Solid growth masked by credit cost creep and macro caution

₹13,300 Cr → ₹16,100 Cr consolidated; 21% growth within range

₹86 Cr → ₹110 Cr; delivered result ₹110.2 Cr matches

March 2026: 2.57% GNPA, 1.7% NNPA; essentially flat

Now at 1.6% of AUM; prior guidance was 1.25-1.5%, range has widened

Achieved only 23% growth (₹794 Cr → ₹976 Cr); below target

9.25% achieved (55 bps down); sub-9% now called 'far-fetched', target 9.25-9.3%

Prior 1.25-1.5%, now 1.25-1.75%; actual 1.6% reflects higher on-book AUM (8.25% vs 5.5%) and provisioning buffer (₹6-7 Cr Stage 1/2 increase)

Previously desired <9% (pre-COVID level), now accepted 9.25-9.3% as target; macro/RBI uncertainty cited; credit rating upgrade only path

Guidance 30-35%, achieved 23% YoY; expansion to South (Tamil Nadu, Karnataka) starting now, results expected Q3-Q4 only

Tightened credit screens due to West Asia energy crisis; eligible demand decreased; waiting 1-2 quarters before aggressive growth in segment

Current 66-67%, targeting 70-72% in 1-1.5 years (on track per prior strategy, no acceleration)

Robust demand but tightened credit screen on energy crisis; collection fluctuations normal; no undue risk; waiting 1-2 quarters before accelerating volumes

Q1 usually muted for two-wheeler (seasonality Q3-Q4 strong); monitoring geographies; normal seasonal pattern

Target spread 7-7.5%, NIM 8-8.5%; structuring assets to maintain; yields sustained

Macro dependent; efforts to stabilize/reduce but expect 9.2-9.3% range going forward

₹5-7 Cr provision impact; Stage 1-2 provisioning 0.65% → 0.7%; on-book grown 8.25% vs 5.5% AUM

Maintain 2.75-3.25% ROA; branches sweat by 2027-28 or earlier; efficiency metric is ROA, not cost-to-income alone

Range-bound 1.25-1.75%; higher on-book (8.25%), provisioning buffer (₹6-7 Cr), product mix; within tolerance for ROAs generated

Regular prudent write-offs ongoing; floods temporary, operations resume quickly; no foreseen stress

Tech automizing origination, underwriting, operations, collections via bots, auto-allocation, partnerships; hopeful on further improvements; difficult to quantify recurring run-rate

Sub-9% aspiration but 'far-fetched' in 1-2 quarters; first target maintain 9.25-9.3%; credit rating upgrade being pursued but timing unclear

Tightened energy-dependent business screens; eligible demand decreased but manageable; borrowers resilient; no massive defaults yet; monitoring ongoing

March ₹29 Cr, June ₹19 Cr; offset by higher ECL provisioning (Stage 1-2 increase ₹6.5-7 Cr)

Still watchful on cautious segments; overall stable; tightened on US tariff issue still in place; MEL/SME stable; balancing demand and policy parameters

From 66-67% to 70-72% within 18 months

Nishant Jain (CRO) → Director-Operations; Darshil (Head Credit SME) → Chief Risk Officer; internal changes to strengthen middle management and succession

₹10 Cr OCPS redeemed; subsidiary strong capital (37% CAR), not requiring capital, so refunded to parent

Very high possibility; working quite optimistic but can't predict with certainty

Buffer in standard asset (0.7%), higher on-book; 1.25-1.75% range dependent on product mix; ROA 2.75-3.25% aspiration

Expanding to South (Tamil Nadu, Karnataka) starting this quarter; efficiency improvements; TAT rationalization; results expected Q3-Q4

Average credit cost 0.5%; average yield 14%

Off-book dynamic; took better-priced liabilities; normal course; strategy remains 20-25% off-book; no concern

Achieved 21% in Q1; management 'very hopeful' of higher end; macro headwinds (West Asia, monsoon, CV caution) offset by core MSME resilience

Delivered Q1 performance supports this; ROA metric primary focus given diversified product yields

Credit costs increased to 1.6% of AUM from prior 1.2-1.3%; guidance range widened from 1.25-1.5% to 1.25-1.75%. Driven by higher on-book asset mix (8.25% growth vs 5.5% AUM growth) and Stage 1-2 provisioning buffer.

Used CV eligible demand decreased due to West Asia energy crisis impact on fuel prices and supply. Eligible demand softened; collections showing normal fluctuations. Management waiting 1-2 quarters before aggressive volume resumption.

Housing finance AUM growth at 23% lags 30-35% internal aspiration and prior guidance. Subsidiary remains small (₹976 Cr AUM), requiring significant acceleration to be value-accretive to parent.

Sub-9% borrowing cost aspiration (pre-COVID level) now deemed 'far-fetched' in 1-2 quarters. Management resetting expectations to 9.25-9.3% stable level. Macro uncertainty (RBI stance, inflation) cited as brake.

West Asia energy crisis ongoing; monsoon deficiency followed by excess flooding in parts of India (Gujarat); both affecting borrower demand and collections. Temporary but recurring seasonal risks.