Laxmi India Finance Ltd Q2 FY26 – IPO ke Baad Paisa Double ya Trouble? NBFC ki 64% OPM Story with 27% YoY Sales Growth, But Interest Coverage 1.4x…

1. At a Glance

Welcome to the Laxmi India Finance Limited (LIFL) comedy special — a company that seems to be doing“Vyapar with Vyavastha”while keeping interest costs as its permanent roommate. Listed in August 2025, this Jaipur-based NBFC has already made headlines with a fat 64.6% operating margin and a ₹726 crore market cap that screams “underdog with attitude.”

At ₹139 per share, the stock trades at a P/E of18.2x, which is basically the “NBFC middle class” zone — not too cheap, not too elite like Bajaj Finance. Quarterly sales hit ₹75.7 crore (up 27.4% YoY), PAT came in at ₹9.4 crore (up 8.55%), and OPM held strong at 61.5%. But here’s the kicker — interest coverage ratio is only1.41x, meaning lenders are earning faster than shareholders can blink.

ROE stands at15.7%, and debt-to-equity at2.57x— a classic “finance business with adrenaline.” The company has expanded its AUM aggressively across MSME, vehicle, and construction loans, with 158 branches across 5 states. IPO funds of ₹17.7 crore were pumped into lending, so clearly,Laxmiis on her scooter, zooming through Rajasthan’s dusty lending lanes.

2. Introduction

Picture this: a company born in 1996, raised in the chaos of small-town lending, finally goes public in 2025 and says — “Main bhi listed hoon.” That’s Laxmi India Finance for you — a non-deposit taking NBFC that’s now out to prove it can run with the big bulls of Indian finance without tripping over its own balance sheet.

Their style? Simple. Lend to MSMEs, fund used trucks, and throw in some housing loans for good measure. Sprinkle in a dash of unsecured loans (because why not?) and suddenly you’ve got a spicy loan book worth over ₹12,700 crore AUM spread across 5 states.

But behind that desi hustle lies a disciplined machine — 47 lenders (from PSU banks to SFBs) fueling its growth, 60.4% promoter holding that shows skin in the game, and zero promoter pledging, which is almost rare enough to deserve a national award.

Still, the small crack in the windshield — the company’s interest coverage ratio. For every rupee it earns, 70 paisa goes to interest expense. That’s not a red flag yet, but if borrowing costs go up, the joke might write itself.

3. Business Model – WTF Do They Even Do?

Let’s keep it simple: LIFL is basically the neighbourhood money lender who got a CA, a website, and an IPO.

They lend to:

• MSMEs(the chaiwalas and workshop owners keeping Bharat running),
• Vehicle owners(mostly used trucks and tractors, the backbone of rural logistics),
• Home builders(the ambitious few trying to extend their house or build one for their cows), and
• Individuals(because who doesn’t need a loan to survive inflation?).

In FY25, MSME loans alone formed the backbone — ₹9,748.6 million AUM and 18,596 customers. Vehicles brought ₹2,058 million more, while housing loans contributed ₹621 million. Personal and wholesale loans were small, but growing — ₹96.8 million and ₹189.8 million respectively.

It’s a solidly diversified portfolio. Unlike fintech startups that call every app download a customer, LIFL’s numbers actually translate to real disbursed money. Loan disbursals in FY25 were ₹718 crore — a hefty 36% jump from ₹525 crore in FY24.

In short, this isn’t a “new-age fintech.” It’s an old-school lender that survived the NBFC apocalypse (remember 2018 IL&FS?) and still came out laughing.

4. Financials Overview

Let’s talk numbers — the comedy is in the details.

Quarterly Comparison (₹ crore):

Annualized EPS:1.80 × 4 =₹7.20

With that, the P/E based on annualized EPS stands near 19.3x — pretty much in line with NBFC peers like Shriram Finance and below the likes of Bajaj or Chola.

Commentary:Revenue’s growing