• The document is a regulatory filing containing the transcript of the Q4 FY'26 Earnings Conference Call held on May 29, 2026, following an intimation letter dated May 23, 2026.
  • The conference call was moderated by Mr. Sayam Pokharna from TIL Advisors Private Ltd and featured management participants including Mr. Rohit Gupta (Managing Director), Mr. Naresh Chandra Varshney (Chief Financial Officer), Mr. Chandan Kumar (Head - Strategy and Business), Ms. Rachita Gupta (Whole-time Director), Mr. Atul Agrawal (President - Finance and Treasury), Mr. Chirag Gupta (Credit Head, Wholesale Segment), and Mr. Prince Bhardwaj (CBO).
  • The purpose was to discuss Q4 and FY26 financial results and business performance, with the investor presentation already uploaded on stock exchanges and the company website (www.cslfinance.in).
  • The meeting occurred after earnings announcement, and forward-looking statements were qualified with reference to risks outlined in annual reports.

Financial and Operational Highlights Discussed:

AUM Performance:

  • AUM as of Q4FY26: Rs. 1,448 crore (up 21% YoY from Rs. 1,195 crore)
  • Loan book: Rs. 1,395 crore in FY26 (up 21% YoY)
  • AUM mix: 69% wholesale, 31% SME retail
  • Q4 disbursements: Rs. 301 crores (up 5% YoY, down 16% sequentially from Q3)
  • Full-year disbursements: Rs. 1,255 crore (up 12% over FY25)
  • Collection efficiency: Consistent 98% across all quarters

Asset Quality:

  • Gross NPA: 1.1% in Q4FY26 (vs 0.46% in Q4FY25 and 1% in Q3FY26)
  • Net NPA: 0.81% (vs 0.34% in Q4FY25)
  • Higher impairments in H2 FY26 due to lower NPA resolutions
  • Over two-thirds of book is SARFAESI compliant for faster resolutions
  • Revised provisioning norms for project financing to 0.98% from 0.8% per RBI directives
  • New ECL policy approved by Board aligned with current business composition
  • No material delinquencies in SME book disbursed over past 12 months

P&L Performance:

  • Q4 FY26 Net Interest Income: Rs. 45.4 crore (up 21% YoY, 10% sequentially)
  • Full-year NII: Rs. 168 crore (up 15%)
  • Q4 FY26 PAT: Rs. 19.4 crore (up 2% YoY, down 7% sequentially)
  • Full-year PAT: Rs. 86 crore (up 19% over previous financial year)
  • ROE for FY26: 14.81% (vs 13.31% in FY25)
  • Q4 Profit before tax: Rs. 30.18 crore (up 21% YoY, 18% sequentially)

Operational Updates:

  • Branch network: 44 branches across 7 states with hub-and-spoke model
  • No net branch additions during the year due to reshuffling and relocations
  • On-boarded Bank of Baroda as new lender in Q4
  • Received repeat sanctions from several existing lenders
  • Concluded term sheet for Rs. 30 crore NCD issue
  • Lender base: 36 institutions (PSU banks, private banks, small finance banks, NBFCs)
  • Liquidity position: Rs. 110.4 crore of balance sheet liquidity
  • Leverage ratio: 1.39x as of March 31, 2026
  • Credit rating: A- Stable by Acuité Ratings and Research reaffirmed

Business Segment Performance:

  • Wholesale segment: Continued growth from strength to strength
  • SME retail: Underwhelming performance due to industry-wide consolidation, over leveraged borrow profile, stagnant income growth in MSME ecosystem, increased competitive intensity
  • Shifted focus to higher ticket sizes (Rs. 7-50 lakhs) with better quality collateral
  • Increased focus on off-book AUM in wholesale through joint lending structures with industry partners

FY27 Outlook:

  • AUM growth guidance: 15%-25%
  • Wholesale segment expected to remain strong key growth driver
  • SME retail expected to return to normalcy as operating environment improves
  • Continued disciplined growth in both business verticals
  • Tax rate expected around 27% (weighted average)
  • Credit cost expected to stabilize around 0.5%

Additional Notes Section

  • The document includes the full transcript of the conference call with Q&A session featuring analysts from Prudent Equity and Bastion Research.
  • The company explicitly stated that any forward-looking statements should be considered with risks and uncertainties outlined in annual reports.
  • The information is being made available on the company website www.cslfinance.in.