Strong growth, asset quality wobble amid seasonal headwinds

Delivered PAT ₹260.9 Cr, confirmed 19% YoY growth, ROE 20.4% matches

Revenue +15.4% YoY shows margin expansion despite rate cuts, OpEx claim aligns with profitability growth

Q1 delivered 0.6%, within range despite GNPA rising 18bps QoQ to 1.7%

Delivered AUM growth 21% YoY; Q1 disbursement +36% driven by low base (stopped <₹7L loans last year), July +25% more moderate

30+ DPD rose 66bps QoQ (6.21% Q4 → 6.87% Q1), GNPA +18bps; July recovery claimed but deterioration real, not just timing

30+ DPD rose 66bps (6.21% → 6.87%), GNPA +18bps (1.52% → 1.7%) vs Q4 FY26, attributed to NBFC collection timing issues and June month-end seasonality

33 branches added in Q1 (on pace for 60-70 FY27 target); 10-12 opened pre-May, rest in June (limited cost impact yet)

FY27 AUM growth 22-24%, OpEx 2.6-2.8%, credit cost 0.5%±10bps, ROE >20% all reaffirmed; no new multiyear targets announced

Growth from branch expansion, connector channel (8%), rate optimization, ticket size increase. Asset quality: NBFC collection hitch in June; corrective steps taken; July recovery expected to continue.

HFC collection efficiency 99.5%, NBFC 97.5%. Not region or cohort specific; seasonal and NBFC-portfolio driven.

Yes, definitely. No flow-forward from NBFC July/August. Incremental growth won't see asset quality drag.

Scaling from ₹15K to ₹25K+ Cr AUM requires product diversification. NBFC: unsecured products, add-ons for existing 200K+ customers. Details in Q2.

No differential in credit behavior/NPA except 2-3% higher bounce rates on <₹7L (which company exited).

New products in NBFC only; HFC maintains 67% housing loan mix meeting principal business criteria. ROE/ROA unaffected unless leverage increases. Could be higher.

Benefit from aggressive write-off policy (>500 DPD). Write-offs tax-eligible. This continues.

Should normalize to 12-15% long-term (vs current 23% and historical 40%).

Branch expansion (60-70 FY27 on track), product expansion in new states. Competition managed via location selection (Odisha, less-intense zones). Growth not an issue.

Margin: spread at 9%, NIM ~13% protected by lower borrowing. OpEx: 2.7-2.8% managed tightly. Credit cost: 0.5-0.6% maintained. Rate risk: 35% repo-linked, 31% MCLR; 0.06% impact modeled.

Quasi-home loans have lower base; base-effect explains growth differential.

Policy continues: anything >500 DPD gets written off. Aggressive, ongoing.

~1,000 connectors across 333 branches (avg 3-4 per branch). Growth proportion TBD.

Q1 delivered 21% YoY; management reiterates target achieved last year; Q1 disburse +36% (overstated by base) but July +25% more realistic

Q1 spread 9% sequentially stable; yield moderation offset by borrowing cost cuts; 66% variable borrowing (35% repo, 31% MCLR) poses rate risk (~6bps impact modeled)

60-70 branches for FY27; Q1 added 33 with limited cost impact (many opened late June); economies of scale maintained

Contiguous expansion strategy; new states (Odisha, Maharashtra) focus areas; IT investment also underway

30+ DPD rose 66bps QoQ to 6.87%; GNPA +18bps to 1.7%; deterioration driven by NBFC collection timing (claimed reversible) but demonstrates portfolio vulnerability despite growth momentum.

NBFC credit cost 1.4% vs HFC 0.24%; NBFC collection efficiency 97.5% vs HFC 99.5%. Consolidated metrics masked by HFC strength. If NBFC deteriorates further, consolidated credit cost could exceed 0.6% guidance.

Q1 disbursement growth 36% inflated by company's prior-year exit from <₹7L loans. July growth +25% more sustainable. Analysts questioned whether 22-24% AUM guidance can be met without deteriorating underwriting or expanding into higher-risk geographies.

66% of borrowings variable (35% repo-linked, 31% MCLR). RBI rate hike modeled at 6bps impact but could be understated. Spread protection relies on customer rate transmission (not always possible in affordable segment).

Field-level attrition 40-45% (down from 50-60% but still high). Competitors entering same geographies poach staff. Geographic expansion (Odisha, Maharashtra) strategy partly defensive response, not pure growth play.

Product diversification announced but still in «formative stage.» No products identified, no timeline, no mechanism disclosed. Risk: either dilutes profitability (if lower-margin) or takes management focus off core business.