First question is from the line of Deepesh J Sancheti from Maanya Finance. Please go ahead.

Hi, am I audible?

Okay. Now the branch network has expanded from 159 to 184 over the past year. How are the new branches performing versus the mature network? And what is the expected gestation period before they reach steady state productivity?

This is Kuldeep. The branches which we have opened last year, the number was 25 branches. Out of 25 branches, one is already in the breakeven stage. And if we talk about the maturity, this is linked with the breakeven only. So the branch expenses and the branch income, if we calculate both, it comes around 7 to 9 months to take the breakeven stage where the AUM of a branch at around INR1.5 crores to INR2 crores. We have actually categorized our branches into three categories, Tier 1, Tier 2, and Tier 3. So Tier 1 is having a broader resources where 5 to 6 ROs are there, the branch manager, DO, and other staff. Then the Tier 2, where the 5 to 6 ROs, then branch manager, then DO, and Tier 3 is having 2 to 5 ROs and branch manager and DO. So there are three categorization which are based on the population and the potential of that particular market. So depending on the category, it ranges from INR1.5 crores to INR2 crores when it achieves to the breakeven. Am I audible?

Yes sir. You are audible? Mr. Sancheti, can you hear us?

Hi, I can hear you. Hello?

Yes, yes, please proceed.

I am expecting that you are targeting at 30 % to 35% AUM growth alongside 3.5 % to 3.75% ROA and 13.5% to 14% ROE. Over the next 3 to 5 years, what needs to change for Laxmi India to transition from a regional NBFC into a larger pan -India MSME franchise? And what do you see as the biggest constraint in this ambition?

So we started with the Rajasthan way back in 1990s and then after when it comes to the NBFC in 2010. So after Rajasthan, we opened branches in Gujarat, then after in MP and Chhattisgarh. Then after last year, last to last year we opened UP and last year we opened Maharashtra. So we are continuously growing in terms of the branches as well as in terms of the new territory. So this year also we will probably moving into a new state as well as growing into the existing states. So by this grow up, every year we will grow up in new state, one or two new states. So definitely it will move to the pan-India presence.

But what is the AUM for the new branches for it to self-sustain or get into profitability?

The profitability I explained already. It takes around 7 to 9 months to come over the breakeven. So this is the tentative guidelines. Some of the branches even profitable in within 5 to 6 months and some takes 9 to 12 months also. But average breakeven achieves in 7 to 9 months.

No, but what is the loan given amount at which it will break even?

Okay. And is the management really happy with the kind of ROA we are doing? Because I think for a smaller NBFC like us, this is just too smaller number of ROA.

ROA is almost 3.45% right now, and I believe if you compare with the peer companies, so we are very stable with it. And we are improving it and as we scale, as we are scaling also, so little, it takes time to build up. But yes, if you are going to see the graph, it is on an improving side. So we are targeting 3.5% to 3.75%. So I believe by end of the year we will achieve that target.

Okay, all the best guys. Thank you.

Thank you. Next question is from the line of Vineet Sharma from Param Capital . Please go ahead.

Thank you for the opportunity sir. Just wanted to understand a little bit more on the growth strategy, both on the product and market side. So firstly, on the product side, would it continue to be the share of MSME increase going forward or would we be scaling the other products as well? And on the market side, we saw some expansion in UP, MP, Maharashtra happening in this quarter. So how would the overall geographical distribution evolve as the AUM scales up? If you could share some light on both these aspects. Thank you.

So this year we are planning to expand into 30 to 35 branches across the existing states. And in quarter 1 we have already added 10 branches. And as far as the product size, definitely the MSME would be the focused product and simultaneously we are looking for the other products also. So we continuously doing the research and analysis for the new product addition. So recently we have added a prime MSME product which ranges from INR25 lakhs to INR50 lakhs with some improved credit guidelines with the asking of the documents are more into this segment. And continuously we are also searching for new products and going forward in future we probably will add some new products also.

Understood.

So with adding to this, our main focus will be on a secured SME MSME lending. So to customers, because since 2000 we have seen that secure business has given a best result in this any type of market. So we have a same strategy that our main core product will be and will be the same secured SME side. An d with increasing the network across Bharat. So we have a presence in six states. So now still there are many states and union territory which is untouched. So we have a plan to open those territory also and to open more branches over there in Tier 2, Tier 3 cities of the state and giving loans to such self -employed customer over there and so that they can also be a part of a growth of Bharat.

Today out of 194 branches, so the main mother st ate is Rajasthan. So percentage of Rajasthan will be a little bit higher, but slowly gradually the other states like Madhya Pradesh, Gujarat, their percentage is also increasing. So I believe in coming three to four years, Rajasthan will be major, yes of c ourse. But yes, other states where we have a good presence, we have open branches, so they will be also contributing handsome percentage in total AUM. So if you want to see, we are very conscious on a diversification also. So we are having that presence that presence in mind that we want to diversify our portfolio state wise also. So we are working on it and coming years we can see the changes in a percent holding of the states.

