.40 crore a year earlier, as its loan book increased to Rs 1,713.73 crore from Rs 1,480.10 crore at March 31, 2026. Interest income rose to Rs 98.19 crore, while impairment charges also increased.

How much profit did Laxmi India Finance report in Q2?

Laxmi India Finance reported Rs 15.28 crore of profit for the quarter ended September 30, 2026, up Rs 5.88 crore from Rs 9.40 crore in the quarter ended September 30, 2025. The unaudited results were reviewed by S. C. Bapna & Associates and approved by the board on November 13, 2026.

The September-quarter profit was lower than the Rs 16.43 crore reported for the quarter ended June 30, 2026. Basic earnings per share were Rs 2.94 in the September quarter, against Rs 1.90 a year earlier and Rs 3.17 in the June 2026 quarter. The equity share has a nominal value of Rs 5.

For the half year ended September 30, 2026, Laxmi India Finance reported profit of Rs 31.71 crore, compared with Rs 19.06 crore in the corresponding half year of 2025. The company had reported Rs 49.68 crore of profit for the year ended March 31, 2026, providing the full-year comparator disclosed in the results statement.

The auditor’s limited-review report said nothing had come to its attention that caused it to believe the financial statement did not make required disclosures or contained a material misstatement. A limited review provides moderate assurance and is not an audit opinion, according to the report dated November 13, 2026.

What drove Laxmi India Finance’s higher income?

Laxmi India Finance reported September-quarter interest income of Rs 98.19 crore, compared with Rs 75.67 crore in the quarter ended September 30, 2025. The Rs 22.52 crore increase accompanied the expansion in loans over the first half of the financial year.

Loans stood at Rs 1,713.73 crore at September 30, 2026, up Rs 233.64 crore from Rs 1,480.10 crore at March 31, 2026. The company operates in one reportable segment, lending to customers with similar risks and returns, and reports one geographic segment, domestic lending.

Total assets increased to Rs 2,164.29 crore at September 30 from Rs 1,817.78 crore at March 31. Financial assets totalled Rs 2,135.63 crore at the half-year date, including Rs 258.39 crore of investments and Rs 66.36 crore of cash and cash equivalents.

Not every financial-asset line increased. Bank balances other than cash and cash equivalents fell to Rs 83.98 crore from Rs 92.92 crore, while other financial assets declined to Rs 13.12 crore from Rs 18.53 crore. Receivables decreased to Rs 5.42 lakh from Rs 20.87 lakh over the same period.

How did Laxmi India Finance fund loan growth?

Laxmi India Finance funded the larger balance sheet through higher borrowings and debt securities during the six months ended September 30, 2026. Borrowings other than debt securities rose by Rs 224.24 crore to Rs 1,492.03 crore, while debt securities increased by Rs 86.69 crore to Rs 148.26 crore.

Total financial liabilities increased to Rs 1,659.23 crore at September 30 from Rs 1,347.27 crore at March 31. Total equity rose by Rs 33.09 crore to Rs 498.56 crore, comprising Rs 26.20 crore of equity share capital and Rs 472.37 crore of other equity.

The increase in paid-up share capital followed the June 2026 allotment of 125,203 equity shares to eligible employees exercising options under the employee stock option scheme. During the half year, Laxmi India Finance also granted options under its existing 2023 scheme, with May 12, 2026 as the grant date, and vested a second tranche of 135,683 options during the period ended September 30.

Operating cash flow was an outflow of Rs 185.70 crore in the six months ended September 30, 2026. The cash-flow statement recorded a Rs 241.36 crore increase in loans, while financing activities generated Rs 311.09 crore, including Rs 224.24 crore from borrowings and Rs 86.69 crore from debt securities.

Investing activities used Rs 101.38 crore in the half year, including Rs 98.58 crore for purchase or sale of investments. Cash and cash equivalents nevertheless increased by Rs 24.01 crore to Rs 66.36 crore, comprising Rs 0.96 crore of cash in hand and Rs 65.41 crore of bank balances at September 30, 2026.

Did Laxmi India Finance report higher impairment charges?

Laxmi India Finance reported impairment on financial instruments of Rs 7.69 crore in the quarter ended September 30, 2026, compared with Rs 4.77 crore in the corresponding 2025 quarter. The increase occurred alongside higher interest income and the Rs 233.64 crore rise in loans during the first half.

For the half year ended September 30, 2026, impairment on financial instruments was Rs 7.82 crore in the cash-flow statement. The company disclosed that it had not transferred loans not in default through assignment, acquired stressed loans, acquired loans in default through assignment, or transferred stressed loans during the period.

Laxmi India Finance is categorised as a Middle Layer non-banking financial company under the Reserve Bank of India’s 2025 master directions. Its listed non-convertible debentures are secured by a first and exclusive charge on receivables, with the company stating that it maintained the asset cover specified in the offer documents.

The company said it did not enter into any co-lending arrangement during the quarter ended September 30, 2026. It disclosed an existing co-lending agreement and said loans are not derecognised where associated risks have not been transferred entirely, in line with its stated Ind AS treatment.

Laxmi India Finance also reported outstanding security receipts, including Rs 23.98 crore and Rs 8.64 crore under ratings issued by Brickwork Ratings India Private Limited. It said 72,278 security-receipt units with a value of Rs 7.23 crore had been fully redeemed during the quarter ended June 30, 2026.

Conclusion

Laxmi India Finance’s September-quarter result showed that a larger loan book and higher interest income coincided with year-on-year growth in profit to Rs 15.28 crore. Loans rose by Rs 233.64 crore in six months, but this expansion also required additional funding and occurred alongside a higher quarterly impairment charge of Rs 7.69 crore.

What to watch next is the pace of loan growth from the September 30 balance of Rs 1,713.73 crore, the associated movement in borrowings of Rs 1,492.03 crore, and future impairment charges. Laxmi India Finance has disclosed an existing co-lending agreement but no co-lending arrangement in the September quarter, leaving any subsequent activity under that agreement as a disclosed matter to monitor.