Company Overview

Regency Fincorp Limited is a specialized NBFC incorporated in 1993 focused on providing credit access to underserved and underbanked segments across India. The company operates a customer-centric lending platform offering diversified financial products including MSME/business loans, micro-credit (particularly for women borrowers), personal loans, and consumer durable financing.

Key Financial Performance – Q1 FY27

Income Statement Highlights (₹ in Crores):

  • Total Income: ₹17.4 crore (Q1 FY26: ₹9.3 crore)
  • Finance Cost & Commission Expenses: ₹5.4 crore (Q1 FY26: ₹2.4 crore)
  • Net Interest Income & Fee Income: ₹12.0 crore, up 73.9% YoY (Q1 FY26: ₹6.9 crore)
  • Employee Benefits Expense: ₹1.2 crore (Q1 FY26: ₹1.3 crore)
  • Depreciation and Amortization Expense: ₹0.2 crore (Q1 FY26: ₹0.2 crore)
  • Other Expenses: ₹0.6 crore (Q1 FY26: ₹0.5 crore)
  • Operating Expense: ₹2.1 crore (Q1 FY26: ₹2.0 crore)
  • Pre-Provisioning Operating Profit: ₹9.9 crore, up 101.7% YoY (Q1 FY26: ₹4.9 crore)
  • Provision and Write-Off: ₹0.5 crore (Q1 FY26: ₹0.5 crore)
  • Profit before tax: ₹9.4 crore, up 113.8% YoY (Q1 FY26: ₹4.4 crore)
  • Total Tax: ₹2.4 crore (Q1 FY26: ₹1.2 crore)
  • Profit After Tax: ₹7.0 crore, up 122.6% YoY (Q1 FY26: ₹3.2 crore)

Annual Financial Performance (FY26 vs FY25):

  • Total Income: ₹40.05 crore (FY25: ₹21.66 crore)
  • Net Interest Income & Fee Income: ₹27.61 crore, up 113% YoY (FY25: ₹12.95 crore)
  • Profit After Tax: ₹13.42 crore, up 170% YoY (FY25: ₹4.97 crore)

Assets Under Management (AUM)

Total AUM: ₹345 Crore (as of June 2026)

AUM Mix:

  • MSME Secured Loan: 66.6% (₹230 crore approximately)
  • MSME Unsecured Loan: 18.4% (₹63 crore approximately)
  • Joint Liability Loans for Women Borrowers: 8.1% (₹28 crore approximately)
  • Digital Lending: 6.8% (₹23 crore approximately)

Product Details:

  • MSME Secured Loan: Ticket size ₹20L-₹1Cr, tenure 24-60 months, ROI 20-24% (reducing), monthly collections, 1-2% processing fee
  • MSME Unsecured Loan: Ticket size >₹50L-1Cr, tenure 12-24 months, ROI ≤18% (flat), monthly/quarterly collections, 1-2% processing fee
  • Joint Liability Loans: Ticket size ₹30,000-₹35,000, tenure 12-18 months, ROI >24% (flat), monthly collections, 5% processing fee
  • Digital Lending: Ticket size ₹50,000-60,000, tenure 6-9 months, ROI 24% (flat), monthly collections, 3% processing fee

Debt Profile and Capital Structure

Total Debt Outstanding: ₹215 Crore (June 2026)

  • Debt-to-Equity Ratio: 1.18x
  • CRAR: 49.8%

Debt Segment Breakdown:

  • Term Loans: ₹28.2 crore (13.1%)
  • NCD: ₹94.1 crore (43.7%)
  • Unsecured Loan: ₹44.8 crore (20.8%)
  • Bank OD: ₹33.3 crore (15.5%)
  • CCD: ₹14.9 crore (6.9%)

Capital Evolution:

  • Equity (Mar'25): ₹122 crore
  • Equity (Mar'26): ₹160 crore
  • In April-May 2026, company issued fresh equity worth ₹25 crore through CCDs to fuel growth in Digital Lending & Secured Loan book

Funding Activities

During Q1 FY27, the company:

  • Successfully raised ₹50 crore through Listed NCDs
  • Raised another ₹40 crore through subsequent NCD issuance
  • Secured ₹10 crore term loan from a leading bank
  • Board approved issuance of up to ₹25 crore of privately placed Listed NCDs

Asset Quality and Risk Metrics

  • GNPA: 0.99% (FY26) vs 0.42% (FY25)
  • NNPA: 0.74% (FY26) vs 0.31% (FY25)
  • NIMs: 10.26% (FY26) vs 7.41% (FY25)
  • The company caps D/E at 3.5x with Tier 1 CRAR ≥ 25%

Technology Transformation

Company is focusing on digital lending with:

  • AI-based tools for credit scoring, lead generation, and reducing loan processing time
  • Company app 'Cash My Salary' to penetrate deeper customer base
  • 'RegPay' digital wallet offering to capitalize on rising UPI adoption

Geographical Presence

Concentrated in NCR, Punjab & Chandigarh belt with expansion to new geographies planned by FY27. Current presence includes Chandigarh, Delhi, Punjab, UP, Haryana, Himachal, Uttarakhand, and Gujarat.

Management Commentary

Mr. Sarfaraz Mallick, Co-Founder, WTD and CFO, stated: "We have begun FY27 with strong momentum, reflecting the continued execution of our strategic priorities. During the quarter, we witnessed robust growth in our secured lending portfolio, successfully launched our digital lending platform, Cash My Salary, and further strengthened the overall quality of our loan book."

Growth Targets and Outlook

AUM Targets:

  • FY27 Target: ₹500 crore
  • FY30 Vision: ₹3,000 crore+

Industry Context: India's MSME credit market reached ₹40.4 lakh crore by Mar'25 with NBFCs recording 32% CAGR in MSME lending FY21–FY24. Credit gap of ₹18.3 lakh crore remains.

Management Team

  • Mr. Gaurav Kumar: Founder & Managing Director with 20+ years experience in Banking & Capital Markets (Bank of Punjab, ICICI Bank, CitiBank)
  • Mr. Sarfaraz Mallick: Co-founder, Whole time Director & Chief Financial Officer, spearheads fund-raising initiatives
  • Leadership team averages 20+ years experience across Banking, Capital Markets, Credit & Risk domains