Strong growth, margin hold — festive season key for H2

₹780.2 Cr, YoY +34.2%, verified

Management stated 18.7% YoY, ₹18,522 Cr exact

Q2 delivered 8.23%, vs 7.95% Q2FY26, vs 8.35% Q1FY27 (QoQ compression)

Delivered 2.42% annualized Q2, below target but close

CV +8% YoY, CE +12% YoY Q2, modest. Acknowledged delinquent book stretch.

Q2 NIM 8.23% holds target of 8%+. Prior Q1 was 8.35%, so QoQ compression noted but not a guidance miss.

Q1 call flagged Asset Finance challenges. Q2 shows CV +8%, CE +12% YoY growth. Delinquent book still being worked, but management now confident Q3 will show normalization.

Cost-to-income 39.3% Q2 vs 40.7% Q2FY26. Better than Q1FY27 (39.9%), showing productivity from AI initiatives gaining traction.

Customer franchise 24.8M (+18.4% YoY vs 22.9M prior year). Growth momentum in onboarding outpacing loan growth.

From NIM standpoint, we're at 8.23%, pretty much in line. We expect to hold at 8%+. Rates started peaking in Q2; we've had Q1 product mix impact but expect to pull back.

NCDs at 8.25-8.2%, LAP on floating. Cost of borrowing 7.04%. Will manage calibrated repricing; not expecting major NIM impact.

New hitting budgets. Used has internal actions underway; we expect turnaround as we go through Q3 and Q4. Combination of new growth and used improvements.

Drought exposure small, no crop loans at NBFC level. OPEX improved from 40.7% to 39.3% YoY. Focus on AI-driven onboarding reducing sales person time; delivering more customers per head.

CV and CE seasonality. Expect reversion in coming quarter. Not completely stressed, just seasonal effect from Q1 product mix impact.

Hopeful Q4 shows uptick. On cost of funds, we're working hard to manage borrowing in manner that increase is as low as possible. Treasury function balancing instrument mix.

Seasonality on book growth. Target credit cost 2.3% for full year, ±5bps. Expected to flow back in coming quarter.

Each business is complete focus area. LAP growing 3-3.5% QoQ. Unsecured loans at 0.2% positive now turning. Challenges in longer-dated delinquent book but expect turnaround Q3-Q4.

Floating rate book with floating reference rate updated 16th of every month. LAP book primarily ₹24.6M average ticket. 800+ cities distribution. Prepayment part of business model; we price accordingly.

LAP will show increase in near term. Other products calibrated increase. NCD rates now 8.2%+, have ability to reprice. Focus on not losing NIM over next 12 months and manage ALM carefully.

Growth relative term; others 25%, slowdown 20%. Focus on 2.5% RoA annually. Investments in AI, not letting cost balloon. Growth and RoA balance the key focus for next 12-18 months.

Last year ₹455 Cr fee income, ~0.3% on RoA. Rules crystallizing; when they do, we'll come and talk on strategy for insurance side.

Q2 delivered 18.7% disburse growth. H2 expected strong on festive season. Full year growth calibrated by sector headwinds (Asset Finance recovery phased).

Q2 delivered 8.23%. Rate cycle tightening is headwind; management focused on managing repricing and borrowing cost calibration.

Cost-to-income improving suggests capex return on employee productivity. No separate guidance provided.

Cost of borrowing rising (NCDs 8.2%+, repo 7.04%). Asset repricing lagging liability repricing. Sequential NIM compression 8.35% to 8.23%.

CV and CE portfolios showing Stage 2 buildup in Q2. Longer-dated delinquent book acknowledged as ongoing challenge. Assumption of turnaround in Q3 may slip.

Q2 ROA 2.42% annualized, below stated 2.5% target. Achieving target requires both growth and margin hold simultaneously.

H2 festive season is key catalyst for momentum. Economic slowdown or consumer spending contraction could derail growth assumptions.

Insurance commission rules under regulatory review. Management deferred specifics to 'when rules crystallize'. Current fee income ₹455 Cr could face pressure.