KOCHI: Lulu Financial Services (India) Private Ltd (LFSPL) continued to post losses in the last financial year, even as the non-bank lender expanded its loan book and strengthened its capital base while scaling up operations.
The company reported a loss of Rs2.02 crore in FY2025, lower than the Rs3.09 crore loss recorded in the previous year. It turned marginally profitable in the second quarter of the current financial year, suggesting early stabilisation as operating scale improves.
Lulu Financial Services India has been in an expansion phase, reflected in a sharp rise in assets under management, which stood at Rs105.89 crore as on September 30, 2025, up from Rs68.85 crore at the end of FY2025.
While the total disbursements during FY2025 stood at Rs220.13 crore, that during H1FY2026 were valued at Rs232.58 crore.
The growth has been driven largely by higher disbursements in its gold loan portfolio, which continues to dominate the loan book.
The increase in business volume has been accompanied by continued investments in branch expansion and manpower, which have weighed on profitability. As a result, earnings remain subdued despite improving operating momentum.
The company’s capital position strengthened during the year, supported by regular infusions from its promoter group. Net worth rose to Rs66.49 crore as of end-September 2025, from Rs41.42 crore six months earlier, providing a comfortable buffer to support growth plans.
NPAs contained
Asset quality has remained stable during the expansion phase. Gross non-performing assets (NPAs) were contained at 0.73 per cent, while net NPAs stood at 0.18 per cent as of September 2025, aided by the secured nature of the loan portfolio.
Operations are currently concentrated in Kerala and Tamil Nadu, with plans to enter Karnataka over the course of the current financial year, indicating a gradual geographical expansion strategy.
While the company continues to operate at a modest scale and remains loss-making at the annual level, the improvement in loss numbers, capital support from promoters and steady asset quality suggest that the focus remains on building scale rather than near-term profitability, according to the latest assessment of its lenders and creditors.
Going ahead, the pace at which Lulu Financial Services India is able to convert scale into sustained profitability, while maintaining asset quality and liquidity buffers, is expected to shape its operating trajectory.