Understood sir. Thank you so much.

Thank you. Next question is from the line of Mikail Batliwalla from Lakshya Capital. Please go ahead.

Hi, am I audible?

Yes, please proceed.

Yeah. So credit costs have gone up almost 1% in this quarter. What are the reasons behind this? Is this stress coming from newer geographies, newer vintages?

So credit cost has basically increased in a wheels portfolio. So we have a wheels portfolio, so little bit stress has come from there. Otherwise, the main product what we have is SME, secured SME and all. So there is stress we can't see the stress. But over to Gopal if you can add some more points, please.

Thank you, sir. Main reason to increase in credit cost in quarter one related to we have increased 10% extra provisioning on up money transaction, for which we have already guided in March '26 as well as in December '25. Till date we have offered 70% of provisioning in our P&L, okay. This is a case based study and this study consider current stage of case, future expected collection due to enforcement of activity. And if we receive the collection rights by the help of the court that time historical collection experience of the organization, most likely settlement. So till date management beli eve 70% of ECL provisioning is more appropriate for quarter 1. Subsequently on each reporting date, we will observe further improvement of the case and act accordingly. So main reason up money. Despite of this, core business of company is remain stronger. Thank you.

Okay, thank you.

Thank you. Next question is from the line of Dhaval Pandya from Ariza India. Please go ahead.

Yeah, good afternoon sir and thanks for the opportunity and congratulations on good set of numbers. So a few of my questions have already been answered. I have only one question left. So from the expanding branches or the expanding states, which state or which geography showed the highest number of guidance or revenue growth?

So our main 90 -odd branches we have in Rajasthan being mother state. So yes of course the major portfolio consists of Rajasthan because of the major portfolio the revenue income is also generated from Rajasthan majorly. But other states as I told before th at other states are also improving, they are also giving good support in disbursement. So they will also be having a good percentage in future. They will be also contributing good numbers in PAT in the coming years.

Okay, that's it from my side. Thank you very much. Moderator Thank you. Next question is from the line of Shivam Rathore from MB Investments . Please go ahead.

Hello, am I audible? Yeah, so network increasing to INR483 crores while CRAR moderated from 26% to 25% at the current growth trajectory, how much balance sheet capacity do you have before incremental equity capital becomes necessary?

So basically our leverage net leverage stands for 2.43% to it and we have a handsome we have a handsome liquidity also with us in a quarter end that is INR255 crores. So to further increase in AUM of course this is a capital-oriented business, so we have to raise the capital. So we have a plan to raise capital in next financial year we will start next financial year mid we will start the process and all and we have a plan to raise further capital around INR300 odd crores. And by that time I believe our leverage we can easily extend our leverage to 3.5% to 4% and so that we can have a good ROE also by that time. And so by that time I believe we will be required. And still Piyush, if you want to add anything to it, please. Yeah, over to Piyush.

So basically the growth trajectory, Deepak sir has already addressed that. The need of the capital is always depending upon the once we levered our balance sheet, the capital that we are having. So trajectory we will be thinking of once the leverage is reaches to the level what we have had before going for an IPO that is around four, four and a half in between of that. The time will be reaching in we are seeing that one year, one and a half year down the line from right now. We will be starting the exercises for the fund raising so that the return on equity will be a factor of debt to equity and the ROTA will be translated into the maximize return on equity that we will be getting so far. Once we reach that stage , definitely we will be having a n additionally capital of INR300 crores, INR350 crores that we are planning so.

My next question is tha t what is your growth guidance for FY27 and FY28 and what are the margin guidance?

So, basically, we are we are growing on a CAGR basis that is around 30% to 35%. We will be maintaining this pace of growth going forward as well. The margin d epends upon the cost of borrowing and other factors as well, the yield that we are giving to our borrowers. So in order to address the businesses we need to squeeze our margin going forward basis but we need to maintain in the pace of the profitability that we are seeing so.

Once the cost of borrowing is inclined -- declining phase we will definitely giving a certain pass on to the borrowers and definitely we will be maintaining this pace of margin that we are having in order to address that business going forward as well.

Yes sir, yes.

Thank you. Next question is from the line of Harkirat Singh from B.D. Electrocom . Please go ahead.

Hello?

Yes, you are audible. Please proceed.

Yeah, my first question is regarding the El Nino impact and the global uncertainties. Are we facing any issues in our portfolio? What do we expect it to impact in our Q2?

