Key Financial Figures

  • Loan Assets (AUM): INR3,684 crores as of September 30, 2026 (25% sequential growth from INR2,946 crores in Q1 FY27)
  • Loan Sanctions: INR3,098 crores in Q2 FY27 (36-quarter high)
  • Disbursements: INR1,595 crores in Q2 FY27 (19-quarter high)
  • Total Income: INR114 crores for Q2 FY27
  • Profit After Tax: INR44 crores for Q2 FY27
  • Return on Assets: 3.65% annualized
  • Return on Net Worth: 5.64% annualized
  • Interest Spread: 1.18% for Q2 FY27
  • Gross Stage 3 Assets: INR126 crores (down from INR190 crores in Q1 FY27)
  • Net Stage 3 Assets: INR105 crores
  • Undisbursed Sanctions: INR2,500 crores pipeline
  • Budgeted ROA for FY27: 4.16%

Asset Quality Details

Gross Stage 3 assets comprise three accounts:

1. Kundli Manesar: INR124 crores exposure (road project with HSIIDC guarantee), provided INR19 crores (15% provision)

2. Varam Bio: INR2.10 crores exposure, 100% provided

3. Danu Wind Parks: Technically written off this quarter (was previously provided at 75%)

Funding Update

  • Fresh sanction of INR200 crores from Central Bank of India (new lender)
  • INR100 crores already drawn and utilized in September 2026
  • In-principle sanction of INR200 crores from another bank awaiting formal approval
  • Liquidity coverage ratio remains strong with INR600+ crores including HQLA

Business Strategy & Portfolio

  • Focus: Core infrastructure financing with diversified lending across ticket sizes
  • Renewable Energy Exposure: ~45% of loan book
  • Target Sectors: Renewable energy, roads, digital infrastructure, CBG, operating thermal
  • Average Ticket Size: INR100-150 crores per account
  • Target Loan Book: INR5,000 crores by March 2027
  • Growth Expectation: Minimum 25% annually in coming years

Operational Highlights

  • Business momentum reversed after 10 quarters of decline
  • Adopting client-focused, execution-oriented approach with faster turnaround
  • Maintaining disciplined underwriting and portfolio monitoring
  • Deepening existing client relationships while developing new ones

Q&A Key Points

  • NPA Resolution: Management believes INR105 crores net NPA could be resolved within FY27
  • Cost of Borrowing: Current weighted average 9.27%, expected to improve gradually
  • Leverage Target: Optimum leverage of 4-4.5x expected in 3-4 years
  • NIM Outlook: Expected to remain above 2% long-term, currently supported by high equity
  • Rating Upgrade: Discussions with rating agencies planned for next quarter
  • Danu Wind Recovery: IBC process initiated, recovery expected in next financial year
  • Disinvestment: Nodal officer appointed for data sharing, process ongoing

Forward-looking Statements

  • Portfolio building phase may temporarily compress spread metrics
  • Expect improved performance metrics in coming quarters
  • Focus on converting existing pipeline and sustaining growth momentum
  • Targeting consistent growth with prudent risk management