Auxilo Revenue Hits ₹676 Cr, Profit Reaches ₹117 Cr in FY26

Education-focused non-banking financial company (NBFC) Auxilo Finserve continued to expand in FY26, with revenue from operations rising to about ₹676 crore and net profit reaching nearly ₹117 crore.

The numbers show a business growing rapidly on the back of a larger loan book, but with profitability increasing much more slowly than revenue. Auxilo's FY26 annual report shows total income of ₹689.7 crore, profit before tax of ₹156.8 crore, and profit after tax of ₹116.9 crore.

The performance is significant because Auxilo operates in a specialized segment of the Indian lending market: financing students, educational institutions and related education expenses.

Revenue Growth Reaches 27%

Auxilo's revenue from operations increased from ₹528.1 crore in FY25 to ₹675.8 crore in FY26, representing growth of roughly 28%.

Total income increased from ₹543.6 crore to ₹689.7 crore, or about 27%. The company said the increase was primarily driven by higher interest income as its assets under management expanded.

Financial Metric FY25-FY26

Revenue from operations ₹528.1 Cr ₹675.8 Cr~28% Change

Total income ₹543.6 Cr ₹689.7 Cr~27% Change

Profit before tax ₹150.0 Cr ₹156.8 Cr~4.5% Change

Net profit ₹111.9 Cr ₹116.9 Cr~4% Change

AUM ₹4,339 Cr ₹5,051 Cr~16% Change

Total assets ₹4,866.5 Cr ₹5,499.1 Cr~13% Change

The figures indicate that Auxilo is expanding its lending base considerably, although the growth is not translating into a similar increase in earnings.

Interest Income Remains the Core Engine

For an education-focused NBFC, interest income is naturally the most important revenue component.

Auxilo generated approximately ₹610.1 crore in interest income during FY26, compared with ₹477.5 crore in FY25.

That represents an increase of around 28%, broadly in line with the company's overall revenue growth. Fees and commission income, meanwhile, declined from ₹37.4 crore to ₹32.4 crore.

The numbers suggest that the company's expansion remains primarily driven by the growth of its lending portfolio rather than by non-interest revenue.

Auxilo provides financing across education-related requirements, including student loans and financing for educational institutions. Its product portfolio covers domestic education, overseas education and institutional financing.

AUM Crosses ₹5,000 Crore

One of the more important numbers in the FY26 results is Auxilo's assets under management.

AUM increased from approximately ₹4,339 crore in FY25 to ₹5,051 crore in FY26, representing growth of about 16%.

Total assets increased from ₹4,866.5 crore to approximately ₹5,499.1 crore.

This provides a useful explanation for the company's revenue expansion.

For a lending company, a larger loan book generally creates the foundation for higher interest income. But expanding AUM also requires funding, risk management, collections infrastructure and additional capital.

That makes the next phase of Auxilo's growth dependent not just on originating more loans, but on maintaining the economics of those loans.

Profit Growth Is Much Slower

While revenue from operations increased by nearly 28%, net profit increased from ₹111.9 crore to ₹116.9 crore, a rise of only about 4%.

Profit before tax increased from ₹150 crore to ₹156.8 crore.

This creates the central financial story in Auxilo's FY26 results:

Revenue is scaling considerably faster than profit.

That does not necessarily mean the business is weakening. For a growing NBFC, expenses can rise as the company invests in people, technology, compliance, risk systems and loan origination.

But it does mean that future performance will increasingly depend on whether Auxilo can generate operating leverage as its loan book gets larger.

Finance Costs Rise Sharply

The biggest expense pressure came from financing.

Auxilo's finance costs increased from approximately ₹282.2 crore in FY25 to ₹384.7 crore in FY26, an increase of about 36%.

Employee benefit expenses also increased from ₹56.1 crore to approximately ₹82.5 crore. Operating expenses rose as the company invested in operational capabilities, compliance, governance, risk management and expansion across its education-finance businesses.

This is typical of an NBFC's growth equation.

