Emerald Finance Q1 FY27 Net Profit Up 52.7%

Q1 FY27 Consolidated Total Income: ₹9.44 Crores, representing 39.97% year-on-year growth
Q1 FY27 Consolidated Net Profit: ₹4.88 Crores, representing 52.72% year-on-year growth
Diluted EPS: Improved to ₹1.44 from ₹0.92 on year-on-year basis
Assets Under Management (AUM): ₹125 Crores as of June 30, 2026
EWA Portfolio: ₹12.5 Crores (part of total AUM)
MSME and Personal Loan Portfolio: Majority of remaining ₹112.5 Crores AUM

Monthly Run Rate: ₹26 Crores (₹12.5 Crores disbursals + ₹13.5 Crores cross-sell)
Average Ticket Size: ₹26,000
Corporate Clients: Onboarded 32 new corporate organizations in Q1 FY27
Active Corporate Clients: Approximately 210 as of June 30, 2026
Total Registered Employees: 40,000 employees
Monthly Active Users: Approximately 5,000 employees (12.5% activation rate)
Revenue Contribution: 10.5% of consolidated revenue in Q1 FY27

Q1 FY27 Distribution: ₹290 Crores (down from ₹375 Crores in Q4 FY26)
Distribution Fees: Varies by bank partner (HDFC: 1.25%, ICICI: 0.75%, RBL: 1%, Average: ~0.9-1%)
Impact: Slowdown due to RBI restrictions on gold loan lending

AU Small Finance Bank: Partnership to strengthen gold loan offerings
Credila Financial Services: Strategic alliance for education loan solutions (₹1 Crore disbursed last month)
New Product Development: Digital gold, silver, small-ticket SIP, pocket insurance in final testing phase, expected launch within a month

Net Worth: ₹90 Crores
Outstanding Debt: ₹27 Crores (₹16 Crores from banks, including newly announced ₹10 Crore line from ICICI Bank)
Debt Capacity: Additional ₹63 Crores available while maintaining 1:1 debt-equity ratio
Borrowing Cost: Average ~12% (NBFCs: ~14%, SBI: ~10.5%)
Equity Dilution: Not planned as of current date

NPAs: Rising but remain below provisioning levels
Provisioning Rate: 0.3-0.35% of book
EWA Provisioning: ₹3 Lakhs provisioned for 90+ days book
Business Loan Provisioning: ₹8 Lakhs provisioned for 90+ days book, ₹6 Lakhs written off in quarter
Recovery Rate: Recovered ₹4 Lakhs from previously written-off accounts
Risk Assessment: 50-55% rejection rate for corporate EWA onboarding due to economic conditions

FY27 EPS Guidance: ₹7 (requiring 66% PAT growth year-on-year)
Growth Expectations: PAT growth to stabilize at 40-50% in next 2-3 years from current 80-100% CAGR
PAT Margin Outlook: Expected to stabilize at 40-45% over next five years (currently 50-51%)
EWA Revenue Target: Expected to stabilize at 30-40% of consolidated revenue (currently 10.5%)
Q1 Performance Context: Traditionally slower quarter for financial services businesses

Employee Benefit Expenses: Reduced to ₹93 Lakhs from ₹1.5 Crores in previous quarter due to lower incentives from slowed distribution business
Fees and Commission Expenses: Reduced due to shift toward more direct business sourcing
Geographic Distribution: Majority concentration in North India with presence in Chennai, Calcutta, Pune, Bombay

Platform Availability: Android app, web portals, WhatsApp
Customer Engagement: Multiple channels with significant WhatsApp transaction volume
LSP RE Partnerships: Exploring partnerships with fintech startups for market expansion

Main Competitors: MoneyView (Jify), Refyne
Market Position: One of three major players in EWA space with room for 10-15 additional players
Competitive Advantage: Listed NBFC status with focus on balanced growth and risk management

Conference Call Participants: Sanjay Aggarwal (Managing Director), Gurmeet Kaur (Chief Risk Officer), Talin Aggarwal (Head - Business Development), Amanpreet Sodhi (Head - EWA Sales)
Moderator: Karan Thakur from Kirin Advisors Private Limited
Company Secretary: Amarjeet Kaur
Regulatory Compliance: Confirmed no unpublished price sensitive information was shared during the call