Laxmi India Fin. Q1 FY27 Results (NSE: LAXMIINDIA)
Signal: Earnings grew
The read
The key trajectory is strong YoY earnings growth but weaker sequential momentum: total income reached ₹93.92 Cr, +34.0% YoY and only +0.5% QoQ, while PAT rose 69.4% YoY to ₹16.57 Cr but fell 19.2% QoQ; the next confirmation point is whether the 2.08% gross Stage-3 ratio and 0.94% net Stage-3 ratio remain stable as impairment increased 115.8% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹93.5 Cr | 34.2% | +0.5% |
| EBIT | ₹60.29 Cr | 31.1% | |
| Net profit | ₹16.57 Cr | 69.4% | |
| EPS | ₹3.17 | 35.5% | |
| EBIT margin | 0 |
P&L walk
Standalone total income was ₹93.92 Cr, +34.0% YoY and +0.5% QoQ, with PAT at ₹16.57 Cr, +69.4% YoY but -19.2% QoQ; the YoY profit increase benefited from operating growth and a lower effective tax burden, while sequential momentum weakened as impairment and finance costs rose.
Key positives
- Total income of ₹93.92 Cr grew 34.0% YoY, supported by interest income of ₹85.44 Cr and fee and commission income growth from ₹2.5808 Cr to ₹5.6739 Cr.
- PAT increased 69.4% YoY to ₹16.57 Cr, materially outpacing total-income growth of 34.0%.
- Asset-quality indicators were disclosed at 2.08% gross Stage-3 assets and 0.94% net Stage-3 assets, while CRAR remained 25.32%.
- Finance costs of ₹38.3772 Cr grew 15.5% YoY, slower than total income growth of 34.0%.
Key concerns
- Impairment on financial instruments increased 115.8% YoY to ₹3.6935 Cr and 45.1% QoQ, creating a rising credit-cost watchpoint.
- PAT declined 19.2% QoQ to ₹16.57 Cr despite total income increasing 0.5% QoQ, showing loss of sequential earnings momentum.
- Basic EPS rose only 35.5% YoY to ₹3.17 versus 69.4% PAT growth because of the 1,25,203-share ESOP allotment.
- Employee benefits expense increased 35.9% YoY to ₹22.1178 Cr, broadly matching total-income growth and limiting operating-cost absorption.
Research and educational content only. Not investment advice.