Financial Performance Highlights

Q2 FY27 Performance:

  • Net Interest Income: ₹52 crores, representing 40% year-on-year growth
  • Profit After Tax: ₹14 crores, representing 20% year-on-year growth

H1 FY27 Performance:

  • Net Interest Income: ₹94 crores, representing 39% year-on-year growth
  • Profit After Tax: ₹27 crores, representing 28% year-on-year growth

Balance Sheet Metrics:

  • Assets Under Management (AUM): ₹1,811 crores as of September 30, 2026, showing 21% year-on-year growth
  • Disbursements: Q2 FY27 - ₹267 crores (vs. ₹233 crores in Q2 FY26); H1 FY27 - ₹493 crores (vs. ₹398 crores in H1 FY26)
  • Capital Adequacy Ratio: 24.69% as of September 2026

Operational Metrics

Business Overview:

  • NBFC offering loans across multiple segments: new 2-wheeler, 3-wheeler, used car, MSME LAP, top-up loans, personal loans, used 2-wheeler loans, and battery replacement loans
  • Operational presence: 148 locations across 7 states (Maharashtra, Gujarat, Rajasthan, MP, Chhattisgarh, UP, Karnataka)
  • Distribution network: 1,900+ dealers
  • Employee strength: 2,061 employees, including 1,100+ sales team members
  • Customer base: 32,330 new customers added in Q2; total live customer base over 2.45 lakhs

Product Mix (Q2 FY27):

  • 2-wheeler loans: 83.10%
  • Top-up loans: 5.70%
  • 3-wheeler loans: 3.00%
  • Used vehicle loans: 1.60%
  • Over 95% of portfolio remains secured

Asset Quality:

  • Stage 1 assets: ₹1,710 crores (94.4% of total portfolio)
  • Stage 2 assets: ₹47 crores (2.6% of gross assets)
  • Stage 3 assets (GNPA): ₹54 crores (2.96% of gross assets)
  • NNPA: 2.19%
  • Expected Credit Loss provision: ₹23 crores (vs. requirement of ₹13 crores)

Strategic Developments

Credit Rating Upgrade:

  • CARE Ratings upgraded company from BBB+ positive to A- stable
  • Upgrade reflects sustainable scale with AUM CAGR of 36.33%, access to incremental funding at lower cost, and expectation of ₹100 crores capital infusion

Capital Raising:

  • Preferential issue of equity and warrants raising approximately ₹100 crores
  • Funds expected to be mobilized by November 6, 2026, after receiving principal approval from NSE/BSE
  • Capital expected to support growth for 4-6 quarters

Expansion Initiatives:

  • Added 16 new offices in the last year
  • Expanded into Karnataka with 100+ dealers onboarded in first 60 days of operations
  • Activated 7 BC partners with 3 more in discussion
  • Added MSME LAP product with ticket size ₹8-25 lakhs, currently disbursing ₹2-2.5 crores monthly

Management Guidance

Growth Outlook:

  • FY27 AUM growth guidance: 30-35%
  • Expect continued momentum from festive season (Navratri, Diwali)
  • Target MSME LAP disbursement of ₹5 crores monthly by January 2027
  • Small business loan expansion adding 3 branches recently, 2 more planned this quarter

Cost of Funds:

  • Current average borrowing cost: 10.14% (reduced by 72 bps post rating upgrade)
  • ₹600 crores of higher-cost borrowing to be repaid by March 2027
  • Expect further 25 bps reduction in borrowing costs in Q3-Q4 FY27
  • Targeting 50-75 bps reduction in incremental borrowing rates

Technology Investments:

  • Yearly technology spend: approximately ₹2 crores
  • Technology team: 28 people
  • Recent improvements: Disbursement time reduced from 3.5-4 days to 1.5-2 days, targeting same-day disbursement
  • Implementing AI tools for MIS, reporting, and projections

Other Corporate Updates

Dividend Declaration:

  • Second interim dividend of ₹0.25 per equity share (face value ₹10) declared for FY26-27

Management Changes:

  • Chairperson changed from Mr. Nalliepily Ramaswami Parameshwaran to Mrs. Neelam Tater (Independent Director)

Q&A Session Highlights

Growth Strategy:

  • Focusing on newer territories (UP, MP, Rajasthan, Karnataka) for dealer additions
  • Maharashtra and Gujarat already have established dealer networks

Customer Profile:

  • 40% of borrowers are New-to-Credit (NTC)
  • NTC customers show similar delinquency behavior due to 75% LTV restriction
  • Market share of 15% in locations with 4+ years of operations

Product Yield:

  • Used 2-wheeler loans: 27-28% IRR
  • Top-up loans: 32% IRR
  • Personal loans: ~32% IRR (proceeding cautiously)
  • Small business loans: 27-28% IRR with average ticket size ₹5 lakh

Operational Efficiency:

  • Operating expenses increased 28% YoY due to expansion into new locations and Karnataka entry
  • Bounce rate: 18-20%; 7-8% customers consistently delinquent

Industry Outlook:

  • Healthy auto demand with 2-wheeler registrations at 53 lakh units in Q2
  • 78% of dealers expect growth during October-December period
  • Rural and Tier 2/3 markets driving demand