Physicswallah loan portfolio sale: The company said in a BSE filing dated October 4, 2026, that its wholly owned subsidiary FinZ Finance Private Limited has signed an agreement to sell, transfer and assign loans aggregating to Rs 95.79 crore to Auxilo Finserve Private Limited. The portfolio constitutes a substantial part of FinZ Finance's total loan book.

FinZ Finance entered into the deed of assignment on October 3, 2026. The filing lists consideration for the transaction at Rs 95.79 crore. The transition relating to the loans and borrowers covered by the deed is expected to conclude within the next 60 days.

Since lending is FinZ Finance's principal business activity, Physicswallah said the proposed transaction represents a substantial reduction in its lending operations and is expected to result in their partial or piecemeal closure. The filing describes an agreed transaction with a borrower and loan transition still to follow.

Lending strategy shifts towards third-party NBFCs

The agreement follows Physicswallah's June 4, 2026, disclosure on restructuring the lending strategy of its NBFC segment through FinZ Finance. The company said the portfolio closure forms part of a broader strategic realignment aimed at focusing on core business operations and optimising capital allocation.

Under the proposed approach:

  • Lending activities would be facilitated through established and regulated third-party NBFCs.
  • The arrangement is intended to improve operational efficiency and reduce associated balance sheet and credit risks.

The buyer, Auxilo Finserve Private Limited, is an RBI-registered non-banking financial company primarily focused on the education sector. Physicswallah said the arrangement is intended to allow the company to remain focused on its core business.

FinZ Finance's disclosed financial contribution

According to the financial details as of March 31, 2026, included in the filing, FinZ Finance reported total income of Rs 1.35 crore, representing 0.04% of the listed entity's total income. Its net worth stood at Rs 60.30 crore, or 1.18%.

Other income was Rs 1.35 crore, representing 0.54%. Revenue from operations was disclosed as Rs 0.00 crore and 0.00%, with a footnote explaining that operating revenue was negligible because FinZ Finance commenced business operations in February 2026.