Key Quantitative Figures: Q1 FY27 Performance

Operational Metrics

  • AUM: INR 30,319 Cr, a growth of 16.4% YoY and 2.5% QoQ.
  • Active Borrowers: 44.51 Lakh, a decrease of 2.4% YoY but an increase of 0.8% QoQ.
  • Disbursements: INR 6,107 Cr, up 11.9% YoY but down 26.5% QoQ.
  • Branches: 2,276, a increase of 7.7% YoY; 42 new branches added in the quarter.
  • Employees: 21,981, up 3.0% YoY; employee attrition was 20.6% (Q1 FY27) vs. 25.8% (Q1 FY26).
  • TTM Write-off: INR 1,640 Cr AUM and 4.0 Lakh borrowers on a trailing twelve-month basis.

Asset Quality Metrics

  • Collection Efficiency (Excl. Arrears): 97.4%
  • Collection Efficiency (Incl. Arrears): 97.7%
  • GNPA (GL: 60+ dpd, RF: 90+ dpd): 2.18%
  • PAR 90+: 1.46%
  • NNPA (GL: 60+ dpd, RF: 90+ dpd): 0.76%
  • ECL Provisioning %: 3.20%
  • Credit Cost (non-annualised): 0.72%
  • Write-off in Quarter: INR 364 Cr

Profit & Loss Statement (INR Cr)

  • Net Interest Income (NII): 1,164
  • Pre-Provision Operating Profit (PPOP): 873, up 33.6% YoY
  • Profit After Tax (PAT): 493, up 719.7% YoY
  • Bad Debt Recovery: INR 13.3 Cr
  • Interest income on Stage 3 portfolio de-recognized: INR 48.3 Cr

Key Ratios

  • Interest Spread: 12.6%
  • Net Interest Margin (NIM): 14.4%
  • Cost of Borrowings (Wgtd. Avg.): 9.2%
  • Cost-to-Income Ratio: 29.3%
  • Opex/AUM Ratio: 4.8%
  • Return on Assets (ROA) TTM: 5.9% / 4.0%
  • Return on Equity (ROE) TTM: 24.4% / 16.0%

Capital & Liquidity

  • CRAR %: 24.9% (Tier 1: 24.2%)
  • Debt-to-Equity Ratio: 3.0
  • Total Equity: INR 8,347 Cr
  • Liquidity Assets: INR 3,536 Cr (Cash & Cash Equivalents), representing 10.4% of total assets.
  • Funding Sanctions: INR 2,993 Cr (in hand) + INR 9,440 Cr (in pipeline).
  • Private NCD Issuance: INR 425 Cr in the quarter to diversify liability base.

Strategic and Business Updates

Product Mix & Growth

  • Retail Finance (RF) Share: Increased 250 bps QoQ to 20.6% of AUM from 18.1%.
  • AUM Mix: Group Loans (GL) constitute 79.4% (INR 24,061 Cr) and Retail Finance (RF) constitutes 20.6% (INR 6,258 Cr) of total AUM.
  • New Borrower Addition: 2.5 Lakh new borrowers added in Q1, with 35% being New-to-Credit (NTC).
  • Digital Adoption: Grameen Mahi customer app onboarded 4.0 Lakh customers in Q1, taking the total base to 15.3 Lakh (34.5% of borrower base). Digital collections were at 24.2% vs. 16.3% in Q1 FY26.

Revised ECL Model

The company implemented a revised Expected Credit Loss (ECL) model with enhancements:

  • Longer historical period: Extended from 36 months to 120 months.
  • Forward-looking estimates: Introduces scenario modelling (Stable period, Major external events, Enhanced stress events) with probability-weighted ECL.
  • Macroeconomic factors: Uses a regression-based model for a 12-month outlook.
  • Additional Provision: The model incorporates an additional provision of INR 41 Cr due to the ongoing West-Asia crisis.

Project Shakti - Strategic Vision

The presentation outlines a strategic vision termed "Project Shakti" for the next ten years with the following objectives:

  • Business Objectives: Build leadership in inclusive finance, become a trusted digital financial services provider for women, and strengthen presence in the low-and-middle income segment.
  • Financial Targets:
  • AUM Growth: 20% - 25% CAGR
  • Customer Growth: 8% - 10% CAGR
  • ROA: 4.0% - 4.5%
  • ROE: 18.0% - 20.0%
  • Strategic Levers: Accelerate growth in secured lending, leverage technology and AI, maintain competitive pricing, and benchmark customer and employee loyalty.

Geographic and Portfolio Distribution

  • Top 5 States by AUM: Karnataka (29.3%), Maharashtra (21.7%), Tamil Nadu (17.5%), Madhya Pradesh (8.4%), Bihar (4.9%).
  • Top Districts Concentration: Top 1 district constitutes 2.4% of AUM; Top 10 districts constitute 17.3% of AUM.
  • Asset Quality by State: PAR 90+ ranges from 1.6% in Maharashtra to 3.3% in Bihar.

ESG & CSR Initiatives

  • ESG Ratings: Sustainalytics (Score: 20.7, 'Medium Risk'), S&P Global (53/100), CDP ('C' – Awareness).
  • Certifications: M-CRIL Microfinance Grading (M1C1), Client Protection Certification (Gold Level).
  • Social Bond Framework: Sustainalytics provided a Second Party Opinion that the company's Social Bond & Loan Framework is credible and impactful, aligned with international principles.
  • CSR Focus Areas: Education, Health, Livelihood, Rural Development, and Disaster Relief.

Capital Structure Impact

The disclosure is an operational update. No specific change to the capital structure (e.g., equity dilution, new issuance) was announced in this filing.

Forward-Looking Statements

The document contains extensive cautionary language regarding forward-looking statements, noting they involve risks and uncertainties and are not guarantees of future performance. Factors that could cause actual results to differ include domestic and international economic conditions, changes in government regulations, tax regimes, and other statutes.