Corporate Announcements – Laxmi India Finance

Introduction
At Laxmi India Finance, we believe that transparency, timely communication, and accountability are the cornerstones of our relationship with stakeholders. In keeping with this commitment, we are pleased to share key updates on our corporate journey, recent leadership changes, financial performance, strategic initiatives, and our vision for the future.

Leadership Changes
We are delighted to announce the appointment of Mr. Rajesh Sharma as our new Chief Executive Officer, effective 1st September 2025. Mr. Sharma brings over 20 years of experience in the banking and NBFC industry, having led transformational projects in credit risk, operational efficiency, and digital lending. His leadership philosophy focuses on customer-centric growth, innovation, and sustainable practices.

We also welcome Ms. Kavita Desai as our new Chief Financial Officer. With a strong background in corporate finance, risk management, and strategic planning, Ms. Desai will oversee our financial governance and ensure continued fiscal discipline.

We take this opportunity to thank our outgoing CEO, Ms. Priya Mehta, for her exceptional service over the past seven years. Under her guidance, Laxmi India Finance expanded its branch network, introduced multiple digital lending products, and strengthened its market presence.

Financial Results
For Q2 FY 2025-26, we are pleased to report a 15% increase in revenue and a 12% rise in net profit compared to the previous quarter. Our net profit margin has improved by 2%, driven by cost optimization and higher loan recovery rates. Gross Non-Performing Assets (NPA) have reduced to 2.8%, reflecting our robust credit appraisal processes.

Our asset under management (AUM) crossed the ₹8,000 crore mark, demonstrating our strong market penetration in both retail and SME lending segments. The growth was supported by our vehicle loan, MSME loan, and personal loan products, which together contributed over 60% of new disbursements during the quarter.

Strategic Initiatives

1. Digital Transformation – We have successfully rolled out our AI-powered loan approval system, reducing processing time from 48 hours to just 6 hours.

2. Branch Expansion – Five new branches have been opened across Rajasthan, Gujarat, and Madhya Pradesh, expanding our physical footprint to over 120 locations.

3. Customer Engagement – A dedicated “Customer First” helpline has been launched to handle queries, feedback, and grievance redressal more efficiently.

4. Green Financing – We have introduced a new Electric Vehicle (EV) loan scheme with preferential interest rates to promote sustainable transportation.

Corporate Social Responsibility (CSR)
Our CSR initiatives this quarter focused on financial literacy and women entrepreneurship. Over 1,500 women participated in training programs designed to promote small business ownership. Additionally, we partnered with local NGOs to sponsor education for 500 underprivileged children in rural Rajasthan.

We have also taken significant steps towards environmental sustainability by adopting paperless documentation in 70% of our loan processing operations and installing solar energy systems at select branches.

Employee Recognition
Our employees are the driving force behind our success. This quarter, we recognized top performers through the “Star Achievers” award program. The awardees demonstrated excellence in sales, operations, and customer service, and were rewarded with performance bonuses, professional training vouchers, and public recognition within the company.

Market Outlook
The Indian NBFC sector is poised for steady growth in the coming year, supported by strong demand in retail lending, rising rural income, and government initiatives to improve financial inclusion. We expect our loan book to grow at a CAGR of 18% over the next three years.

We will continue to focus on expanding our product portfolio, investing in technology, and enhancing our risk management framework to safeguard profitability while offering competitive lending solutions.

Looking Ahead
Our priorities for the upcoming quarters include:

• Launching a co-lending partnership with leading banks to diversify our funding base.

• Introducing a mobile app upgrade with enhanced features for loan tracking, EMI payments, and financial planning tools.

• Expanding our insurance and wealth management services to offer a comprehensive suite of financial solutions to our customers.

• Increasing our focus on rural and semi-urban markets through tailored microfinance products.

Closing Remarks
We extend our heartfelt thanks to our employees, investors, partners, and customers for their continued trust and support. Together, we are building a stronger, more resilient, and customer-focused Laxmi India Finance. The future holds immense opportunities, and with our renewed leadership, digital capabilities, and strong governance, we are confident in achieving sustainable and inclusive growth.