CSL Finance expands margin as Q2 revenue growth beats expense growth
Standalone net profit rose +12.64% QoQ despite a 3.28 percentage-point tax-rate increase; net NPA rose to 0.71%.
Filed 02 Nov 2026, 15:26 IST · CSL Finance Ltd (CSLFINANCE)
Key takeaways
- Revenue growth of +9.73% QoQ outpaced expense growth of +7.39%, lifting operating margin by 0.50 percentage points.
- Net profit rose +12.64% QoQ to Rs 24.95 cr even as the tax rate increased 3.28 percentage points.
- Net NPA reached 0.71%, up 11 basis points sequentially and 32 basis points year on year.
Price around the results
Revenue growth translated into higher operating profit
CSL Finance’s standalone Q2FY27 revenue rose +9.73% QoQ to Rs 76.78 cr, while operating profit increased +10.47% to Rs 59.21 cr. Profit before tax rose +17.88% to Rs 35.01 cr, but net profit grew +12.64% to Rs 24.95 cr as tax increased +33.11%. Interest rose only +1.98%, and other income contributed 1.63% of pre-tax profit, so earnings were not reliant on that line.
Expense growth supported a wider operating margin
Revenue growth of +9.73% outpaced expense growth of +7.39%, lifting operating margin by 0.50 percentage points to 77.11%. The margin was 21.71 percentage points above the 55.4% median for the 67 Financial Services peers that had reported. The available quarter-on-quarter trend shows margin improving from 76.61% in Q1FY27.
Management flagged deterioration in net asset quality
Management said in its investor presentation that net NPA was 0.71%, up 11 basis points QoQ and 32 basis points YoY. The asset-quality movement is the main counterpoint to the quarter’s improved margin and profit performance.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹77 cr | ₹70 cr | +9.73% |
| Other income | ₹1 cr | ₹0 cr | +50.00% |
| Expenses | ₹18 cr | ₹16 cr | +7.39% |
| Operating profit | ₹59 cr | ₹54 cr | +10.47% |
| Operating margin (%) | 77.11% | 76.61% | — |
| Interest | ₹24 cr | ₹24 cr | +1.98% |
| Depreciation | ₹1 cr | ₹1 cr | +3.39% |
| Profit before tax | ₹35 cr | ₹30 cr | +17.88% |
| Tax | ₹10 cr | ₹8 cr | +33.11% |
| Net profit | ₹25 cr | ₹22 cr | +12.64% |
| EPS (₹) | ₹10.95 | ₹9.72 | +12.65% |
Operating margin of 77.11% compares with a Financial Services sector median of 55.40% across 67 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Problems & risks
- Net NPA increased by 11 basis points sequentially and 32 basis points year on year.
What to watch
- Whether operating margin holds above 77.11%.
- Expense growth relative to the previous quarter’s +7.39%, against revenue growth of +9.73%.
- Net NPA against 0.71% after the reported 11-basis-point sequential increase.