1. Opening Hook

Freshly listed, flush with IPO cash, and already blaming the weather. If that doesn’t scream “NBFC season,” nothing does. 😏
Laxmi India Finance walked into its H1 FY26 concall with swagger — AUM up, cost of funds down, and capital adequacy flexed like a gym selfie. Floods in Rajasthan and MP conveniently explained the NPA blip, while management confidently promised a recovery arc worthy of a Bollywood second half.

The tone? Calm. The confidence? High. The explanations? Very detailed — sometimes too detailed. IPO expenses were waved away as “non-recurring,” MSME dominance was reaffirmed like a religious belief, and heavy commercial vehicles were politely shown the exit door.

But behind the optimism lie familiar NBFC questions: can growth stay this fast, asset quality behave, and ROE finally wake up?
Stick around. The real story hides between “LTV is only 35%” and “we can’t give guidance.” Things get interesting later.

2. At a Glance

• AUM at ₹1,386 Cr (+24.8% YoY) – Growth didn’t wait for IPO confetti to settle.
• PAT ₹19 Cr (+24.7% YoY) – Steady, unless you remove IPO costs… then suddenly heroic.
• Adjusted PAT ₹21.7 Cr (+42% YoY) – Because removing expenses always helps 😏
• Cost of Borrowing 11.10% – Banks finally warming up after IPO glow.
• GNPA 1.59% – Blame floods, festivals, and commercial vehicles.
• Capital Adequacy 31.9% – Overcapitalised and proud of it.

3. Management’s Key Commentary

“This quarter has been defining, not only because of the numbers.”
(Translation: Please don’t only look at NPAs.) 😌

“AUM has crossed ₹1,386 crores with sharper focus on portfolio quality.”
(Growth first, discipline mentioned for balance.)

“IPO infusion of ₹151.58 crores strengthened our balance sheet.”
(Equity is the new confidence booster.)

“Cost of borrowing is on a continuous downtrend.”
(Rating upgrade + IPO = cheaper money, finally.)

“98.2% of our book is secured with LTV of 45%.”
(Relax, we’ve got collateral everywhere.)

“GNPA increased due to floods and temporary cash crunch.”
(Nature and timing teamed up against us.) 🌧️

“Heavy commercial vehicles will be reduced going forward.”
(Lesson learnt. Truck loans = headache.)

4. Numbers Decoded

ROE remains the weak link despite growth and margins.

5. Analyst Questions (Decoded)

• Q: Why did NPAs rise?
  A: Floods + cash crunch + heavy CVs. Also, don’t worry.
• Q: Will MSME stay 80% of the book?
  A: Yes. MSME is religion here.