CSL Finance Q1 FY27 Results (NSE: CSLFINANCE)
Signal: Earnings grew
The read
The key trajectory issue is earnings conversion rather than loan-income growth: revenue rose +17.7% YoY and EBITDA rose +16.7% to ₹5398 lakh, but PAT grew only +3.9% to ₹2214.70 lakh because finance costs increased +29.9% to ₹2369.17 lakh; GNPA at 0.95% and NNPA at 0.60% provide a currently contained asset-quality backdrop.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹69.97 Cr | 17.7% | +1.7% |
| EBIT | ₹53.39 Cr | 16.5% | |
| Net profit | ₹22.15 Cr | 3.9% | |
| EPS | ₹9.72 | 3.8% | |
| EBIT margin | 0% |
P&L walk
Revenue increased to ₹6997.02 lakh, +17.7% YoY but only +1.7% QoQ; EBITDA rose +16.7% YoY to ₹5398 lakh while PAT grew only +3.9% to ₹2214.70 lakh because finance costs increased +29.9% to ₹2369.17 lakh and tax expense rose +20.7% to ₹755.28 lakh.
Key positives
- Revenue from operations reached ₹6997.02 lakh, +17.7% YoY, led by interest income growth from ₹5597.03 lakh to ₹6586.90 lakh.
- Employee costs rose +12.7% YoY to ₹859.33 lakh, slower than revenue growth of +17.7%, while EBITDA increased +16.7% to ₹5398 lakh.
- Asset quality remained contained at 0.95% GNPA, 0.60% NNPA and 36.77% provision coverage ratio.
- The ₹260 crore NCD issuance was fully utilised for onward lending with no deviation reported, and the instruments carry an 11% coupon.
Key concerns
- Finance costs increased +29.9% YoY to ₹2369.17 lakh, 12.2 percentage points faster than revenue growth, reducing PAT growth to +3.9%.
- PAT growth of +3.9% materially lagged revenue growth of +17.7%, indicating weaker earnings conversion despite a 77.1% EBITDA margin.
- Sequential revenue growth was only +1.7%, from ₹6879.70 lakh in Q4FY26 to ₹6997.02 lakh in Q1FY27.
Research and educational content only. Not investment advice.