Key Financial Performance Metrics

  • AUM: ₹4,887 crores, showing 11% quarter-on-quarter growth
  • PAT: ₹12 crores, significantly improved from ₹5 crores in Q4 FY26
  • Net Interest Margin (NIM): Improved to 12.5% from 9.9% in previous quarter
  • Yield: Increased to 24.6% from 22.8% in Q4 FY26
  • Annualized Credit Cost: 2.1% (net credit cost remained negative in Q1 due to stronger recoveries)
  • ROA: Currently at 1%, expected to improve throughout FY27 with target of 3.5% by FY28

Portfolio Quality Metrics

  • X-bucket Collection Efficiency: Sustained at 99.5%
  • 1 to 90 Bucket: Reduced to 1.2% of AUM from 1.3% last quarter
  • GNPA: Improved to 3.6% from 3.8% in March quarter
  • Consolidated NPA: 0.68% against 0.73% for March
  • Provisioning Coverage: Over 80% on NPA

Business Growth Metrics

  • New Member Addition: 61% compared to 46% in March quarter
  • Total Members Added: 1.38 lakh during the quarter compared to 1.1 lakh in March quarter
  • New Portfolio Share: 91% of total portfolio (sourced after April 1, 2025)
  • Recoveries from 90-plus Pool: ₹51 crores collected during the quarter

Funding and Liquidity

  • Borrowings Raised: ₹1,597 crores in Q1 FY27
  • Marginal Cost of Funding: Reduced to 11.3% from 12% last quarter (120 bps decline)
  • Overall Cost of Borrowing: 12.8% compared to 13.2% previous quarter
  • Bank Share in Borrowings: Increased from 44% to 47%
  • CGS Sanctions: ₹545 crores sanctioned under credit guarantee scheme, with ₹200 crores utilized
  • CGS Pricing: Approximately 10% (some sub-10%, some marginally over 10%)
  • Liquidity: Strong at ₹1,316 crores as of June end

Capital Structure

  • Balance Rights Issue: ₹200 crores expected this quarter (₹100 crores from promoter, ₹100 crores from other participants)
  • Capital Adequacy: Company stated they are "holding good" in this area

Geographic Performance

  • Top 5 States Contribution: 60% of total share (Madhya Pradesh, Bihar, Andhra, Telangana, Odisha, West Bengal)
  • State-specific Targets:
  • Tamil Nadu: Current share ₹16 crores against industry of ₹38,000 crores
  • Maharashtra: Current share ₹288 crores against industry of ₹24,000 crores (aiming to double from 1.1% to 2% share)

Strategic Initiatives and Product Development

  • Individual Loan Product: Ready for pilot in 8 branches in Madhya Pradesh with 8-10 dedicated staff
  • Branch Optimization: 100 branches identified for improvement with separate revival team
  • Technology Migration: New LOS platform (Perfios) in UAT stage, expected migration October-December 2026
  • Automation Initiatives: Focus on reducing manual intake and improving efficiency

Management Guidance and Targets

  • FY27 Disbursement Target: ₹6,000-6,500 crores
  • Credit Cost Guidance: 2.5-3% gross, ~2% net (including recoveries)
  • AUM Target: Exit FY27 at ~₹6,000 crores, targeting ₹10,000 crores by March 2028
  • Opex Guidance: ~₹675 crores for FY27 (down from ₹760 crores last year), expected 10% increase next year
  • Recovery Target: ₹150-200 crores from 90-plus pool for FY27 (currently averaging ₹16-18 crores monthly)

Risk Management and Controls

  • El Nino Preparedness: Proactive strategy for new customers in potentially affected districts
  • Underwriting Strengthening: Substantial improvements over last 15 months
  • Collection Processes: Enhanced telecalling (generating ₹30 lakh monthly via QR codes), bot calling implementation

Organizational Updates

  • New Chief Business Officer for South: Recently joined, covering Andhra, Telangana, Tamil Nadu, Karnataka, Kerala
  • Management Structure: Complete complement of 4 Chief Business Officers (North, South, East, West) with state heads
  • Promoter Support: Kedaara Capital supportive with no interference, expected to remain invested for 2-3 years