Key Financial Figures & Operational Metrics

  • Gross AUM: Stood at ₹11,284 crores as of June 30, 2026, registering a year-on-year (YoY) growth of 24%.
  • Profit After Tax (PAT): ₹143 crores for the quarter, growing 23% YoY and 4% quarter-on-quarter (QoQ).
  • Disbursements: Reported disbursement for the quarter was ₹641 crores. However, the amount cleared into customer accounts was ₹1,040 crores. The variance is due to a one-time accounting policy change from recognizing disbursements at cheque handover to cheque realization.
  • Return on Equity (ROE): 17.5% for the quarter.
  • Net Worth: ₹3,353 crores.
  • Portfolio Yield: Stable at 14.8% QoQ. Q1 disbursement yield was 14.9%.
  • Finance Cost: Stable at 8.2% QoQ. Marginal cost of funds was stable at 7.9%.
  • Net Interest Income (NII): Grew 30% YoY.
  • Operational Efficiency: Cost-to-income ratio for the quarter was 36%. Opex ratio was 4%, down 10 bps YoY.
  • Liquidity: Comfortably placed with liquidity exceeding ₹800 crores and undrawn sanctions of over ₹1,500 crores.

Asset Quality & Provisions

  • Stage 3 Assets (GNPA): Increased to 1.5%, up 30 bps from previous periods, attributed to seasonal factors.
  • Provision Coverage Ratio (PCR): Stable at 26% for Stage 3 assets.
  • Total ECL Provisions: ₹93 crores, against a regulatory threshold of ₹52 crores.
  • Credit Cost: Stable at 0.5% (50 bps) on an annualized basis.
  • BT-out Rate: Reduced to ~4%, down 50 bps YoY.
  • Collection Efficiency: Averaged ~97% for the quarter, with April being lower (~96.2-96.4%) and improving into June.

Strategic Update & Accounting Policy Change

The company implemented a conscious transition to recognize disbursements only upon cheque realization (bank clearance), aligning with strong operational controls. This is a one-time accounting change with no P&L impact, as interest was already being recognized upon realization. It temporarily shifted the recognition of disbursements worth approximately ₹405 crores, affecting Q1 reported numbers but not the underlying business trend, which remains strong with a robust login and sanction pipeline.

Borrowings & ALM

  • Borrowing profile remains diversified with over 30 counterparties.
  • Share of National Housing Bank (NHB) funding is at 15%, up 230 bps YoY. A drawdown of ₹172 crores was made from NHB in June 2026 at 7.3%.
  • Average borrowing tenure is more than 8 years.
  • Asset-Liability Management (ALM) is positive across all buckets.

Product & Portfolio Mix

  • Home Loans vs. LAP: The portfolio mix is stable with ~57% in home loans and ~43% in Loan Against Property (LAP). Disbursements follow a similar ratio.
  • GNPA by Product: Delinquency is similar between products (Home Loans: ~1.48%, LAP: ~1.52%).
  • Interest Rate Types: 50% fixed rate, 35% semi-variable, 15% variable. The first reset of semi-variable loans (disbursed from Jan '24) is expected in Q4FY27.

Growth & Expansion

  • Branch Network: Plan to add 40-45 branches in FY27. No branches were added in Q1; additions are planned for Q2 and Q3.
  • Employee Base: Increased by ~160 employees in Q1, primarily for collections, existing branch strengthening, and new tech/AI initiatives.

Technology & AI Adoption

The company is embedding AI across functions like customer service (vernacular voice chatbots), collections (AI-assisted calls), operations, and marketing to improve productivity, customer experience, and risk management. Specific partner names were not disclosed.

FY27 Guidance Reiterated

Management confidently reiterated its full-year guidance:

  • Loan Growth: 25% - 30%
  • Credit Cost: 40 - 50 bps
  • Spreads: Maintain above 6%
  • Branch Addition: 40 - 45 branches

Q&A Highlights

  • July Disbursements: Were strong at approximately ₹400 crores (on cheque realization basis), indicating a pickup in trend.
  • Asset Quality Outlook: Management expects Stage 3 to stabilize around current levels (~1.5%) by the end of Q2FY27 and expects resolutions and improvements to start from Q3FY27 onwards.
  • Collection Efficiency: Expected to remain under pressure in Q2, with improvement anticipated in Q3.
  • Growth Sustainability: Management expressed confidence in achieving guided growth rates, citing a strong operational pipeline and the one-time nature of the Q1 accounting impact.
  • Co-lending Book: An earlier discrepancy in AUM growth calculation (24% vs 30% YoY) was clarified. The ~24% figure is correct and includes a co-lending book of ~₹450 crores that was previously not consolidated in AUM but now is, following industry practice.