Laxmi India Finance profit falls 7% as interest costs outpace growth
Standalone margin slipped 0.49 percentage points sequentially; the presentation also disclosed a provision of up to Rs 17.64 cr against a failed direct assignment.
Filed 13 Nov 2026, 13:16 IST · Laxmi India Finance Ltd (LAXMIINDIA)
Key takeaways
- Standalone revenue grew +5.02% sequentially to Rs 98.19 cr, but net profit fell -7.00% to Rs 15.41 cr.
- Operating margin narrowed by 0.49 percentage points to 64.18% as expenses grew +6.45%, faster than revenue at +5.02%.
- Interest expense rose +9.85%, while other income contributed only 1.47% of pre-tax profit.
Price around the results
Revenue growth did not reach net profit
Standalone revenue rose +5.02% sequentially, but profit before tax declined -6.71% and net profit fell -7.00%. Interest expense increased +9.85%, outpacing revenue growth and weighing on profit conversion. EPS declined -7.26% to Rs 2.94.
Faster cost growth narrowed the operating margin
Expenses grew +6.45%, faster than revenue at +5.02%, so operating margin contracted by 0.49 percentage points. The tax rate increased by 0.26 percentage points, adding a smaller pressure below operating profit. Other income was just 1.47% of pre-tax profit, so it did not materially support earnings quality.
Margin remains above the financial-services peer median
Laxmi India Finance's 64.18% operating margin was 11.62 percentage points above the 52.56% median for 120 financial-services peers that had reported the quarter. Sequentially, however, margin moved down from 64.67%, extending the latest quarter's softer direction rather than showing an improvement.
Presentation flags assignment provision and AUM target
Management said the company had created a provision of up to Rs 17.64 cr against a direct assignment bought from UP Money Limited after it turned non-performing. The presentation said Rs 5.88 cr of that provision was recognised during the current financial year. Management also said the company is targeting approximately 30% AUM CAGR.
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 | ₹98 cr | ₹94 cr | +5.02% |
| Other income | ₹0 cr | ₹0 cr | -30.23% |
| Expenses | ₹35 cr | ₹33 cr | +6.45% |
| Operating profit | ₹63 cr | ₹60 cr | +4.22% |
| Operating margin (%) | 64.18% | 64.67% | — |
| Interest | ₹42 cr | ₹38 cr | +9.85% |
| Depreciation | ₹1 cr | ₹1 cr | +20.00% |
| Profit before tax | ₹20 cr | ₹22 cr | -6.71% |
| Tax | ₹5 cr | ₹5 cr | -5.81% |
| Net profit | ₹15 cr | ₹17 cr | -7.00% |
| EPS (₹) | ₹2.94 | ₹3.17 | -7.26% |
Operating margin of 64.18% compares with a Financial Services sector median of 52.56% across 120 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.
Guidance & outlook
- The company targets approximately 30% AUM CAGR.
Problems & risks
- The company created a provision of up to ₹17.64 crore against a direct assignment purchased from UP Money Limited that turned NPA.
- Of the total provision, ₹5.88 crore was recognised during the current financial year.
What to watch
- Whether operating margin holds above 64.18% after the sequential decline.
- Whether interest expense growth moderates from +9.85%.
- How the provision of up to Rs 17.64 cr affects subsequent asset-quality disclosures.