Key Financial Performance

Asset Under Management (AUM):

  • Grew 95% Year-on-Year (YoY)
  • Quarter-on-Quarter (QoQ) growth moderated to 3% in Q2 FY27, compared to 16% in Q1 FY27 and over 30% in Q4 FY26
  • Guidance of 50-60% AUM growth maintained for FY27

Profitability:

  • Operational profitability increased 62% YoY
  • Reported highest operational profitability in Q2
  • Return on Assets (ROA) at 3%
  • Return on Equity (ROE) crossed 10% for the first time in several quarters

Income Statement:

  • Total income grew 88% YoY
  • Yield on gold loans increased from 20% to 20.8%
  • No one-time gains recorded in revenues

Branch Network:

  • Expanded from 92 branches (September 30, 2025) to 122 branches (September 30, 2026)
  • Addition of approximately 2.5 branches per month
  • Guidance of adding 50-60 branches for FY27, with target of ~150 branches by December 2026

Capital Structure:

  • Capital adequacy ratio at 28.7%
  • Leverage of more than 2.5x

Portfolio Composition & Strategy

Gold Loan Business:

  • Core focus on building sustainable gold loan franchise
  • Conservative lending practices with disciplined loan-to-value (LTV) approach
  • Continuous collateral monitoring and robust risk management processes
  • Recent gold price correction had no material impact on portfolio quality

Personal Loan Portfolio:

  • Represents approximately 4% of total AUM but contributes 27% of interest income
  • Average ticket size: ₹5,000 to ₹2 lakhs per customer, with average of ~₹20,000
  • Tenure: 15 days to 9 months
  • Current portfolio size: ₹45-50 crores
  • Target mix: 90% secured (gold loans) and 10% personal loans

Off-Book AUM & Co-Lending:

  • Off-book AUM nearly doubled to ₹78 crores in Q2
  • Share of co-lending increased to 5.8% (from 1-2% previously)
  • Medium-term target: 30-35% of overall portfolio to be off-book
  • Currently working with 2 partners, with 1 new partner going live in Q3 and another revived partner in Q4

Asset Quality & Collections

Non-Performing Assets (NPA):

  • Gross NPA increased to approximately 2.6%
  • Net NPA stood at 2.4%
  • Increase attributed to regulatory framework changes requiring transition from bullet repayments to monthly/bimonthly/quarterly repayments
  • Management emphasized that higher NPAs in gold loans don't translate to credit losses due to significant customer equity and margins

Collection Efficiency:

  • Declined to ~90% from ~98% in previous quarter
  • Decline attributed to same portfolio that contributed to NPA increase

Funding & Liability Management

Borrowing Mix:

  • NCDs account for 57% of total borrowings
  • Supported by retail investor base of ~30,000 bondholders
  • Strategy to diversify borrowing mix and increase bank borrowings
  • Internal cap of 40-45% for NCD share of overall borrowing
  • Received adequate bank sanctions; timing depends on business requirements

ALM Position:

  • Maintained adequate liquidity
  • Positive cumulative mismatches across all buckets

Strategic Initiatives

Brand Transition:

  • Transitioning towards unified Augmont brand across gold loan business
  • Aimed at providing customer clarity and building market trust
  • Leveraging Augmont's 5-decade gold ecosystem credibility

Regulatory Adaptation:

  • Industry adapting to revised RBI regulatory framework (implemented April 2026)
  • Changes include slab-wise LTV restrictions and new repayment frameworks
  • For loans above ₹2.5 lakhs: additional documentation including business registration proofs and income documents

Market Position:

  • Focus on Tier 2, Tier 3 cities and customers with limited access to banking channels
  • Customer retention rate at maturity: >60%
  • Targeting unorganized market share (60% of India's gold loan market)

Forward-Looking Commentary

Growth Drivers:

  • Focus on improving branch productivity
  • Strengthening customer relationships
  • Expanding lending partnerships
  • Building capabilities for next growth phase

Market Challenges:

  • Gold price correction affecting customer loan-taking behavior
  • Increasing competition from banks and larger gold NBFCs
  • Industry transition to new regulatory framework

Financial Targets:

  • Maintain 50-60% AUM growth guidance
  • Increase off-book AUM to 30-35% of portfolio over 3 years
  • Focus on increasing net interest margin, reducing cost of operations and cost of funds

Participants

Management: Mr. Priyank Kothari (Whole Time Director), Mr. C.V. Rajendran (Director), Mr. Aakash Jain (Chief Financial Officer)

Moderator: Ms. Forum Goshar (Adfactors PR - Investor Relations)