Financial Performance Highlights

Consolidated Performance:

  • Assets Under Management (AUM): INR15,935 crores, growing 27% YoY and 5% sequentially
  • Disbursements: INR3,495 crores, up 56% YoY (highest first quarter disbursement in company history)
  • Total Income: INR827 crores, up 22% YoY
  • Profit After Tax: INR123 crores, up 172% YoY
  • Pre-Provision Operating Profit (PPOP): INR267 crores, up 33% YoY

Stand-alone Performance:

  • AUM: INR13,312 crores, up 22% YoY
  • Disbursements: INR3,008 crores, up 46% YoY
  • Total Income: INR734 crores, up 21% YoY
  • PAT: INR120 crores, up 182% YoY
  • PPOP: INR258 crores, up 36% YoY

Margins and Efficiency Metrics

  • Stand-alone NIM: 14.36% (improved from 13.16% in Q4 FY26)
  • Gross Yield: 22.44%
  • Cost of Funds: 8.08%
  • Operating Expense Ratio: 6.33% (improved from 6.98% in Q4)
  • Cost to Income: 44.49% (improved from 48.91% YoY)
  • AUM per Loan Officer: increased 29% YoY
  • Return on Assets: 3.55%
  • Return on Equity: 15.10%

Asset Quality

  • Gross NPA: 2.2% (improved from 3.7% YoY and 3.1% in March 2026)
  • Net NPA: 0.3% (down from 0.9% YoY)
  • GNPA in absolute terms: INR219 crores
  • X-bucket collection efficiency: 99.9%
  • Stage 3 coverage: 85% (improved from 73% in March)
  • Overall provision coverage ratio: 115%
  • Slippages for quarter: INR49 crores
  • Write-offs for quarter: INR127 crores

Credit Costs and Provisions

  • Reported credit cost: 3.06% (improvement of over 175 bps YoY)
  • Management overlay buffer: INR36 crores
  • Credit cost excluding overlay: 1.97%
  • On-book provisions: INR250 crores against RBI requirement of INR152 crores
  • Adjusted ROA (excluding buffer): 4.34%
  • Adjusted ROE (excluding buffer): 18.46%

Diversification Business Update

Non-MFI Portfolio: 19% of consolidated AUM (target: 30% by 2030)

Satin Finserv:

  • AUM: INR1,360 crores, up 134% YoY and 29% sequentially
  • 121 branches across 14 states
  • CRAR: 27.1%

Green Finance Book:

  • Total: INR624 crores
  • Q1 Disbursements: INR294 crores across 50 loans
  • 45% aligned to clean mobility and renewable energy

Satin Housing Finance:

  • AUM: INR1,263 crores, up 31% YoY
  • 57 branches across 22 states
  • CRAR: 59.8%

Technology Businesses:

  • Satin Technologies: First quarter with paying HRMS customers
  • QTrino Labs: Achieved first customer revenue milestone
  • Core banking platform completed development, targeted Q2 FY27 go-live

Satin Growth Alternatives: Progressing towards first close of Category 2 AIF with first deployment expected next quarter

Capital and Funding

  • Raised approximately INR3,000 crores during quarter through diversified instruments
  • INR285 crores subordinated debt, taking subordinated liabilities to INR497 crores
  • Capital Adequacy Ratio: 26.74% (up from 25.39% in March)
  • Undrawn sanctions: INR2,600 crores
  • Secured INR2,000 crores direct assignment sanction limit from public sector bank
  • Marginal cost of borrowing: reduced 37 bps YoY to 10.52%
  • 77 active lenders with top 10 accounting for 52% of borrowing
  • Net worth: INR3,243 crores
  • Shareholders approved promoter infusion of INR100 crores at approximately 17% premium to minimum issue price

Operational Metrics

  • Clients served: 34 lakh across 2,041 branches and 3.9 lakh centers
  • Employees: 18,518
  • Geographic presence: 112,000+ villages across nearly 590 districts
  • Commenced operations in Kerala in June 2026
  • Added 41 branches at stand-alone level during quarter
  • Field leadership team (200 regional/zonal managers): zero attrition

Risk Factors and Buffers

Assam Flood Impact:

  • 3 affected districts: Jorhat, Sivasagar, and Charaideo
  • 44,000 borrowers affected representing INR149.83 crores portfolio outstanding
  • INR96.95 crores covered under natural catastrophe insurance
  • Represents approximately 5% of Assam portfolio
  • Financial impact significantly mitigated through insurance coverage

Management Overlay Rationale: Buffer created during up cycle to provide cushion against potential shocks including monsoon outlook and West Asia situation

Guidance for FY27

  • Consolidated AUM growth: 20-25% (implying INR18,200-18,900 crores by March 2027)
  • Stand-alone credit cost: 3-3.5% on reported basis (inclusive of buffers)
  • Stand-alone return on assets: 3.5-4% on reported basis
  • Guidance to be reviewed at half year after monsoon assessment
  • Long-term target: INR32,000 crores consolidated AUM by 2030 with 30% from non-microfinance business

Q&A Highlights

  • Management overlay buffer amount will depend on macroeconomic and field-level developments, no fixed target
  • Surplus liquidity drag on NIM: approximately 0.15-0.20% at quarter-end, 0.05% during entire quarter
  • Direct assignment income: target 20-22% of stand-alone AUM on yearly basis
  • New branches typically become profitable after reaching 1,000 customers (approximately 9 months)
  • Company has not opted for CGMFU scheme as GNPA below threshold requirement
  • All ECB transactions (INR1,573 crores) fully hedged with minimal net impact