1. At a Glance
Regency Fincorp just dropped Q1 FY26 numbers that scream: “Small NBFC, big ambitions.” PAT jumped to ₹3.16 Cr (485% YoY), sales doubled to ₹7.76 Cr, and the stock is flying 113% YoY. But with promoter holding at just 16.9% and new NCDs at 15% interest, the plot thickens.
2. Introduction with Hook
Picture a neighborhood moneylender who suddenly starts wearing Armani and issuing bonds. That’s Regency. It lends to MSMEs and women entrepreneurs, charging interest fatter than samosa margins, and now, with aggressive warrant calls and NCD issuance, it’s playing in the big leagues (or trying to).
3. Business Model (WTF Do They Even Do?)
This NBFC gives working capital to small businesses and micro-credit to women/MSMEs. They also finance everything from mining equipment to office furniture – basically, if you can name it, they’ll lend for it. Think pawn shop meets startup banker.
4. Financials Overview
- Revenue (Q1 FY26): ₹7.76 Cr (+122% YoY)
- PAT: ₹3.16 Cr (+485% YoY)
- OPM: 68.8% (strong for lending)
- 5-year profit CAGR: 67%
Growth is stellar, but ROE is stuck at ~6%, which is like running fast but staying in the same place.
5. Valuation
With a P/E of 26x on FY25 EPS (₹1.30), the stock trades at a fair value range of ₹28–₹34. Not insane, but not dirt cheap either. Valuation assumes growth doesn’t trip on regulatory shoelaces.
6. What’s Cooking – News, Triggers, Drama
- Issued ₹5 Cr NCDs at 15% – high-cost debt is risky.
- 75% Warrant Call approved – equity infusion on the way.
- Promoter stake keeps falling – from 24.9% (2022) to 16.9% now.
- Growth story intact, but corporate actions smell like a season finale cliffhanger.
7. Balance Sheet
| ₹ Cr | Mar 2024 | Mar 2025 |
|---|---|---|
| Assets | 147 | 229 |
| Net Worth | 50.6 | 122 |
| Debt | 94.6 | 0 |
Debt almost vanished in FY25 – but NCDs bring it back with a vengeance.
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| CFO | 11.8 | 9.9 | 11.4 |
| CFI | -14.5 | -28.8 | -48.2 |
| CFF | 3.6 | 30.9 | 68.1 |
Cash inflows are mostly financing – organic cash is small, investments eat liquidity like a buffet.
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 6% |
| ROCE | 11% |
| P/E | 26x |
| PAT M% | 31% |
| D/E | 0 |
ROCE is fine, ROE is weak, and D/E is low – until those NCDs kick in.
10. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 13.5 | 15.7 | 20.0 |
| EBITDA | 11.0 | 12.8 | 13.7 |
| PAT | 0.92 | 1.97 | 4.98 |
Revenue crawls, profits leap. But sustainability is the big question.
11. Peer Comparison
| Company | Rev (₹ Cr) | PAT (₹ Cr) | P/E |
|---|---|---|---|
| Dhani Services | 373 | 21 | 176x |
| Centrum Capital | 3,503 | -168 | NA |
| Algoquant Fin | 234 | 31.9 | 59x |
| Regency Fincorp | 24 | 7.6 | 26x |
Regency is the small fry but growing faster than its overweight cousins.
12. Miscellaneous – Shareholding, Promoters
Promoter stake is low (16.9%) and falling. Public holds 83%. FIIs? Not interested (yet). Corporate governance hinges on whether promoters keep control or the company drifts.
13. EduInvesting Verdict™
Regency Fincorp is like that startup founder who takes personal loans to fund growth – risky but ambitious. High margins, rapid profit growth, and aggressive fundraising make it exciting. But promoter exits, low ROE, and high-cost NCDs are red flags. Keep an eye – this NBFC loves drama.
Written by EduInvesting Team | 26 July 2025
Tags: Regency Fincorp, NBFC, Microfinance, Q1 FY26 Results, EduInvesting Premium, Smallcap Stocks, Financial Services, Indian Lending