The company has to raise money to lend more money.

As the loan book grows, interest income increases, but the cost of borrowing can also rise. The difference between the yield earned on loans and the cost of funds therefore becomes a critical determinant of profitability.

Net Income Reached ₹305 Crore

Auxilo's FY26 annual report shows net income of approximately ₹305 crore, compared with ₹261.4 crore in FY25.

At the same time, operating expenses increased to approximately ₹135.5 crore from ₹98.5 crore, while impairment on financial instruments remained broadly stable at around ₹12.7 crore.

The relatively controlled impairment expense is relevant for a lender because credit losses can materially affect profitability when a loan portfolio expands.

Auxilo's FY26 disclosures also show that the company continued to operate with a largely secured lending structure, with the majority of its B2B institutional loan exposure backed by property.

Education Finance Is Becoming a Larger Market

Auxilo's growth comes as demand for education finance continues to evolve. Students increasingly pursue expensive domestic and international higher education, while educational institutions require financing for infrastructure, expansion, technology, and working capital.

Students increasingly pursue expensive domestic and international higher education, while educational institutions require financing for infrastructure, expansion, technology and working capital.

This creates opportunities for specialized lenders that can develop products around the education ecosystem rather than compete only in conventional retail lending.

Auxilo's business spans both B2C student financing and B2B education-institution financing, giving it exposure to multiple parts of the education ecosystem.

Its website also lists domestic and overseas education loans alongside infrastructure development, expansion and modernization, working-capital and technology-equipment financing for institutions.

Funding Becomes Important as AUM Expands

The expansion of Auxilo's loan book also requires continued access to funding.

During FY26, the company raised debt through securities and other borrowings. Its cash-flow statement shows ₹450 crore of proceeds from debt securities and approximately ₹1,144.9 crore of proceeds from other borrowings, before repayments and other financing movements.

For an NBFC, access to diversified funding sources can become increasingly important as AUM moves higher.

The equation is straightforward:

More capital → larger lending capacity → higher AUM → higher interest income.

But the reverse is also important:

Higher borrowing costs → narrower spreads → pressure on profitability.

That balance will be important for Auxilo as it moves beyond the ₹5,000-crore AUM level.

Profitability Needs to Catch Up With Growth

Auxilo's FY26 numbers illustrate a broader challenge for specialized lenders.

Growing the loan book is only one part of the equation. The more important question is whether the company can generate higher profit from every additional rupee of assets.

The company's return on average total assets declined from 2.7% in FY25 to 2.3% in FY26, according to the annual report.

That decline is worth watching.

It suggests that while the company is getting larger, the profitability generated relative to its asset base has moderated.

If Auxilo can improve operating efficiency, control funding costs and maintain credit quality, the larger AUM could eventually translate into stronger earnings growth.

What to Watch in FY27

The next stage of Auxilo's growth will depend on several metrics rather than revenue alone.

AUM growth: Can the company continue expanding beyond ₹5,000 crore?

Cost of funds: Can borrowing costs remain manageable as the balance sheet grows?

Credit quality: Can impairment and delinquency remain controlled?

Operating efficiency: Can expense growth slow relative to revenue?

Return on assets: Can profitability improve as the loan book matures?

Capital availability: Can Auxilo maintain sufficient funding to support expansion?

These metrics will provide a clearer picture of the quality of growth than revenue alone.

The Business Lesson

Auxilo's FY26 performance illustrates the difference between growth in lending volume and growth in lending economics.

The company added roughly ₹148 crore of revenue from operations in one year and expanded AUM by more than ₹700 crore. Yet net profit increased by only about ₹5 crore.

That gap is largely explained by higher finance costs and investments in employees and operating infrastructure.

For Auxilo, the next phase may therefore be less about proving that it can grow and more about demonstrating that its growing education-finance platform can produce stronger operating leverage.

The company's ability to combine AUM growth, controlled credit costs, funding efficiency and improving returns on assets could determine how effectively its ₹5,000-crore-plus loan platform translates into sustainable profitability.