Credit Momentum Builds: CSL Finance Reports Strong AUM Growth and Robust Disbursements in Q1 FY26

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CSL Finance Ltd has kicked off FY2025–26 on a strong note, reporting a year-on-year increase in Assets Under Management (AUM) to Rs 13.05 billion. The company also disclosed healthy loan disbursements and collections for the June quarter, reflecting continued traction in its core lending segments and prudent risk management.

Here’s a detailed breakdown of the financial performance and operational highlights.

Key Performance Metrics for Q1 FY26

- AUM rose to Rs 13.05 billion, marking a significant year-on-year growth driven by expansion in the SME and wholesale lending portfolios
- Total loan disbursements during the April–June 2025 quarter stood at Rs 3.56 billion, indicating strong credit demand across key geographies
- Collections for the quarter came in at Rs 2.45 billion, underscoring the company’s focus on maintaining asset quality and recovery efficiency

Business Strategy and Segmental Insights

- CSL Finance continues to focus on secured lending to small and medium enterprises (SMEs), which form the backbone of its loan book
- The company has been gradually diversifying its borrower base while maintaining a conservative credit underwriting framework
- Its wholesale lending vertical remains selective, with a focus on high-yield, low-risk opportunities in real estate-backed and structured finance deals

Operational Efficiency and Risk Management

- The company has invested in digital loan origination and analytics tools to enhance turnaround times and improve borrower profiling
- Collection efficiency remains above industry average, supported by a decentralized field team and automated follow-up systems
- CSL’s asset quality metrics remain stable, with no material deterioration reported in the June quarter

Outlook and Growth Plans

- Management has reiterated its guidance for double-digit AUM growth in FY26, supported by geographic expansion and deeper penetration in Tier 2 and Tier 3 cities
- The company is also exploring co-lending partnerships with banks and NBFCs to scale its SME lending operations
- With a healthy capital adequacy ratio and a strong liquidity buffer, CSL Finance is well-positioned to capitalize on India’s credit cycle recovery

As CSL Finance sustains its growth trajectory, the Q1 FY26 performance reflects a balanced approach to expansion—anchored in risk discipline, operational agility, and a sharp focus on underserved credit segments.

Sources: CSL Finance Investor Updates, Moneycontrol, Trendlyne, June 2025