Financial Performance Highlights

Assets Under Management (AUM): ₹67,074 million as of June 30, 2026, representing 28% year-on-year growth.

Disbursements: Record quarterly disbursement of ₹17,309 million in Q1 FY2027, showing 128% year-on-year growth.

Income: Total income increased by 19% year-on-year to ₹2,603 million. Net interest income stood at ₹1,447 million with net interest margin maintained at 6.6%.

Profitability: Profit after tax of ₹613 million, up 30% year-on-year. Return on assets for the quarter stood at 3.6% while return on equity was 13.4%.

Asset Quality: Gross NPA stood at 0.70% while net NPA stood at 0.49% as of June 30, 2026. Collection efficiency during the quarter remained strong at 97.5%.

Capital Position: Net worth increased to ₹18,298 million with capital adequacy at 33.1%. Debt-to-equity ratio stood at 2.61x.

Funding and Liability Management

Total borrowings as of quarter end stood at ₹48,467 million supported by a diversified mix of banks, financial institutions and capital market instruments. Cost of borrowing declined to 10.1%, representing an improvement of 64 basis points year-on-year.

The company has approved and is launching tranche 1 of public issue of non-convertible debentures aggregating up to ₹300 Crores under a ₹900 Crores shelf limit, scheduled to open on August 7, 2026.

Operational Metrics and Strategic Pillars

Distribution Network: The network comprised 5,995 touch points spread across 23 states as of Q1 FY2027, representing significant expansion from 5,299 touch points in previous quarters. The business correspondent franchise crossed USD 1 billion in gross transaction value.

Technology and AI Implementation: The company processed approximately 180,000 customer onboarding applications (vs 160,000 in Q4 FY2026), completed approximately 500,000 voice-to-data convergence (vs 350,000 previous quarter), and AI-enabled outbound engagement increased to approximately 200,000 calls per day (from 150,000 calls). Number of AI bots expanded from 7 to 18.

Product Diversification: The company has expanded into adjacent categories including mobility solutions, industrial equipment, medical equipment, agriculture equipment, and alternative fuel opportunities. Six new product lines were added in the last quarter.

Regulatory Environment Discussion

Management discussed the RBI circular increasing collateral-free lending threshold for micro and small enterprises to ₹20 lakhs, viewing it as a positive development for financial inclusion. This is expected to encourage greater adoption of cash flow-based lending and technology-led credit assessment models.

Three-Year Growth Ambition

The company shared its ambition to approximately double AUM, income and profitability over the next 3 years while maintaining strong asset quality, healthy returns and robust capital position.

Q&A Session Highlights

Co-lending Status: Co-lending tie-up with State Bank of India remains at status quo level, awaiting compliance completion at bank side before disbursements can accelerate.

Macro Impact: Management stated that most borrowers are microenterprises and small traders, hence impact of macro events like Iran war has been relatively limited. Sequential increase in loan loss provisions noted but still below 1% level.

Cost Management: Cost-to-income ratio currently at about 40%. Short-term expectations of higher ratios due to AI transformation investments, with normalization expected in medium-to-long term.

Leverage Strategy: Internal leverage cap considered comfortable at 3.5x (vs regulatory allowance of 7x). Current 2.61x ratio includes non-converted foreign currency convertible bonds of $44 million due for conversion.

Promoter Stake: Promoters increased stake by approximately 5% in Q1 FY2027, demonstrating commitment and growth conviction.

Portfolio Mix: Current AUM mix includes 23% from food and hospitality, 15% from agri and allied agri services, 16% from street vendors. Company maintains prudent risk assessment with no industry exposure exceeding 25%.

Management Participants

Mr. Santanu Agarwal - Deputy Managing Director (primary speaker)

Mr. Harish Singh - CFO (unable to attend due to personal exigency)

Moderated by Arihant Capital Markets Limited