Strong momentum, execution risk on ₹550Cr AUM target remains

₹230 Cr secured AUM vs ~₹46 Cr implied in prior call (if 5x), aligns

Q1 delivered ₹17.4 Cr revenue, ₹7.0 Cr PAT. At this rate, ~₹69 Cr revenue, ~₹28 Cr PAT full year

Currently 13.25% blended; fundraising at 10.35–13%. Trajectory credible but execution-dependent

Need +₹155–205 Cr in 9 months (53–59% growth). Against 69.6% QoQ in Q1; feasible but aggressive

Claimed as short-period achievement; 6% of current AUM. Early stage but validating proof-of-concept

FY26 guidance was ₹550 Cr by FY27; now at ₹345 Cr in Q1 with +69.6% QoQ growth. On-track trajectory, but ₹550 Cr end-FY27 is tighter than expected when guidance was set.

Prior call said reduce 13–14% to 11–12% within 12 months. Currently at 13.25%, targeting 11.75–12.5% by FY27-end. Slower than stated, but management showed actual fundraising at 10.35–13% (mix and match). Execution tracking.

Secured portion now 67% (was 62% in Q4); unsecured down to 18% (was 26%). Trajectory to 80:20 (secured:digital) is on track. Portfolio mix improvement validated.

Cash My Salary launched with ₹23 Cr AUM and claimed 95–96% early-cycle collections. Not mentioned in prior call as live product; represents new near-term growth lever.

Prior quarter NCD was 14%; Q1 we've raised at 13% and 10.35% term loan. Blended 13.25% today. Target by year-end 11.75–12.5%, gradually declining. Mix approach, not acceleration.

Retail (hardware/manufacturing), pulp distribution, small manufacturing units. Tier 2 cities, minimum 3-year business vintage, collateral 50% LTV build-up property. No trading, livestock, or pure real estate.

Guidance ₹75+ Cr revenue, ₹25–30 Cr PAT (conservative). Q2–Q4 better than Q1. Digital portfolio 95–96% collection in month 0–1, salaried customer base. Target gross NPA ≤1.25%, net <1%.

Max leverage 4x (prefer 3.5x–4x). At ₹200 Cr net worth, can raise ₹800 Cr debt to ₹1,000 Cr AUM. Then raise equity before more debt. RBI allows 7x; lenders comfortable at 4.5–5.5x.

4% opex + acquisition cost. Digital marketing (Google Ads, agencies). 70% fresh loans, 30% repeat (90-day pull window). Repeat customers re-offered at better rates. Market size ₹50,000+ Cr salaried lending; not worried on supply.

In-house. EMI reminders via AI calling, digital OTP login, signature. By end of year, full digital on-boarding with AI for unfilled requirements. 50+ tech team in Noida.

Salaried customer with CIBIL, 2-yr Form 16, 6+ months current employment. Won't screw up CIBIL for small loan. Calculation based on cash flow + salary + other obligations. No wish to serve 12–36 month PL market.

Target is 15–17%, not 23–24%. As cost of funds drop, ROI follows. Operating Tier 2 where organized credit still absent. PPI license (3–5 months) = QR monitoring, cross-sell advantage. Sticky customer via 10% limit bump on 6-month QR usage.

Q1 delivered ₹17.4 Cr. At Q1 run rate, full-year ~₹69 Cr; guidance set higher for seasonal/ramp expectations. No specific quarterly breakdown given.

Q1 PAT ₹7.0 Cr; guidance implies Q2–Q4 avg ~₹6–7.7 Cr/quarter. Not exceptional; may rely on cost-of-funds decline and operating leverage.

Management aiming for 15–17% ROI on borrowers (down from 21–23% today) as cost of funds normalizes. Margin compression expected.

50+ in-house tech team in Noida with core AI/platform built. Future opex mostly recurring; one-time heavy lifting done.

Need ₹155–205 Cr AUM addition in 9 months. While Q1 grew 69.6% QoQ, macro headwinds or fundraising delays could slow pace. Market capacity or customer quality thresholds may limit velocity.

Q1 NPM 40.3% is unsustainable; driven by elevated cost of funds (13.25%) and low opex base. As borrowing costs fall to 11.75–12.5%, ROI must follow, shrinking NIMs. Competition will accelerate this dynamic.

Digital platform only 1–2 cycles old with ₹23 Cr AUM (6% of total). Management claims 95–96% month 0–1 collections, but long-term default (6+ months out) unproven. 70% fresh, 30% repeat model depends on acquisition channels staying cheap; if digital marketing inflation occurs, CAC will rise.

Currently ₹93 Cr paid-up capital. To reach FY30 ₹3,000 Cr AUM with 5.5% Tier 1 buffer, need ~₹165 Cr Tier 1 minimum. Management says will target ₹250–300 Cr paid-up by FY30. Requires external equity raise (preferential shares) and/or retained earnings. SFB license timeline uncertain.

Regency's strategy is Tier 2 cities and unorganized MSME lending. However, larger players (HDFC, ICICI, AU Small Finance, others) are expanding into Tier 2. Collateral values, underwriting standards, and pricing power may compress if competition saturates region. Geographic diversification <20% per state limits scale but also limits risk.