Strong earnings, cautious outlook amid household leverage stress

Delivered ₹130.1 Cr, YoY +29.0%, QoQ +6.0% confirmed

Spread 9.48%, up 39 bps QoQ, up 81 bps YoY verified

AUM ₹11,922 Cr +6% QoQ, +27% YoY; within guidance

MSME ₹9,271 Cr (78%), Gold ₹2,631 Cr (22%)

Opex 4.29%, down 30 bps YoY; guidance reaffirmed

Login-to-disbursal fell 8 ppts; CIBIL >700 but failing filters

Spread 9.48%, +81 bps YoY vs 9% guidance; driven by 90 bps CoF reduction + disciplined pricing (walking away from business <9% margins).

0+ DPD +70 bps; management flagged as Q1 seasonal (repeats annually); rollbacks tracking within control; GNPA flat 2.66% YoY.

Login-to-disbursal 34% vs 42% prior (8 ppt drop); sub-₹10L households tightening; RBI FSR confirms 60% lending now consumption-focused.

Down 30 bps YoY (4.29%) vs 25 bps FY27 guidance; branch increments and new staff costs absorbed; targeting 4% or below by year-end.

Watchful but not alarmed yet; conversion 34% from 42%; CIBIL >700 but failing filters due to high loan amounts sought. DSR at 14% globally high.

No, focus on getting better at what we do. Learned over 8 years, will better it over next 8.

Two factors: increments rolled out + full cost of 20-25 branches opened in H2 FY26. Cost-to-AUM will improve as staff becomes productive.

Gold yields outperformed this quarter; stable range 17.5-17.75%; don't extrapolate this quarter's 25-30 bps gold spike.

10-15 branches, slowing after 52 opened in last year. Waiting for productivity metrics from new branches before next wave.

Yes, 1.4-1.5% for next two quarters at minimum; range-bound.

Q1 seasonal pattern (same as last year Q1); rollbacks tracking well; should stabilize this quarter then pullback. No red alerts from slippage.

Don't break out segment-wise. Incremental yield same 17.5-17.75% range. Gold yields higher than MSME.

Marginal reduction possible, but range-bound. Don't extrapolate this quarter's 25-30 bps increase.

Both. Co-origination reset normalizing, numbers back Q2. Pass-through tighter: 21k logins/qtr, 7% drop = ₹140 Cr lost to tighter filters.

No, plenty of white space MSME/Gold and geographies. Growth numbers needed not extraordinarily high. No pressing need to diversify.

Management reaffirmed guidance on all fronts. 27% YoY growth demonstrates capacity. No macro shocks disclosed to derail near-term.

Core margin guidance for FY27. Disciplined pricing protecting this floor. Further expansion likely if cost of funds stabilizes.

Margin expansion without deterioration. Absolute borrowing growth + NIM protection achieved.

Deliberate slowdown after 52 branches in prior year. Waiting for productivity metrics before next acceleration wave.

Household DSR touching 14%, one of highest globally. Sub-₹10L segment showing stress signals: login-to-disbursal conversion collapsed from 42% to 34%; CIBIL scores >700 but still failing filters (high loan amounts sought). RBI FSR notes 60% of new lending now consumption vs asset creation.

0+ DPD rose 70 bps during quarter; GNPA flat 2.66% YoY but up 5 bps QoQ. Management frames as seasonal (Q1 pattern repeats annually) with good rollback momentum. However, if rollbacks deteriorate or stress spreads upmarket, slippage risk is real.

Co-origination mix reset from 20% to 10% due to new RBI eligibility norms (effective April 1, 2026). Collateral restrictions on MSME <₹20L ticket size. Loan amount reductions in gold segment post-regulation. Impacts disbursement funnel and co-origination revenue stream.

Fed rate hikes may force RBI to tighten sooner than expected. Oil price volatility and geopolitical uncertainties add unpredictability. Deposit rates rising as bank lending outpaces deposits. Management flagged upward bias to funding costs despite recent 90 bps CoF reduction.

Login-to-disbursal conversion fell from 42% to 34% (8 ppts drop in one quarter). Household incomes not materially changed but inflation eroding disposable income. RBI FSR confirms 60% of new lending now flowing to consumption vs asset creation (vs historical 50/50). Sub-₹10L households particularly stressed.