Summary
Moneyboxx Finance Limited - Q3 FY2026 Earnings Call Summary Friday, February 13, 2026 4:00 PM
Event Participants
Executives 3 Deepak Aggarwal (Co-Founder), Mayur Modi (Co-Founder), Viral Sheth (Financial Controller)
Analysts 4 Ankit (Stellar Investor Relations), Deepak Karwa (Individual Investor), Nish Shah (Stellar AMC), Vansh Saini (Street Smart Investments)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| AUM | ₹878 crores | +5% YoY; excluding ARC transaction, underlying growth was 17%. |
| Total Income | ₹54.7 crores | +5.6% YoY, driven by steady execution in core franchise. |
| Profit After Tax | ₹0.35 crores | +77.6% YoY, improving due to disciplined provisioning and steady collections. |
| Net Interest Margin | 14% | -260 bps YoY from 16.6%, reflecting strategic shift to lower-yield secured lending. |
| GNPA (Own Book) | 1.43% | -417 bps YoY from 5.6% as asset quality improved materially. |
| NNPA (Own Book) | 0.72% | -216 bps YoY from 2.88% due to higher resolution trends. |
| Credit Cost | 2.07% | -263 bps YoY from 4.7% as slippages moderated. |
| Cost of Funds | 12.7% | -90 bps from marginal cost of 11.8%; 11 leading banks now in lender mix. |
| CRAR | 26.68% | Remains comfortably above regulatory requirements. |
Geographic & Segment Commentary
- Secured Lending: This segment now constitutes 60% of AUM (vs 38% YoY) and 67% of 9M FY26 disbursements. Management is targeting 80% secured AUM by March 2027 to reduce volatility and enhance lifetime customer value.
- Rural/Semi-Urban MSME: Focus remains on the upper tier of micro-enterprises with higher ticket sizes (>₹3 lakhs) and better bureau scores (>650). Strategic partnerships with global foundations (Gates, Shell) are providing first and second-loss guarantees for specific green and unsecured assets.
Company-Specific & Strategic Commentary
- Strategic Pivot: Shifting toward a predominantly secured, higher-rated borrower base to improve portfolio durability. This transition has led to temporary yield moderation but significant improvements in asset quality (Deepak Aggarwal).
- Technological Innovation: Proprietary “Cattle AI” application is used for livestock identification and underwriting. It has reduced processing timelines by 20-30% and lowered fraud/duplication risks (Deepak Aggarwal).
- Efficiency & Operating Leverage: Opex is expected to trend below 10% of average AUM over the next 24 months as branches reach maturity (~₹7 crores AUM per branch) (Deepak Aggarwal).
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| AUM | >₹1,500 crores (FY27) | Expected growth driven by branch productivity and ₹43.3Cr equity infusion. |
| Secured AUM Mix | ~80% (March 2027) | Strategic shift to stabilize asset quality and lower credit costs. |
| Operating Expenses | <10% of Avg AUM (FY28) | Driven by AUM scaling across the national network and higher productivity. |
| Credit Cost | <2% (FY27) | Based on improved collection efficiency and higher resolution in bucket 1 & 2. |
Risks & Constraints
| Risk | Context |
|---|---|
| Yield Moderation | The shift to secured lending (60% of book) naturally reduces yields from 30% to the 18-24% range. Management expects lower credit costs and lower borrowing costs to offset this margin pressure. |
| Asset Quality Volatility | While GNPA has improved to 1.43%, the MFI/MSME sector has faced prolonged stress. Continued improvement depends on legal recoveries (Section 138 filings) and maintaining 99%+ current bucket efficiency. |
| Concentration Risk | Transitioning towards larger ticket sizes (>₹3 lakhs) may increase concentration compared to traditional micro-lending. Management mitigates this through tighter underwriting and focus on house-owning customers. |
Q&A Highlights
Asset Quality & Collection
- Question: What is the current status of collection efficiency and slippages? (Nish Shah)
- Answer: Current bucket efficiency reached 99% in January, up from 98.15% in September. Resolution in Buckets 1 and 2 is at an all-time high of 60%. (Deepak Aggarwal)
- Question: How are you managing legal recoveries for NPAs? (Vansh Saini)
- Answer: We are aggressive with Section 138 filings; we expect 5,000 accounts to reach non-bailable warrant stages next year. Since customers are residential owners, legal pressure typically yields recovery. (Deepak Aggarwal)
Strategic Shift & Yields
- Question: How will the shift to secured lending impact NIMs? (Nish Shah)
- Answer: While yields on secured loans are lower (18-21% vs 30% for unsecured), the cost of borrowing is also declining. We expect to maintain yields around 24% over the medium term. (Deepak Aggarwal)
Funding & Capital
- Question: What is the plan for the ₹43.3 crore equity raise? (Vansh Saini)
- Answer: The funds will primarily support book building. Post-infusion, net worth will exceed ₹300 crores, allowing us to comfortably scale AUM to ₹1,500 crores. (Deepak Aggarwal)
- Question: What is the current borrowing mix? (Raj Doshi)
- Answer: The mix is roughly 30% Banks, 30% NBFCs, and 40% Capital Markets (NCDs). Marginal cost of funding has dropped to 11.8%. (Deepak Aggarwal)
Key Takeaway
Moneyboxx Finance Limited reported a steady Q3 FY2026, highlighted by a significant strategic shift toward secured lending, which now accounts for 60% of its ₹878 crore AUM. While this transition caused NIMs to moderate to 14%, it resulted in a material improvement in asset quality, with GNPA dropping to 1.43% from 5.6% a year ago. The company successfully reduced its marginal cost of funds to 11.8% and is leveraging “Cattle AI” to enhance underwriting for its rural MSME base. Management is focused on consolidating its 100+ branch network to drive operating leverage, targeting an opex ratio below 10% of AUM. With a pending ₹43.3 crore equity infusion and improving collection efficiencies (99%+ in January), the company remains on track to reach an AUM of ₹1,500 crores in FY2027 while aiming for a long-term ROA of 4-5%.
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