Regency Fincorp FY26 Net Profit Soars 170% to ₹13.4 Cr; AUM Grows 45%

Regency Fincorp Limited announced its audited consolidated financial results for the quarter and financial year ended March 31, 2026, reporting a significant surge in profitability and asset growth. The board meeting, held on May 6, 2026, approved the standalone and consolidated results, which highlighted a robust performance driven by business expansion and operational efficiency.

Subsequently, the company intimated that these audited financial results were published in newspapers, specifically “Desh Sevak- Chandigarh Edition” and “Financial Express- Chandigarh Edition”, on May 8, 2026, pursuant to Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

FY26 Financial Performance The company reported a 170% year-on-year increase in Profit After Tax (PAT) for FY26, reaching ₹13.4 crore compared to ₹5.0 crore in the previous year. Total income for the year rose by 85% to ₹40.1 crore, while Net Interest Income (NII) grew by 113% to ₹27.6 crore.

Pre-provisioning operating profit saw a substantial jump of 185% to ₹19.6 crore. For the fourth quarter of FY26, PAT increased by 37% to ₹3.5 crore, while total income stood at ₹12.0 crore, up 43% from the same period last year. The following table summarises key performance metrics across Q4 and full-year FY26: Particulars (INR crores): Q4 FY26 Q4 FY25 Y-o-Y FY26 FY25 Y-o-Y Total Income: 12.0 8.4 43% 40.1 21.7 85% Finance Cost & Commission Expenses: 4.5 2.1 112% 12.4 8.7 43% Net Interest Income & Fee Income: 7.5 6.3 20% 27.6 12.9 113% Pre-Provisioning Operating Profit: 5.1 3.7 39% 19.6 6.9 185% Profit After Tax: 3.5 2.6 37% 13.4 5.0 170% Asset Quality and Growth Metrics Regency Fincorp's Assets Under Management (AUM) expanded by 45% to ₹261.2 crore in FY26 from ₹180.2 crore in FY25.

Disbursements for the year grew by 43% to ₹142.1 crore. The Net Interest Margin (NIM) improved by 285 basis points to 10.3%, while Return on Assets (ROA) and Return on Equity (ROE) stood at 12.3% and 16.7%, respectively. Asset quality showed a Gross NPA (GNPA) of 0.99% and Net NPA (NNPA) of 0.74% as of March 31, 2026.

Particulars (INR crores): FY26 FY25 Y-o-Y AUM: 261.2 180.2 45% Disbursement: 142.1 98.7 43% NIM: 10.3% 7.4% 285 bps ROA: 12.3% 10.6% 174 bps ROE: 16.7% 7.8% 892 bps GNPA: 0.99% 0.42% 57 bps NNPA: 0.74% 0.31% 43 bps Strategic Fundraising and Capital Augmentation The board approved the issuance of call letters to holders of convertible share warrants allotted on December 28, 2024, for the balance 75% of the issue price.

The company raised ₹25 crore through the issuance of Compulsorily Convertible Debentures (CCDs) in April-May 2026 to expand its digital lending and secured MSME book. The company further strengthened its balance sheet through multiple capital initiatives, with NCD issuances of approximately ₹25 crore in January 2026, approximately ₹30 crore in March 2026, and an additional ₹30 crore NCD issuance in the first week of May 2026.

Equity expansion through warrant conversion increased paid-up capital to approximately ₹80 crore. The board also approved raising up to ₹400 crore through NCDs to support future growth. Capital Initiative: Details CCD Issuance: ₹25 crore (April-May 2026) NCD Issuance 1: ~₹25 crore (January 2026) NCD Issuance 2: ~₹30 crore (March 2026) NCD Issuance 3: ₹30 crore (First week of May 2026) Paid-up Capital (post warrant conversion): ~₹80 crore Board-approved NCD fundraise pipeline: Up to ₹400 crore Operational Highlights and MD Commentary The company is focusing on digital initiatives with its app 'CashMySalary' and plans to launch a digital wallet called 'RegPay', having received a No Objection Certificate (NOC) from the RBI for Prepaid Payment Instruments (PPI).

The statutory auditors, M/s K N S G & Co LLP, issued an unmodified opinion on the financial results. The company reported zero defaults across all borrowing categories, with total financial indebtedness standing at ₹61.85 crore. Commenting on the performance, Gaurav Kumar, Managing Director, Regency Fincorp Limited, said: "Our performance in FY26 reflects the strength of our business fundamentals and our continued commitment to building a robust and customer-focused financial services platform.

Despite a dynamic operating environment, we have maintained growth momentum while ensuring portfolio quality and operational discipline. The Company recently raised INR 25 crore through the issuance of CCDs. The proceeds will be utilised towards strengthening our digital lending capabilities and expanding our secured MSME portfolio.