CSL Finance Q2 FY27 Results (NSE: CSLFINANCE)
Signal: Earnings grew
The read
The trajectory is loan growth without equivalent earnings conversion: loan assets rose 22.1% YoY to ₹1,55,274.53 lakh and total income rose 21.2% to ₹7,735.44 lakh, but PAT growth slowed to 2.0% as finance costs rose 16.2% and impairment rose 119.3%; H1 operating cash flow was negative ₹8,136.39 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹77.35 Cr | 21.2% | 10.0% |
| Net profit | ₹24.95 Cr | 2.0% | |
| EPS | ₹10.95 | 2.0% | |
| EBIT margin | 0% |
P&L walk
Total income grew 21.2% YoY to ₹7,735.44 lakh, but finance costs rose 16.2% and impairment rose 119.3%, limiting PAT growth to 2.0% at ₹2,495.42 lakh.
Key positives
- Loan assets increased 22.1% YoY to ₹1,55,274.53 lakh, ahead of the 17.7% revenue growth recorded in the preceding Q1FY27 context.
- Employee costs rose 9.4% YoY to ₹875.69 lakh, below the 21.2% growth in total income, providing partial operating-cost absorption.
- Asset quality remained disclosed at 1.13% GNPA and 0.71% NNPA, with a 37.57% provision coverage ratio.
Key concerns
- PAT rose only 2.0% YoY to ₹2,495.42 lakh despite 21.2% total-income growth, indicating weaker earnings conversion.
- Finance costs rose 16.2% YoY to ₹2,415.96 lakh and impairment rose 119.3% to ₹403.79 lakh, together absorbing the benefit of income growth.
- H1 operating cash flow was negative ₹8,136.39 lakh versus negative ₹4,708.17 lakh a year earlier, driven partly by a ₹18,345.60 lakh increase in loans.
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