So basically the global war and all this is not much affected to us because our customer base is -- belongs to Tier 2, Tier 3 cities of a state where they don't have any like transactions from between other inter country and transactions are there. So they don't have. But yeah, the crude price increase specially impact everyone and to our customers also. So that is little bit we can see the incrementing cost to our borrowers and otherwise if you're going to see other things are not basically any impact on this. And coming quarters also we see that their collection efficiency will be w ell maintained and we in fact we will try to improve it or much better we to do it in the coming quarters.

Okay. And like considering the global uncertainties, so are we aggressively expanding our AUM or we are just constant regarding our AUMs? Kuldeep Singh So yes, of course, as I told in my speech also. So our main motive is not to increase the balance sheet size. Main motive is to recover your also after disbursement. So we are taking we have a risk base assessment and all. So wherever the stress we feel in a business area or any anywhere so we take calls, we stop funding or reduce the LTV and we keep on discussing on this risk factors across points. So on a risk factor basis, we are taking calls on a numbers, on a achievement, on a disbursement and on a customer base and all.

Okay. And just a final question. What are net slippages in this quarter?

Slippage? INR3.26 crores. .

INR3.26 crores?

Yeah.

Okay, thank you, thank you very much.

Hi, good afternoon team. Thank you for giving me the opportunity to ask questions. Firstly, many congratulations on great set of numbers and apologies actually I joined a bit late. So my questions might be a bit repetitive. So my first question is that cost of borrowings declined by about 67 bps if I'm not wrong to roughly 10.66% and spreads expanded to roughly 11%. So how much further headroom do you see for funding cost to decline? And what is a sustainable NIM range for the business if you could please let me know.

Yeah, hi Seema, this is Piyush, I am heading the treasury vertical. So the cost of borrowing is as of now is a you can see since last two, three years we are always on the declining phase and the best part is that the rating has been upgraded from A minus to A and we have translated it into slightly reduction in the cost of borrowing this quarter as well. But seeing the last 12 months of incremental cost of borrowing stood to 10.48% around as of now. Blendedly it's 10.66%. I mean to say that another 20 bps to 25 bps that I am seeing so will be further reduced in this year going forward basis. Depending upon if in case there is a global scenarios is intact and there is no RBI hike is there so we will be further reducing our cost of borrowing by 0.20 bps to 0.25 bps. That's one. Secondly translating to the business, I mean to say that giving the relaxation to the borrowers depends upon how the credit and asset qualities are there going forward basis. Once everything is intact it depending upon, I can say the management call and the board call as well, we will be we will be passing on to the borrowers as well.

Okay, okay, and sir my second question is that operating expenses grew by roughly 34% Y-o-Y with employee cost up 36% versus 51% growth in total income. So as the branch network matures, how much operating leverage do you guys see ahead? And where could the cost to income ratio settle?

So basically Seema, since we are in the growing phase actually. So in a growing phase always there is a opex will be slightly higher in comparison to the larger piece of NBFCs. But you can see since last 12 or 18 months back we are reducing our overall I can say that cost in terms as well. But I can say since we are stepping into the new geographies, so opex in respect of opening the branches will be slightly I can say hype in certain areas. So eventually subsequent benefits will be follow on in the subsequent months only. That becomes part and parcel of the business. So cost to income ratio is below 50% as of now, but I am seeing so the healthy cost of income ratio that we address or we internally believe that it will be around 44% or 42% in between of that. We are trying harder but still it becomes more challengeable during the growing phase as well.

Okay, okay, and my last question is that disbursem ents grew roughly 40% Y -o-Y to INR232 crores ahead of 28% AUM growth. So actually how should we read this gap basically? And does the current disbursement run rate give you confidence that AUM growth can accelerate from here?

Yes, that current run rate of disbursement giving us the confidence to the AUM growth also. As far as the AUM growth and the disbursements are concerned, AUM growth depends on the disbursement as well as the repayment and the closures of the loans. So that is how you can read the difference of that.

Okay, okay, thank you, thank you so much sir. That's all from my side.

Thank you. Ladies and gentlemen, that was the last question for the day. I now hand the conference over to the management for the closing comments.

So, thank you everyone for your questions and for your continue d interest in Laxmi India Finance. To conclude, quarter 1 '27 -- FY27 has been a strong quarter for us with healthy growth across the businesses, improving in margin, strong profitability, and continuous strengthening of our capital and funding profile. At the same time, we recognize that sustainable growth in lending requires constant attention to asset quality. We will therefore remain disciplined in our approach to underwriting, collection, branch expansion and liability management. Our objectives remains very clear to build Laxmi India Finance into a scalable, well capitalized and sustainable lending franchisee serving Ind ia underserved MSME and retail borrowers. We thank all our investors, lenders, partners, customers and employees for their continuous confidence and support. We looking forward to interact with you again next quarter. Thank you.

Thank you very m uch, sir. On behalf of Go India Advisors, that concludes this conference. Thank you all for joining us and you may now disconnect your lines.