Veteran investor Mukul Agrawal increased his holdings in microcap NBFC Laxmi India Finance during the June quarter of FY27, raising his stake by 0.75% to 4.58% in the quarter ended June 30. As reported by The Financial Express, this represents his first significant increase since initially investing in the company right after its listing. The portfolio changes come as quarterly disclosures continue, with more updates on his investments likely in the coming weeks.
Laxmi India Finance delivered robust financial growth during FY26, with Net Interest Income rising 38.7% year-on-year to ₹161.8 crore from ₹116.69 crore in FY25. Profit after tax increased 38.3% to ₹49.7 crore from ₹35.9 crore a year ago. The company's return on assets improved to 3.08% from 2.98% in FY25, while return on equity came in at 13.7% for the period. Management is targeting to improve medium-term ROA to 3.5-3.75% and ROE to 13.5-14% as fresh capital from the IPO is deployed.
The NBFC's assets under management stood at ₹1,626.3 crore at the end of FY26, reflecting 27.4% YoY growth. MSME loans have been the primary driving force, standing at ₹1,298.68 crore out of total AUM, rising at a CAGR of 33.29% since FY23. Vehicle loans contributed ₹145.82 crore, while construction loans and loan against property added ₹85.61 crore to the loan book. During FY26, 37% of borrowers were first-time credit users, reflecting the demand and supply gap in Tier-II and Tier-III markets where formal credit penetration is relatively low.
Laxmi India Finance operates across central and western India, including Rajasthan, Gujarat, Maharashtra, Madhya Pradesh, Uttar Pradesh, and Chhattisgarh, with over 176 branches serving more than 42,800 customers as of FY26 end. The stock is currently trading at a price-earnings ratio of 11.8x, significantly lower than the industry median of 22x. On the Price to Book Value metric, the NBFC trades at 1.26x compared to the industry median of 1.82x. The company maintains tie-ups with more than 50 lenders and has built over 110 digital tools for customer acquisition and loan servicing.
