Record PAT growth masks medium-term margin headwinds

Delivered PAT ₹3,452.8 Cr, 59.9% YoY growth

9.04% NIM confirmed; but ₹500 Cr from past funds excess liquidity

₹3,13,798 Cr AUM vs ₹2,72,249 Cr = 15.26% YoY growth on track

Verified; beat prior 26-27% guidance

Gross Stage 3 4.64% vs 4.53% YoY (11 bps uptick); seasonal

18% AUM growth FY27 unchanged. But explicitly hedged with 'we'll wait for Q2 monsoon impact'. Prior guidance was 'subject to re-evaluation after Q1'.

Prior guidance 8.5% NIM held. Current 9.04% driven by ₹500 Cr past funds boost. Operational NIM ~8.5% consistent with guidance.

Q1 ₹6,184 Cr disbursement. Management now expects sequential momentum to accelerate (from prior 13-15% guidance). Will exceed overall 18% FY27 growth.

Q1 ₹5,153 Cr gold disbursement. Expect to double from 2.5% to 5% AUM over 3 years (new guidance vs prior quiet on gold).

Q1 CV disbursement ₹19,556 Cr in strong market (+14.1% OEM sales). Management guides 15-18% CV growth FY27 (prior range), fuel costs not passed through yet.

Gradually increasing new vehicle share as we reach out to earlier customers. Long-term margins 8.5% will be maintained; passing reduced cost of borrowing to customers.

Our earlier guidance of 18% will hold good unless after second quarter we revise it. Confident >15% growth at least for next quarter.

Fuel price has not gone up steeply; operators able to pass on costs. No vehicle idling seen; demand for vehicles remains good, reflected in 20% sales growth.

Medium-term is 2-3 years. New vehicle mix will go from 10% to 30% over period, diluting margins. New vehicle book already at 16%-17% of disbursement.

Gold absolutely not a concern. MSME we were cautious last year; now confident on quality. No new guidelines recent; any bucket change is normal.

Yes. Liability repayment target achieved. Will maintain 3 months liquidity buffer (₹17k-18k Cr). Balance will be used for growth and fund mobilization.

Yes, guidance will hold around 2% in near and medium term.

Yes, it will start growing now. We are confident and would like to expand the market. Sequential momentum will pick up.

Gold request is vs buying new gold, not against borrowing on existing jewelry. Large gold holding in India; opportunity to displace pawnbrokers. Will be a good volume for NBFCs.

Yes, now getting benefit of better rating, lowers cost. Incremental borrowing at 7.7%-7.8%, much lower than 8.56% liability cost.

Marginal increase only: 4.58% to 4.63%. Seasonal impact. No major change.

Overall borrowing program subdued; no securitization or assignment done this quarter. Will resume securitization when fund mobilization starts toward quarter end.

Yes, definitely yes.

Demand slowly coming back; Q1 OEM sales turned positive from prior negative growth. Expect demand to pick up from next quarter.

Challenge mostly on cars. We don't finance cars >7 years; trucks OK. OEMs say cars capable on E20. No clear picture yet, but no immediate challenge seen.

Have not borrowed from banks this quarter. When we start, it would be around 8%.

Not all branches; focusing on industrialized belts. South mostly covered now. West rolled out. Need to build in North and East. Hub-and-spoke model used for processing.

Q1 achieved 15.26% YoY. On track if rural demand holds. Reassessment after Q2 based on monsoon.

Q1 strong at +14.1% OEM sales, +19.5% disbursement. Market momentum sustained.

Q1 ₹6,184 Cr; management expects ₹7,000+ Cr Q3-Q4. Branch expansion in North/East ongoing.

Contingent on monsoon rainfall stabilizing and rural income holding. Explicit caveat: monsoon deficit 24% so far.

Supported by excess ₹39.6 Cr capital generating ₹500 Cr interest income. As capital deployed, benefit will subside.

As new vehicle mix rises from 16% to 30% (lower-yield segment), new lower cost of funds will be passed to customers.

~150 branch additions FY27 + manpower expansion absorbed within revenue growth. Cost leverage expected to continue.

Southwest monsoon 24% below normal; El Niño predicted. Agricultural output at risk. Rural income decline would impact CV, MSME, used vehicle demand.

Middle East conflict simmers. Fuel price volatility could worsen inflation and borrower margins. Industries dependent on petroleum products (plastic, chemicals) under stress.

New vehicle loans (16% of disbursement, targeting 30%) carry lower yields than used vehicle loans. As mix shift accelerates, NIM will compress despite lower cost of funds.

Gross Stage 3 assets up 18% YoY (absolute basis); buckets shifting in gold/MSME. Management claims seasonal, but bears monitoring.

Peers reporting funding tightness and cost increases. Shriram's rating upgrade currently offsetting (incremental cost 7.77%, bank cost ~8%). But if wider market tightens, benefit could erode.