Regency Fincorp Q1 FY27 Results (BSE: 540175)
Signal: Earnings grew
The read
Regency Fincorp delivered a strong Q1 FY27 with AUM nearly doubling YoY to ₹345 Cr, NIM more than doubling to 3.7%, and PAT surging 122.6% YoY to ₹7.0 Cr. The secured loan book grew 45% sequentially to ₹230 Cr, while the unsecured exposure reduced from 26% to 18%. However, asset quality weakened with GNPA rising to 0.98% from 0.40% a year ago. The company raised ₹110 Cr of the planned ₹150 Cr fundraise and continues to target AUM of ₹500-550 Cr.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹17.4 Cr | 86.5% | 45.0% |
| EBIT | ₹0 Cr | N/A | |
| Net profit | ₹7 Cr | 122.6% | |
| EPS | ₹0 | N/A | |
| EBIT margin | 0% |
P&L walk
Total Income grew 86.5% YoY driven by strong AUM growth and NIM expansion; PAT grew 122.6% YoY aided by operating leverage and controlled provisions.
Key positives
- AUM grew 89.8% YoY to ₹345.2 Cr, driven by secured loan book expansion.
- NIM expanded to 3.7% from 1.8% YoY, reflecting higher yields and better product mix.
- PAT grew 122.6% YoY to ₹7.0 Cr, with ROE improving to 7.9% from 2.4%.
- Successful launch of digital lending platform Cash My Salary with ₹23.4 Cr portfolio in first quarter.
- Reduction of unsecured loan exposure from 26% to 18%, improving portfolio quality.
Key concerns
- GNPA rose to 0.98% from 0.40% YoY, and NNPA to 0.74% from 0.30%, indicating asset quality stress.
- Finance cost increased 125% YoY, potentially impacting margins if NIM expansion slows.
- Despite strong growth, ROA remains low at 1.9% and ROE at 7.9%, suggesting capital efficiency is still modest.
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