Strong profit growth masks softening AUM momentum; diversification underway

Delivered PAT ₹13.3 Cr with 36% YoY growth — exact match

Implies prior-year AUM ₹1,419 Cr; growth rate plausible but not in delivered result

Specific figures claimed; no contradictory data in result

Consistent with 36-38% NII/PAT growth shown in result

Capital adequacy fell to 24.4% from 29.81%, prompting fundraise

From prior 25-30% to current 35-40% for FY27, implying year-end AUM ₹2,340-2,420 Cr (consistent with prior ₹2,300-2,400 Cr target). Reaffirmation of ambition but no new higher target.

CAR fell to 24.40% from 29.81% in FY25, triggering ₹100 Cr preference share raise by October. Signals balance-sheet tightening.

Strategic partnership with Sreesastha (Namma Loans) already live in Karnataka. FY27 AUM target ₹60-75 Cr, breakeven in 6-12 months.

MSME LAP (₹8-20 lakh tickets, 2-3% FY27-end contribution) and battery replacement finance (₹60k tickets for e-rickshaws) launched. Early-stage, immaterial Q1 revenue.

Yes, we anticipated this and are raising ₹100 Cr via preference shares by September or October to support growth and expansion.

Expecting 2-3% AUM contribution from LAP by FY27 end. Ticket size ₹8-20 lakhs. Long-term goal is to reduce two-wheeler from 80% to 65% within three years.

Q1 (April-June) is naturally weak due to fewer festivals. Q2-Q3 have Raksha Bandhan, Ganpati, Dussehra, Diwali. Disbursements grew 35% YoY in Q1; historically Q2-Q3 show huge AUM jumps. Company growing 35-40%, so seasonal run-down also happens.

Expecting AUM of ₹60-75 Cr with Namma partner in FY27. Break-even typically 9-12 months, but early response is strong; could break even in 6-7 months. Hired experienced TVS Motor/TVS Credit veteran as head.

90% of tech and software are proprietary (LOS, LMS, LAS). For MSME LAP, first time took outsourced software from vendor. Company spends on tech as needed; will remain similar % of expenses. Speed and approval/disbursement turnaround are winning points.

Can't give specific guidance, but will grow in range of historical performance. AUM will grow 35-40%. This quarter PAT grew 30%+ YoY; similar performance expected in future quarters.

Borrowing reduced steadily; kept healthy ₹200 Cr liquidity in Q1 (vs ₹350 Cr in March). Raised ₹100-150 Cr this quarter. High liquidity caused slight interest burden. Borrowing mix: 60% term loan, 25% NCD, rest PTC and CC.

MSME LAP and battery finance just launched; major AUM will come from personal loan, top-up, used 2-wheeler, three-wheeler. All-India TVS Motor tie-up for 3-wheeler. These four products + SBL (₹6-7 Cr/month) will reduce 2-wheeler from 84% to 75-77% by FY27-end.

Targeting 3.5% ROA. Changing lending mix to include personal loan, top-up, used 2-wheeler (high-yield). ~30% of further lending in higher IRR products. NIM will be 13-14% as cost of borrowing reduces and lending yield increases.

First, market size (two-wheeler intake). Second, TransUnion data on payment cycle and loan performance. Third, competitor presence and target to reach 15% market share in 4 years. Most important: leader; OEM comfort. No plans to expand in northern states this year; focus on UP, MP, South expansion.

Not co-lending; 100% Manba funding. They act as BC partner. Complete hypothecation is Manba's only.

85% of collection is in-house, vs competitors outsourcing to third-party agencies. That is our biggest USP. ~600 people in collection team. Directly supports opex control.

Upgraded from prior 25-30%; implies ₹2,340-2,420 Cr year-end (consistent with prior ₹2,300-2,400 Cr target). Q1 lagged at 22% YoY; requires Q2-Q3 ramp.

Cost of borrowing reducing, lending yield increasing. Currently 10.86% COB; balance of these will sustain NIM despite higher recent cost of borrowing.

90% proprietary tech (LOS, LMS, LAS); incremental spend on personal loan software for expansion phase. No specific CapEx ₹ guidance provided.

Two-wheeler exposure 84.1% of AUM. Cyclicality in auto sales, policy changes on vehicle finance regulation pose concentration risk. Three-year plan to reduce to 65% is gradual.

CAR fell to 24.40% from 29.81% in FY25; well above 15% regulatory minimum but tight for the stated 35-40% growth ambition. Capital raise mitigates but execution risk remains.

Q1 AUM growth 22% YoY and 1% QoQ lagged prior 25-30% guidance. Management upgraded guidance to 35-40% for FY27, but proof of acceleration into Q2-Q3 is required.

Average cost of borrowing at 10.86%, up 15-20 bps. If sustained, margin pressure. Management attributes to high liquidity (₹200 Cr) maintained in Q1; temporal.

Namma Loans partnership (Sreesastha) in Karnataka/South India just launched; MSME LAP and battery finance immature. Revenue contribution minimal in Q1. Ramp-up may fall short of ₹60-75 Cr AUM target for Namma.