Financial Performance Highlights (Q2 FY27 vs Q2 FY26)

  • Disbursements: ₹1,153 Cr (up 20% YoY from ₹963 Cr)
  • Assets Under Management (AUM): ₹14,177 Cr (up 20% YoY from ₹11,767 Cr)
  • Net Income Margin: ₹463 Cr (up 19% YoY from ₹389 Cr)
  • Net Profit: ₹267 Cr (up 18% YoY from ₹227 Cr)
  • Gross NPA: 1.7% (increased by 13 bps from 1.6%)
  • Net NPA: 1.3% (increased by 10 bps from 1.2%)
  • Opex Ratio: 2.8% (increased by 18 bps from 2.7%)
  • Return on Assets (RoA): 7.7% (decreased by 18 bps from 7.9%)
  • Return on Equity (RoE): 20.1% (increased by 8 bps from 20.0%)

Financial Performance Highlights (H1 FY27 vs H1 FY26)

  • Disbursements: ₹2,206 Cr (up 27% YoY from ₹1,738 Cr)
  • Net Income Margin: ₹904 Cr (up 19% YoY from ₹758 Cr)
  • Net Profit: ₹528 Cr (up 19% YoY from ₹446 Cr)
  • Gross NPA: 1.7% (increased by 13 bps from 1.6%)
  • Net NPA: 1.3% (increased by 10 bps from 1.2%)
  • Opex Ratio: 2.8% (increased by 11 bps from 2.7%)
  • RoA: 7.7% (decreased by 13 bps from 7.9%)
  • RoE: 20.1% (increased by 10 bps from 20.0%)

Operational and Strategic Updates

  • Branch network expanded to 397 branches with addition of 58 branches during H1 FY27 (25 in Q2 FY27)
  • Geographic expansion ongoing in Maharashtra and Odisha with encouraging traction
  • Sourcing channel diversification through connector network expansion and digital marketing initiatives
  • Average Ticket Size (ATS) increase remains a strategic priority
  • Portfolio diversification beyond Home Loans and SME Loans under evaluation
  • Digital adoption: 92% of agreements executed digitally, 94% of collections processed digitally

Asset Quality and Collections

  • Collections impacted by performance in NBFC business leading to increased delinquencies
  • Initiatives undertaken to strengthen collection framework in NBFC business
  • Management confident of improved collections and normalization of asset quality metrics by end of FY27
  • Credit cost stood at 0.7% for the quarter

Profitability Metrics

  • Spreads stood at 8.9% for the quarter
  • Opex ratio remained at 2.8%

Guidance and Outlook

  • Company reaffirms FY27 AUM growth guidance of around 22%
  • Outlook on spreads and operating costs maintained
  • Branches opened during H1 expected to contribute to business growth from Q3 onwards

Company Overview

  • Serves over 1.99 lakh customers across Tamil Nadu, Telangana, Andhra Pradesh, Karnataka, Odisha and Maharashtra
  • Product offerings include home loans for purchase and self-construction, home improvement loans, extension loans, loan against property, and business loans