Key Financial Figures - Quarter Ended September 30, 2026 (₹ in lakhs)

Income Statement Highlights:

  • Revenue from Operations: ₹17,539.28
  • Interest Income: ₹14,981.57
  • Dividend Income: ₹4.26
  • Fees and Charges Income: ₹769.75
  • Net gain on fair value changes: ₹0.90
  • Net gain on derecognition of financial instruments: ₹1,782.80
  • Other Income: ₹352.91
  • Total Income: ₹17,892.19

Expense Breakdown:

  • Finance Costs: ₹8,092.63
  • Impairment on financial instruments: ₹2,144.15
  • Employee benefits expenses: ₹3,293.72
  • Depreciation, amortisation and impairment: ₹123.26
  • Net loss on fair value changes: ₹10.11
  • Other expenses: ₹3,641.11
  • Total Expenses: ₹17,304.98

Profitability Metrics:

  • Profit Before Exceptional Items and Tax: ₹587.21
  • Exceptional Items: Nil
  • Profit Before Tax: ₹587.21
  • Tax Expense (Deferred tax): ₹146.96
  • Profit for the Period: ₹440.25
  • Other Comprehensive Income: (₹29.27)
  • Total Comprehensive Income: ₹410.98

Earnings Per Share:

  • Basic EPS: ₹2.68
  • Diluted EPS: ₹2.68

Half Year Performance (April-September 2026) (₹ in lakhs)

  • Total Income: ₹33,955.93
  • Total Expenses: ₹32,283.37
  • Profit Before Tax: ₹1,672.56
  • Tax Expense: ₹420.10
  • Profit for the Period: ₹1,252.46
  • Basic EPS: ₹7.61

Comparative Performance

Quarter-over-Quarter (Q2 FY27 vs Q1 FY27):

  • Total Income increased from ₹16,063.74 to ₹17,892.19 (11.4%)
  • Profit before tax decreased from ₹1,085.35 to ₹587.21 (45.9%)
  • Net profit decreased from ₹812.21 to ₹440.25 (45.8%)
  • Impairment costs increased from ₹795.01 to ₹2,144.15 (169.7%)

Year-over-Year (Q2 FY27 vs Q2 FY26):

  • Total Income increased from ₹15,527.82 to ₹17,892.19 (15.2%)
  • Profit before tax increased from ₹371.53 to ₹587.21 (58.1%)
  • Net profit increased from ₹282.72 to ₹440.25 (55.7%)

Balance Sheet Position as at September 30, 2026 (₹ in lakhs)

Assets:

  • Total Assets: ₹4,15,418.17
  • Financial Assets:
  • Cash and cash equivalents: ₹39,471.62
  • Bank Balance other than cash: ₹13,142.40
  • Loans: ₹3,28,546.04
  • Investments: ₹20,884.07
  • Other Financial assets: ₹6,135.64
  • Non-Financial Assets: ₹7,238.40

Liabilities and Equity:

  • Total Liabilities: ₹3,47,143.05
  • Debt Securities: ₹1,37,300.86
  • Borrowings (Other than Debt Securities): ₹1,79,671.69
  • Deposits: ₹15,832.24
  • Subordinated Liabilities: ₹2,577.79
  • Other financial liabilities: ₹5,542.23
  • Total Equity: ₹68,275.12
  • Equity share capital: ₹1,644.75
  • Other equity: ₹66,630.37

Asset Quality Metrics

  • Gross NPA: ₹16,011.25 lakhs (4.81% of advances)
  • Net NPA: ₹9,280.86 lakhs (2.85% of advances net of Stage 3 provision)
  • Provision Coverage Ratio (NPA POS): 50.06%
  • Advances: ₹3,32,562.57 lakhs
  • Advances net of Provision: ₹3,25,832.18 lakhs

Cash Flow Statement for Half Year Ended September 30, 2026 (₹ in lakhs)

  • Net cash from Operating Activities: ₹7,621.93
  • Net cash used in Investing Activities: (₹8,250.77)
  • Net cash from Financing Activities: ₹3,614.27
  • Net Increase in cash and cash equivalents: ₹2,985.43

Key Events and Disclosures

Securitization/Direct Assignment Transactions:

The company completed three transactions during the quarter:

1. Athos Trust 2026 (Securitisation): ₹3,311.82 lakhs, 7,104 accounts, 10% retention

2. HLF MCSL DA SEPT 2026 (DA): ₹4,394.42 lakhs, 6,093 accounts, 10% retention

3. NC MCSL DA Sep 2026 (DA): ₹11,196.05 lakhs, 16,939 accounts, 10% retention

Fraud Incidents:

The company classified 4 incidents of fraud totaling ₹86.06 lakhs due to misappropriation and forgery, for which 100% provision was made.

ESOP Grant:

On July 15, 2026, the Nomination and Remuneration Committee approved grant of 2,68,979 Employee Stock Options at exercise price of ₹222.12 per option. Expense of ₹27.15 lakhs recognized during the quarter.

Provisioning Policy:

The company maintains additional management overlay of ₹2,517 lakhs and proactive additional provisioning buffer of ₹250 lakhs for upcoming ECL model review.

Security Cover:

All secured non-convertible debentures aggregating ₹1,37,300.86 lakhs are fully secured by pari-passu charge on assets with total security cover of 1.23 times.

COVID-19 Resolution Framework:

The company implemented resolution plans for 36,793 personal loan accounts under RBI's Resolution Framework 2.0 with exposure of ₹12,779.10 lakhs before implementation.

Capital Structure

  • Paid-up equity share capital: ₹1,644.75 lakhs (unchanged)
  • Face value per share: ₹10
  • Debt Equity Ratio: 4.91
  • Net Worth: ₹68,275.12 lakhs

Additional Financial Ratios

  • Net Profit Margin: 2.46% for Q2 FY27 (vs 5.06% in Q1 FY27)
  • Total Debts to Total Assets: 0.81

Auditor Review

The financial results were reviewed by M/s. Sundaram & Srinivasan, Chartered Accountants (Firm Registration No. 004207S), who issued an unmodified review report.

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