Satin Creditcare Q2 FY27: consolidated PAT up 231% YoY to ₹176 Cr as credit costs normalize

Satin Creditcare's consolidated PAT came in at ₹175.9 Cr for Q2 FY27, up 231% YoY from ₹53.2 Cr and 43% QoQ from ₹122.6 Cr, on revenue from operations of ₹925.8 Cr (+17.5% YoY, +21.5% QoQ). EPS rose to ₹15.98 from ₹4.83 a year ago. Standalone PAT of ₹171.6 Cr (EPS ₹15.59) tracks almost identically with consolidated — the four subsidiaries (Satin Housing Finance, Satin Finserv, Satin Technologies, Satin Growth Alternatives) plus step-down QTrino Labs together added only ₹6.66 Cr of PAT for the quarter, confirming the core NBFC-MFI lending book, not the newer bets, drove the print. We have no verified Street consensus for this specific quarter's PAT to grade the print against (vsStreet: unknown); broader analyst commentary around the FY27 opening had pointed to 15-20% full-year PAT growth, a bar this quarter's YoY print already runs well ahead of on a standalone basis. The swing is a margin story, not a volume story: net profit margin expanded to roughly 18.9% of total income from 6.7% a year ago and 16.0% last quarter. Consolidated impairment on financial instruments fell to ₹89.6 Cr from ₹143.3 Cr a year earlier (-37.5% YoY) and from ₹106.1 Cr last quarter, even as the book grew — this is the primary driver of the earnings jump, consistent with management's prior framing of FY27 as a credit-cost normalization year. That improvement came despite finance costs rising to ₹339.2 Cr (consolidated) from ₹270.1 Cr YoY as the balance sheet was funded with more debt (five NCD tranches totaling ₹43,500 lakh were placed during the quarter, per the filing's notes). Against management's own guidance from the Q1 FY27 call — FY27 consolidated AUM growth of 20-25% to ₹18,200-18,900 Cr by March 2027, standalone credit cost of 3-3.5%, and standalone ROA of 3.5-4% — this quarter's business update (Oct 7, 2026) put consolidated AUM at ₹16,600 Cr, up 31% YoY, already running ahead of the guided growth range with two quarters left in the year. The sharp fall in impairment is directionally consistent with credit costs normalizing toward the guided band, though the filing does not disclose a standalone credit-cost or ROA ratio to confirm the exact figure. Management had also flagged that it would review guidance at the half-year mark based on the monsoon — this result is that checkpoint, and the tone implied by the numbers (AUM ahead of plan, credit costs falling) reads as on-track-to-ahead rather than a reason to cut targets. No company press release was available in our records for this result to cross-check against management's own characterization of the quarter. Asset quality on the standalone book remains comfortable, with GNPA at 1.94%, NNPA at 0.17% and provision coverage of 91.46%, alongside CRAR of 27.89% and a liquidity coverage ratio of 131.91% — none of which signal stress accompanying the growth. Consolidated leverage (debt-equity 3.81x) runs ahead of standalone (2.92x) as the subsidiaries layer on additional debt-funded growth, including ₹110 Cr of rights-issue capital into Satin Finserv and ₹12 Cr into Satin Growth Alternatives during the quarter. Going into Q3, the trajectory to watch is whether impairment keeps falling at this pace as the book scales past ₹16,600 Cr, since that — not AUM growth, which is already ahead of plan — is what will determine whether the margin expansion holds.