Analysts/Institutional Investor Meet/Con. Call Updates

CIN: L74899DL1992PLC051462 November 06, 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, C-1, Block-G, Bandra Kurla Corporate Relationship Department Phiroze, Complex, Bandra (E), Mumbai - 400051 Jeejeebhoy Towers, Dalal Street, Mumbai-400001 NSE Symbol: CSLFINANCE BSE Scrip Code: 530067 Dear Sir / Ma’am, Sub: Transcript of the Conference Call held on November 03, 2026 With reference to our letter dated October 24, 2026, intimating you about the conference call for Analysts and Investors held on November 03, 2026, please find attached the transcript of the aforesaid conference call. The above information shall be made available on the website of the Company viz. www.cslfinance.in We request you to kindly take the above information on your records. Thanking You Yours Faithfully For CSL Finance Limited Preeti Gupta (Company Secretary & Compliance Officer) Reg. off.: Office No. 301-302, 8/19, 3rd Floor, W.E.A, Pusa Lane, Karol Bagh, New Delhi – 110005, Corp off.: 714-717, 7th Floor, Tower – B, World Trade Tower, Sector – 16, Noida,201301, Uttar Pradesh, Ph.: +91 120 4290650/52/53/54/55, Email: info@cslfinance.in, Web.: www.cslfinance.in CSL Finance Limited Q2 & H1 FY27 Earnings Conference Call November 03, 2025 Moderator: Ladies and gentlemen, good day and welcome to the CSL Finance Limited Q2 and H1 FY27 Earnings Conference Call hosted by TIL Advisors Pvt. Ltd. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sayam Pokharna from TIL Advisors Pvt. Ltd. Thank you and over to you, Sir. Sayam Pokharna: Thank you, Rutuja. Good evening, everyone and thank you for joining us today for the Q2 and H1FY27 Earnings Conference Call of CSL Finance Limited. The investor presentation for the Quarter 2 has already been uploaded on the Stock Exchange and on the company website. In case you wish to be added to our mailing list, please feel free to reach out to us. To take us through today's results, we have with us from the management team, Mr. Rohit Gupta – Managing Director, Mr. Naresh Chandra Varshney – Chief Financial Officer, Mr. Chandan Kumar – Head Strategy and Business, Ms. Rachita Gupta, Whole Time Director, Mr. Atul Gupta, President, Finance and Treasury, and Mr. Chirag Gupta, Credit Head, Wholesale Segment. We will begin with a brief overview of the quarter from Ms. Rachita Gupta followed by a Q&A session. Please note that any forward-looking statement made during this call should be considered in conjunction with the risks and uncertainties that we face. These risk factors have been outlined in our annual report. With that, I would now like to hand over the call to Ms. Gupta. Over to you. Rachita Gupta: Thank you, Sayam. Good evening, everyone. Thank you for joining us today. I am pleased to share the highlights of CSL Finance's performance for the second quarter and the first half of FY27. The quarter has seen a continuation of the trends we outlined in our previous calls. The Wholesale Segment has continued to perform strongly and remains the primary driver of our AUM growth at present, supported by healthy disbursements, robust asset quality, and good availability of funds for future growth. Page 1 of 8 SME Retail Segment has remained in a consolidation phase driven by a mix of internal and external factors. On the external side, the broader SME lending space remains low. The factors we discussed in our earlier calls, namely, over-leveraged borrower profiles, stagnant income growth across the MSME ecosystem, and higher competitive intensity in the smaller ticket segments, have not yet eased materially. On the internal side, we have used this period to tighten our credit policy and checks, rationalize non-performing branches, relocate others, and strengthen the team with the focus on improving productivity in our existing branches rather than on network expansion. SME retail disbursements remained measured during the quarter, although they were higher sequentially compared to Q1 FY27. As the consolidation measure takes hold and the operating environment gradually improves, we expect better performance on the SME retail disbursement front in the second half of the year. With that overview, let's come to our financial performance. Let me begin with our AUM performance. Our AUM as of September 30, 2026, stood at Rs 1,627 crore, which was up by 16% year-on-year from Rs 1,397 crore, and up 88% sequentially from Rs 1,505 crore at the end of Q1 FY27. On-book AUM stood at Rs 1,578 crore, which was up by 21% year-on-year and 7% sequentially. Growth during the quarter continued to be led by the wholesale vertical. The AUM mix now stands at Rs 2,773 between SME retail and wholesale, compared with Rs 1,3466 a year ago and Rs 1,370 at the end of Q1 FY27. Total disbursement for the quarter stood at Rs 385 crore, which was up 31% year-on-year and 20% sequentially. This is the highest quarterly disbursement in the company's history. For the first half of FY27, disbursement stood at Rs 706 crore, which is up by 18% over first half of FY26. Collections stood at Rs 298 crore in Q2, which is up 16% year-on-year and 5% sequentially, taking first half of FY27 collections to Rs 580 crore. Collection efficiency improved to 99% during the quarter from the 98% maintained over the preceding four quarters. Apart from on-book AUM growth, we continue to work on strengthening our fee income through joint lending structures with select industry partners in the wholesale segment. These structures continue to support growth during the quarter and our off-book AUM stood at Rs 50 crore as of September 30, 2026, which is up from Rs 33 crore at the end of Q1 FY27. We see joint lending as an important lever for the wholesale segment. It allows us to participate in larger transactions while retaining control over the project and its cash flows, deepens our relationships with larger NBSCs and banks, and adds a fee-based income stream alongside our interest income, thus improving our ROEs. We expect activity to build up on this front further over the coming quarters. Coming to our asset quality, gross NPS stood at 1.13% as of September 30, 2026, compared with 0.95% in Q1 Page 2 of 8 FY27 and 0.51% in Q2 FY26. Net NPS stood at 0.71% compared with 0.60% in Q1 FY27 and 0.39% in Q2 FY26. Gross State Free Asset stood at Rs 17.84 crore against Rs 13.92 crore at the end of Q1 FY27. Total ECL provision stood at Rs 19.67 crore or 1.25% of the loan book with the provision coverage ratio at 110.29%. Write-offs during the quarter were Rs 2.05 crore, lower than Rs 2.87 crore in Q1 FY27 while recovery stood at Rs 1.44 crore. I would also like to provide some context on recoveries. Major of our book is SARFAESI compliance and we expect recoveries to improve in the future as case resolutions progress through the legal process. Now moving to our P&L performance. Net Interest Income for Q2 FY27 stood at Rs 49.6 crore, which is up 21% year-on-year and 10% sequentially, driven by a higher average AUM during the quarter. Total Income stood at Rs 77.4 crore, also up 21% year-on-year and 10% sequentially. Profit before tax stood at Rs 35 crore, which is up 21% year-on-year and 18% sequentially. Profit after tax stood at Rs 25 crore, which is up 2% year-on-year and 13% sequentially. The gap between PBT and PAT growth on a year-on-year basis is on account of a lower effective tax rate in the base quarter of Q2 FY26. Hence, PBT is a better comparison in this quarter. The annualized ROE improved to 6.30% from 5.86% in Q1 FY27 and annualized ROE improved to 14.86% from 13.82%. For the first half of FY27, Total Income stood at Rs 147.7 crore, which is up 20% year-on [Showing first 8,000 characters — download PDF for full document]