Source: Kapitales Research

Highlights

• FY26 Cash PBT surged 117% to AU$30.8 million, while Cash NPAT increased 97%, reflecting accelerating operational leverage and margin expansion.
• Loan portfolio surpassed the AU$3 billion milestone two months ahead of target, supported by 32% growth in originations to AU$1.9 billion.
• Strong treasury execution and funding efficiency enabled AU$12.5 million corporate debt repayment alongside AU$20.6 million in corporate cash generation.

Plenti Group Limited (ASX: PLT) gained 3.680%, with its share price increasing AU$0.030 to AU$0.845 following the release of its FY26 results presentation, which highlighted strong profitability expansion, accelerating loan growth, and improving operational efficiency across all major lending verticals.

Profitability Expansion Reflects Strong Operating Leverage

Plenti delivered FY26 Cash Profit Before Tax (Cash PBT) of AU$30.8 million, representing a 117% increase year-on-year, while Cash NPAT rose 97% to AU$27.3 million. Revenue increased 20% to AU$312 million, supported by a 23% increase in average loan portfolio to AU$2.8 billion. Importantly, the company continued widening its profitability “jaws,” with margin growth materially outpacing operating cost growth as the scalability of its technology-led lending platform improved.

Loan Portfolio Crosses AU$3 Billion Milestone

The closing loan portfolio expanded 22% to AU$3.1 billion, achieving management’s strategic milestone two months ahead of schedule. Loan originations increased 32% to AU$1.87 billion, driven by strong momentum across automotive, renewable energy, and personal lending segments. Automotive originations rose 40% to AU$994 million, renewable lending increased 26% to AU$239 million, and personal lending originations climbed 23% to AU$636 million.

Technology Platform and AI Continue to Drive Efficiency

Management highlighted continued investment into automation, AI-enabled underwriting, and straight-through processing capabilities, which supported improved borrower conversion rates and operating leverage. Cost-to-net margin improved materially from 60.7% to 56.7%, reinforcing the efficiency benefits of the company’s proprietary digital lending infrastructure.

Funding and Credit Metrics Remain Strong

Plenti maintained strong credit quality, with realised loan impairment expense remaining low at 0.94%, while 90+ day arrears improved to 42 basis points. Net interest margin expanded to 5.5%, supported by highly competitive ABS funding execution and improved treasury outcomes. During FY26, the company completed three ABS transactions raising AU$1.4 billion at its lowest weighted pricing margins since 2021.

Cash Generation and Balance Sheet Strength Improve

Corporate operating cash flow increased materially, enabling AU$20.6 million of corporate cash generation during FY26. The company also repaid AU$12.5 million of corporate debt, reducing the drawn balance to AU$20 million. Net assets more than doubled from AU$42.5 million to AU$88.7 million, reflecting stronger profitability and balance sheet strengthening.

FY27 Outlook Signals Continued Growth Momentum

Looking ahead, management aims to exit FY27 with quarterly loan originations reaching AU$600 million while reducing cost-to-net margin below 55%. The company also continues advancing its Horizon 2 growth strategy, including expansion into commercial auto finance, additional strategic partnerships, and adjacent lending opportunities leveraging its technology and funding capabilities.

Note- All data presented is based on information available at the time of writing.

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