Record PAT +102% YoY; aggressive guidance upgrade on AI collections & branch scale

Delivered PAT ₹353.4 Cr with 102.0% YoY growth; revenue ₹1,576.5 Cr (+57.1% YoY)

Strong AUM growth trajectory underpins 102% PAT expansion; growth rates consistent with revenue growth profile

Implies prior gold AUM ~9,089 Cr; growth rate mathematically sound and driven by branch expansion + customer demand

Blended yields improved to 17%, spreads to 7.8%; cost-to-income fell to 44.2% (from 49.4%); supports >75% NII growth

102% PAT growth on modest equity/asset base supports 610 bps ROE and 90 bps ROA expansion; trajectory aligned with new guidance (19-21% ROE, 4.2-4.7% ROA)

Prior ₹47,000 Cr→new ₹50,000 Cr (+6.4%). Q1 AUM ₹40,112 Cr requires 24.5% growth; achievable at 10% QoQ with H2 acceleration.

Prior ₹57,000 Cr→new ₹65,000 Cr (+14.0%). Reflects confidence in 30%+ CAGR from gold loan growth 111% YoY, branch expansion 400/year, and market tailwinds.

Prior 16-18%→new 19-21%. Q1 achieved 19.1%, so new guidance represents continuation + modest uplift from margin stability and cost leverage.

Prior 4-4.5%→new 4.2-4.7%. Q1 at 4.1%; new guidance upper end represents uplift from continued cost efficiency and profitability growth.

Prior stated ~50%→new 55% medium-term. Q1 at 48%. Reflects strategic shift to higher-yielding gold loans (18.6% yield) vs MSME.

Gold ₹373 Cr, housing ₹15 Cr, MSME ₹10 Cr, construction ₹13 Cr. Driven by 4% QoQ gold price decline, not origination quality. Low-risk portfolio.

Yes, weak monsoon may increase gold loans from marginal farmers. But normal 25% growth from existing branches plus new branch additions will drive growth regardless.

Q2 150 branches, Q3 250 branches, total 400 by Dec 2026 (revised up from 350). Plan on track.

Smaller ticket strategy driving yields. Current 18.5%, expect 50-75 bps further improvement from ticket size mix and disciplined sourcing.

Limited reduction from current levels FY27. Diversification strategy (bonds, CP, bank borrowings, GMTN for offshore) underway. CoF expected stable rest of FY27.

Medium-term target 55% of overall AUM mix.

Capital allocated to gold loan branch profitability. Maintained measured MSME growth (24% YoY) targeting 50-60% blended AUM growth.

FY27 on course for ₹50,000 Cr. Quarterly additions ₹3,000-₹3,500 Cr; H2 quarters stronger than H1.

All business heads stable (gold since inception, housing 10 yrs, construction 9 yrs, MSME with replacement). Risk heads stable (CRO 3 yrs, credit 7-8 yrs). CFO/CCO/Audit moved to HFC for RBI compliance. 10-20% churn normal. No CEO position vacant.

By FY28, confident to deliver on consistent basis despite 400-500 branch openings annually.

Distribution via employee/dealer network following strict unit economics. No cash burn. Every transaction must be profitable. Used car pilot coming to improve margins.

Spreads will stabilize around 7.8-8.0% when gold loan mix crosses 50-53%. That region is sustainable.

Next 12-18 months cost-to-income will stabilize at 44-45%. New branch costs offset by volumes from mature branches. Not expecting further compression.

Gold loan short-term product. Automated margin calls at 10-15-20% decline thresholds. Auction notices at 85% LTV breach. Portfolio resilient in 6 months volatility. Asset quality protected.

Gold-to-loan ratio at disbursement ~71%. 29% margin cushion from risk perspective. LTV trigger at 85% for auctions.

One account slipped; 70% provision taken. 6-9 month recovery cycle typical; recovered ₹30 Cr from old NPAs Q1. Normal continuous cycle.

100% collateralized secured portfolio. Collection efficiency strong; 525+ collection team; tech/data science invested. Current GNPA 1.1%, net NPA 0.6% (top quartile). Industry benchmark 2% GNPA, 1% net NPA.

Q1 AUM ₹40,112 Cr; requires 24.5% growth. At 10% QoQ conservatively, achievable. H2 quarters historically stronger.

30% growth from ₹50k FY27 implies 30%+ CAGR. Gold loan 111% YoY and branch 400/year expansion provide concrete drivers.

Implied from ₹50k→₹65k growth. Co-lending slowdown (4% QoQ) is headwind; gold loan growth and branch productivity are tailwinds.

Q1 spread 7.8% at 48% gold. Smaller ticket strategy driving yield +50-75 bps further. Well-supported by product mix transition.

Q1 achieved 44.2%. New branch costs offset by maturing branch productivity. Realistic no-further-compression guidance.

Q1 NII +79% unlikely to sustain; margin expansion peak. 30-40% NII growth sustainable on AUM leverage.

Revised up from 350. Total network 1,433 Q1→~1,833 by FY27-end. Expense headwind short-term but volume lever long-term.

70M API transactions/month, 6.7L Q1 call analysis, multi-lingual voice platform. Strategic tech moat being built.

Gold loans 48% of AUM (₹19.2k Cr). Q1 4% QoQ price decline caused 373 Cr Stage 2 increase (ratio 2.8%→3.8%). Further 15% crash forces 85% LTV auctions.

Construction GNPA jumped 0.3%→0.7% Q1 (133% QoQ). One account slipped; 70% provision upfront taken. Exposure across 291 active projects.

Co-lending QoQ growth slowed to 4% from higher historical rates due to RBI CLM1 migration requirement. Only 6 of 11 partners migrated; 5 pending. Income down 8% YoY.

Cost-to-income at 44.2% (sharp improvement from 49.4% Q4). MD guided 44-45% is floor next 12-18 months. No further compression despite AUM growth.

Analyst pressed on 'multiple CEO churns' and leadership transitions. MD acknowledged 10-20% normal churn. Recent moves: CFO, CCO, Head Audit transferred to HFC for regulatory compliance.