Analysis: CSL Finance Limited

Growth thesis

CSL Finance is a non-banking financial company focused on wholesale and SME retail lending, with wholesale accounting for 69% of AUM in Q4FY26. Growth is driven by 15-25% AUM guidance for FY27, fueled by wholesale strength and SME retail recovery. The company plans to expand branches to 50-60 by FY26 and 65-70 by FY27, targeting Rs. 50 lakh monthly disbursement per branch. Credit costs are expected to stabilize at ~0.5%, while borrowing costs have fallen 60-70 bps, improving net interest margins. Over 2-3 years, wholesale will remain the core growth engine, with SME retail normalizing as operating conditions improve. Key execution risks include delayed SME recovery and branch productivity shortfalls.

Why is CSL Finance Limited stock rising?

• AUM growth guidance of 15%-25% for FY27
• Targeting 45% SME retail mix in total AUM by end of FY27
• Increasing branch network to 50-60 by end of FY26 and adding 10-15 branches in FY27
• Per branch disbursement target of Rs. 50 lakh per month
• Wholesale segment expected to remain strong and be a key growth driver

Research report

companyname: CSL Finance Limited ticker: CSLFINANCE sector: Financial Services - Non-Banking Financial Company (NBFC) CSL Finance Limited is a non-banking financial company (NBFC) established in 1992. It provides secured lending to small and medium enterprises (SMEs), non-salaried individuals, professionals, and real estate developers. As of March 2025, it operated 43 branches across 7 states with 460 employees. The company serves underserved and unbanked segments using a phygital model that co...

Catalysts

margin expansion, acquisition inorganic

Growth guidance

FY27 AUM growth guided at 15-25% driven by wholesale strength and SME retail recovery; SME AUM mix expected to reach 45%