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 with 7% sequential PAT growth, improved collection efficiency, and robust ROA/ROE. Management reaffirmed FY 2026 guidance, expects stronger H2, and launched a new housing loan product to drive future growth.
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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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AUM grew 23% YoY to INR 11,877 crore, with PAT up 28% to INR 1,073 crore for FY25. Asset quality remained strong despite regulatory disruptions, and FY26 guidance targets 25% AUM growth and 12%-15% earnings growth, with a continued focus on quality and profitability.
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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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AUM grew 32% year-on-year to INR 10,927 crore, with PAT up 34% to INR 268 crore. Growth guidance was reduced to 25% for FY25, and lending rates on new disbursements will drop by 200 bps from November. Asset quality and collection efficiency remain strong.
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AUM surpassed INR 10,000 crore with 36% YoY growth, and PAT hit a record INR 252 crore, up 37% YoY. Collection efficiency dipped slightly due to external factors but remains robust, and digital payment adoption reached 65%. Guidance for 30%+ AUM growth and a 50-75 bps rate cut for new loans is maintained.