Regency Fincorp targets ₹500-550 cr AUM by FY27 as loan book surges
Secured MSME book rose 44% sequentially to ₹230 cr. Digital lending app 'Cash My Salary' hits ₹23 cr. Full-year PAT guided at ₹25-30 cr.
— 7 earlier stories on Regency Fincorp Ltd. →What's new
- MSME loan book grew 44% QoQ to ₹230 crore in Q1.
- Digital lending platform built ₹23 crore portfolio in its first quarter.
- Management guided for AUM of ₹500-550 crore, revenue above ₹75 crore, PAT ₹25-30 crore for FY27.
- Plan to cut funding costs from 13.3% to ~12% via additional bank lines and NCDs.
Why this matters
Regency's formal full-year guidance gives investors a clear benchmark. At a market cap of ₹331 crore, the guided PAT of ₹25-30 crore looks reasonable given the strong loan book growth. But the company has a high debt/equity of 0.86 and a low ROE of 4.1%, so execution on funding cost and asset quality is critical.
What we're watching
- Whether funding costs actually fall to 12% by year-end.
- Disbursement growth in Q2 to validate the MSME momentum.
- Progress on the prepaid payment instrument license application.
- State-wise exposure caps (max 20%) to avoid concentration risk.
The full read
Regency Fincorp's Q1 conference call transcript, released today, puts formal numbers behind the transition story. The secured MSME book jumped 44% sequentially to ₹230 crore, while the new digital app 'Cash My Salary' added ₹23 crore in its first quarter. Full-year guidance: AUM of ₹500–550 crore, revenue above ₹75 crore, and PAT of ₹25–30 crore. Management also plans to cut blended funding costs from 13.3% to 12% using fresh bank lines and NCDs. The transcript is a backward-looking document and adds little beyond the Q1 profit jumped 122.6% YoY to ₹7.03 crore and the ₹25 crore NCD raise covered earlier. But the guidance gives investors a yardstick. The real test is the next two quarters.
Questions answered
- How did the secured MSME loan book perform in Q1?
- It grew 44% sequentially to ₹230 crore, driven by strong demand in the secured lending segment.
- What is the digital lending platform 'Cash My Salary'?
- It is a new digital lending app launched in Q1, building a ₹23 crore portfolio in its first quarter.
- What is the full-year guidance for FY27?
- Management guided for AUM of ₹500-550 crore, revenue above ₹75 crore, and PAT of ₹25-30 crore.
- How does management plan to reduce funding costs?
- By adding more bank lines and issuing NCDs to bring blended costs from 13.3% down toward 12% by year-end.
- What are the key risks to achieving the guidance?
- Funding cost reduction depends on securing lower-cost bank lines; the digital lending book is unsecured and new, so asset quality needs monitoring.
Regency Fincorp Ltd.
Latest quarter · Jun 2026
Leverage & growth
Story so far
All notes on REGENCY →- 27 Jul 2026 · 1:45 PM IST Regency Fincorp targets ₹500-550 cr AUM by FY27 as loan book surges
- 8d ago Regency Fincorp Q1 profit doubles, digital loan book takes shape
- 8d ago Regency Fincorp Q1 profit doubles to ₹7.03 cr
- 8d ago Regency Fincorp raises ₹25 cr via NCDs at 13% coupon
- 10d ago Regency Fincorp upgraded to IVR BBB, outlook cut to stable