India · Delayed Price · Currency is INR Five-Star Business Finance Earnings Call Transcripts
Fiscal Year 2027
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Quarterly disbursements hit a record INR 1,496 crores, with AUM at INR 13,722 crores and robust asset quality. Credit costs and NPAs are trending down, while cost of funds and operating expenses are well managed. Management is confident in achieving 20% loan growth and expects further improvement in profitability.
Fiscal Year 2026
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Q4 FY26 saw strong recovery in collections and disbursements, with PAT at INR 269 crore and AUM up 11% year-over-year. Management guides for 20% AUM growth and 1.7%-1.75% credit cost in FY27, with stable margins and continued branch expansion.
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Collection efficiency and asset quality improved in Q3, with PAT rising year-over-year and robust liquidity maintained. Management remains cautious, focusing on long-term credit culture and expects growth acceleration after further stabilization.
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Q2 saw stabilization and early recovery signs, with PAT up 7% sequentially and improved collection efficiency. Management reaffirmed FY 2026 growth and credit cost guidance, launched a new housing loan product, and expects stronger performance in H2.
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Q1 FY26 saw muted growth and higher credit costs due to over-leveraging in small-ticket loans, especially in Karnataka and Andhra Pradesh. The company is shifting focus to higher ticket, better quality customers, expects stabilization by Q2 end, and maintains 25% growth guidance for FY26.
Fiscal Year 2025
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FY25 saw robust AUM and PAT growth despite regulatory and regional disruptions, with asset quality remaining strong and a dividend payout initiated. FY26 guidance targets 25% AUM growth, stable credit costs, and measured expansion, while yield reductions are not anticipated unless funding costs drop further.
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AUM grew 25.4% year-over-year to INR 11,178 crores, with net profit up 26% and strong asset quality maintained despite a strategic slowdown in disbursements. Guidance for 25% growth and stable credit costs continues, with robust liquidity and expanding branch network.
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PAT grew 34% YoY to INR 268 crore, with AUM up 32% YoY to INR 10,927 crore. Disbursements slowed as a strategic move, and lending rates on new loans will drop by 200 bps from November. Asset quality remains strong, with only 0.4% of loans showing stress.
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AUM crossed INR 10,000 crore with 36% YoY growth and record PAT of INR 252 crore. Digital collections surged, asset quality remained stable, and guidance for 30%+ AUM growth and a 50-75 bps rate cut for new loans was reiterated.