Financial Performance Overview
CSL Finance Limited reported strong financial results for FY 2025-26 with net profit increasing 19% to ₹86.11 crore from ₹72.09 crore in FY25. Total Assets Under Management (AUM) grew 21% to ₹1,448 crore, driven primarily by wholesale lending which constituted 69% of the portfolio (₹1,001 crore), while SME Retail lending (31% at ₹447 crore) remained in consolidation phase due to industry headwinds.
Key Financial Metrics
The company maintained robust capital adequacy with CRAR of 44.74% (Tier I: 43.84%, Tier II: 0.90%) and debt-equity ratio of 1.39 times. Total income reached ₹257.02 crore (up 19%), while net interest income grew 15% to ₹168 crore. The gross loan portfolio expanded to ₹1,392.50 crore from ₹1,157.77 crore in FY25, with SME loans at ₹426.17 crore and wholesale loans at ₹966.33 crore.
Dividend and Corporate Actions
The Board recommended a final dividend of ₹10 per equity share (100%) for FY 2025-26, totaling ₹2,278.26 lakh, subject to shareholder approval at the AGM. The company also proposed reappointment of Managing Director Rohit Gupta for another five-year term starting August 2027. CSL Finance expanded its borrowing base to ₹854.17 crore through secured term loans from 36 institutions, including six new banking relationships added in FY26.
Asset Quality and Risk Management
Asset quality showed some deterioration with Gross NPA increasing to 1.10% from 0.46% in FY25, primarily due to macroeconomic conditions and revised RBI provisioning requirements. Net NPA stood at 0.81% with provision coverage of 122%. The company implemented Expected Credit Loss (ECL) provisions totaling ₹18.56 lakh against its loan portfolio. Contingent liabilities included ₹41.79 lakh from legal proceedings and undrawn commitments of ₹20,140.15 lakh.
Business Segments and Operations
Wholesale lending demonstrated strong performance with 113 active accounts and average ticket size of ₹13 crore, while SME Retail maintained 3,223 accounts with average ticket size of ₹13 lakh. The company operated through 44 branches across 7 states with 469 employees, maintaining 98% collection efficiency throughout all quarters. Technology enhancements included digital onboarding (80% digital) and 99% digital collections.
Regulatory Compliance and Governance
The financial statements were prepared in accordance with Ind AS and RBI guidelines for NBFCs, with no divergences in asset classification identified by regulators. The company maintained A- Stable credit rating from Acuité Ratings and Research. Corporate governance structure included 7 directors (2 executive, 5 non-executive with 4 independent) and comprehensive committee oversight including Audit, Risk Management, and IT Strategy committees.
Outlook and Strategy
For FY27, CSL Finance adopted a cautiously optimistic approach with wholesale lending expected to remain the primary growth driver while SME Retail anticipates recovery as operating environment improves. The focus will be on deepening existing markets rather than geographic expansion, with AUM mix expected to rebalance towards SME Retail as the vertical recovers.