Key Operational and Financial Highlights (Q2 FY27)

User and Customer Metrics

  • Registered Users: 79.5 million, up 32.6% year-on-year (YoY).
  • Total Customers Served: 12.8 million, up 22.5% YoY.
  • Active Customers: 3.61 million, up 58% YoY.

Assets and Disbursements

  • Assets Under Management (AUM): ₹9,317 crore, up 68.4% YoY and 16.4% quarter-on-quarter (QoQ).
  • Disbursements: ₹4,612 crore, up 56% YoY.
  • Average Loan Tenure: 17.8 months.
  • Average Ticket Size: ₹43,380.
  • On-book AUM: ₹4,199 crore.
  • Off-book AUM: ₹5,118 crore (45:55 split).
  • Lending Partners: More than 45.

Profitability

  • Total Income: ₹740 crore, up 43% YoY. As a share of average AUM, it moved from 35.9% to 34.2% QoQ.
  • Pre-Provisioning Operating Profit (PPOP): ₹287 crore, up 40% YoY and 12% QoQ.
  • Profit After Tax (PAT): ₹125 crore, doubled YoY and up 31.6% QoQ.
  • Return on Average AUM: 5.78%, up 73 basis points (bps).
  • Return on Average Equity: 21.65%.
  • Effective Tax Rate: 19%, down from 26% last quarter, due to benefits linked to ESOP expenses.

Asset Quality

  • Credit Costs: 6.2% of average AUM, down from 6.8% (QoQ) and 9.3% (YoY).
  • Stage-2 Assets: 2.37%, down from 3.15% (QoQ) and 4.11% (YoY). Management expects this to remain constant throughout the year.
  • Gross NPA: 2.18%, down 7 bps QoQ and 75 bps YoY.
  • Net NPA: 0.34%, improved by 2 bps QoQ.
  • First EMI 90+ Delinquency: 0.69%, down from 0.73% (QoQ) and 1.16% (YoY).
  • Collection Efficiency: 97.12%, improved by 30 bps QoQ.
  • Provision Coverage: Stage-3 coverage at 84.6% and Stage-2 coverage at 77.6%.

Loan Against Property (LAP) Business

  • LAP AUM: ₹737 crore, constituting 7.9% of total AUM, up from 4.1% a year ago.
  • Branches: 107 branches across 9 states and union territories.
  • Customer Overlap: More than 40% of LAP customers are existing Kissht customers.
  • Profitability: The LAP business turned profitable in Q2 FY27, a quarter ahead of the previously guided Q3 breakeven.

Balance Sheet & Capital

  • Net Worth: ₹2,377 crore as of September 30, 2026.
  • Capital Adequacy: 34.76%, down from 40.19% last quarter as IPO capital was deployed.
  • On-book Debt to Equity: 0.94X.
  • Cost of Borrowing: Average cost fell to 13.76% from 14.45% last quarter. Incremental borrowing cost in Q2 was 12.1%.
  • Finance Cost: Fell by 12% QoQ even as borrowings grew.
  • NBFC Subsidiary Ratings: A-/Stable by CRISIL and India Ratings; A/Stable by Acuite (upgraded this quarter).

Fundraising - Preferential Allotment

  • Amount: ₹832 crore.
  • Approval: Approved by shareholders at an EGM on October 14, 2026, and received in-principle approval from exchanges.
  • Investors: Described as large marquee investors.
  • Timeline: Share issuance expected by November 3-4, 2026. Proceeds will be received thereafter.
  • Utilization: 75% will be infused into the NBFC subsidiary to fund growth. 25% will be used for corporate expenses, AI investment, and providing FLDG to scale the off-book business.
  • ROE Impact: Management stated the capital raise is not expected to be ROE dilutive.
  • Future Fundraising: No further fundraising envisaged until AUM reaches ~₹30,000 crore.

Strategic and Operational Updates

Underwriting & Risk Management

  • The company is deliberately shifting towards higher-quality, less leveraged customers.
  • The share of new loans to customers with 3 or more live loans fell by over 35% in the past 12 months and over 7% QoQ.
  • Loans to customers with bureau scores above 760 rose from 20.8% to 24.8%. Only ~4% of loans go to customers scoring below 700.
  • Gold loan exposure has been restricted and now constitutes less than 8% of the total book.
  • Machine learning models (now in their 42nd iteration with an AUC of 75%) continuously monitor for early stress signals, leading to proactive policy tightening. Seven such actions were taken last quarter.

Technology & AI Implementation

  • Underwriting: AI models provide better separation of good and bad customers and offer real-time feedback for risk mitigation.
  • Collections: AI voice agents in early buckets now recover at more than 85% of a human caller's rate.
  • Fraud Management: AI agents propose new fraud rules autonomously. In LAP, AI reads and verifies income proofs, bank statements, and property documents.
  • Cybersecurity: All systems are reported as fully patched against recent PHP vulnerabilities.

Customer Acquisition

  • Blended Customer Acquisition Cost (CAC): ~₹850.
  • CAC for High-Quality Segment: ~₹1,200, justified by higher ticket sizes and longer tenures.
  • Organic Sourcing: ~30.5% of business.
  • Channels: Focus on app sourcing (including targeted campaigns for customers with income >₹1 lakh), partnerships with aggregators (UPI services, payment companies, broking, wealth firms), and a higher share of iOS users.

Macroeconomic Context & Guidance

  • Management cited India's resilient economy (RBI FY27 growth forecast raised to 7.1%) and strong consumption indicators (FMCG growth, festive sales, electricity consumption, GST collections).
  • Acknowledged the RBI's 25 bps repo rate hike to 5.50%.
  • Updated FY27 Guidance:
  • AUM growth guidance raised from 40%+ to 60%+.
  • Credit cost reduction guidance raised to \"emphatically more than 15%\" YoY.
  • Return on average equity expected to remain above 20%.
  • Gross NPA expected to remain below 2.25%.
  • Cost Outlook: Operating leverage is expected to sustain an improvement of 25-40 bps QoQ for many quarters. Borrowing costs are expected to fall by at least 150 bps over the next 3-4 quarters.

Management Participants

  • Mr. Ranvir Singh – Chairman, Director & Chief Executive Officer
  • Mr. Krishnan Vishwanathan – Director & Chief Financial Officer
  • Ms. Neha Shivran – Head of Analytics and Data Science (joined for a specific question)
  • Senior Management Team