India · Delayed Price · Currency is INR Five-Star Business Finance Earnings Call Transcripts
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.