The non-banking financial company reported a consolidated profit after tax of Rs. 3,003 crore for FY26, excluding the impact of labour code provisions considered in the quarter ended December 31, 2025, representing a year-on-year growth of 14 percent. For the fourth quarter ended March 31, 2026, the company posted a consolidated profit after tax of Rs. 807 crore, reflecting a 27 percent increase compared to the same period last year.
The company’s retail franchise witnessed strong momentum during the year, with the retail book size rising to Rs. 1,19,508 crore, an increase of 26 percent year-on-year. The consolidated book stood at Rs. 1,21,728 crore for FY26. Retail disbursements reached an all-time high of Rs. 83,213 crore, up 39 percent year-on-year, while quarterly disbursements peaked at Rs. 24,107 crore, registering a sharp 62 percent increase in the fourth quarter.
The board of directors has recommended a dividend of Rs. 2.75 per equity share for the financial year ended March 31, 2026.
During the year, the company continued to strengthen its credit discipline, risk management systems, and digital capabilities while accelerating its transition toward an artificial intelligence-enabled lending model. Following the successful completion of its previous strategic roadmap, the company announced its next five-year strategic plan, Lakshya 2031, aimed at positioning itself as a risk-first and technology-first multi-product retail financier. The plan targets consistent book growth of over 20 percent, credit cost below 2 percent, return on assets between 3 percent and 3.2 percent, and return on equity between 16 percent and 18 percent.
The company’s leadership attributed the performance to disciplined execution across business cycles, even amid macroeconomic headwinds, including initial stress in the microfinance segment and geopolitical uncertainties toward the end of the year. Management noted that improvements in disbursement levels and collection efficiency in microfinance have now returned close to pre-crisis levels, supporting expectations of stability in the segment in FY27.
The digital ecosystem of the company also expanded significantly, with its customer-facing PLANET application recording more than 2.40 crore downloads by March 31, 2026. The platform now serves over 19.2 lakh rural customers, has processed more than 12 crore service requests, facilitated loan sourcing of approximately Rs. 29,000 crore, and enabled collections exceeding Rs. 9,500 crore.
Segment-wise performance remained strong across all major retail businesses. Rural business finance recorded a 17 percent increase in book size to Rs. 30,805 crore, with annual disbursements rising 24 percent. Farmer finance grew 12 percent to Rs. 16,970 crore in book size, supported by steady growth in disbursements. Two-wheeler finance expanded 17 percent to Rs. 14,372 crore, while personal loans surged 70 percent to Rs. 14,666 crore, with disbursements doubling year-on-year. Housing loans and loan against property grew 20 percent to Rs. 30,009 crore, and SME finance increased 30 percent to Rs. 8,507 crore.
Gold finance emerged as a rapidly scaling vertical, reaching Rs. 2,845 crore in book size by the fourth quarter, with annual disbursements of Rs. 6,700 crore. The company also expanded its gold finance branch network by adding 200 branches, reaching a total of 330 branches since acquisition in June 2025.
Commenting on the results, the Managing Director and Chief Executive Officer stated that FY26 represented a strong year of execution despite external challenges. He highlighted the completion of the Lakshya 2026 strategic cycle and emphasized that the next phase, Lakshya 2031, will focus on disciplined growth, technological transformation, and sustained profitability, supported by a diversified retail franchise and strengthened digital and analytics capabilities.
The company reaffirmed its long-term ambition to evolve into a leading risk-first and technology-driven retail financier, supported by a strong customer base of over 2.8 crore customers, which continues to serve as a foundation for cross-selling, up-selling, and customer acquisition strategies.
About The Author
Comment List