Transwarranty Finance Limited (TFL) submitted a press release to the National Stock Exchange of India Limited and BSE Limited regarding its unaudited financial results for the quarter and half year ended September 30, 2026. The intimation was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Financial Performance Highlights for Q2FY27

Disbursement Metrics:

  • Q2FY27 disbursement: ₹15.20 crore (184% YoY growth)
  • Cumulative disbursement until September 30, 2026: ₹136.54 crore
  • Number of borrowers served: approximately 85,400

Assets Under Management:

  • Digital loans AUM: ₹21.45 crore (2145.42 lacs), up 132.04% YoY
  • Number of loans disbursed in Q2FY27: 7,403 loans amounting to ₹15.20 crore (1519.56 lacs)

Income and Profitability:

  • Net Interest Income (including fees): ₹1.05 crore (104.78 lacs), up 155.32% YoY
  • Net Interest Margin (including fees): 19.83% in Q2FY27 vs 16.71% in Q2FY26
  • Pre-Provision Operating Profit (PPOP): ₹0.70 lakh (7.03 lacs) vs loss of ₹-58.14 lakhs in Q2FY26, up 112.09% YoY
  • Profit After Tax (PAT): ₹0.81 lakh (8.05 lacs) in Q2FY27 vs loss of ₹-86.68 lakhs in Q2FY26

Asset Quality Indicators:

  • Gross NPA: 0.77% in Q2FY27 vs 8.76% in Q2FY26
  • Net NPA: 0% in Q2FY27 with 100% provision against all NPAs
  • Credit cost as percentage to average AUM: -1.30% in Q2FY27 vs 7.13% in Q2FY26
  • SMA 0 Assets (digital loans): 92.70% in Q2FY27 vs 85.91% in Q2FY26

Asset Quality Breakdown (in lacs):

| Particulars | Q2FY27 Amount | Q2FY27 % | Q2FY26 Amount | Q2FY26 % |

| SMA 0 (0 to 30 DPD) | 1988.84 | 92.70% | 880.92 | 85.91% |

| SMA 1 (31 to 60 DPD) | 75.67 | 3.53% | 32.03 | 3.12% |

| SMA 2 (61 to 90 DPD) | 64.45 | 3.00% | 22.66 | 2.21% |

| NPA (90 + DPD) | 16.46 | 0.77% | 89.83 | 8.76% |

| Total AUM | 2145.42 | 100.00% | 1025.44 | 100.00% |

Capital Structure:

  • Leverage ratio: 0.90x as on September 30, 2026
  • Company indicates sufficient capital adequacy as per regulatory norms with room for expanding leverage

Management Commentary

Mr. Kumar Nair, Managing Director, stated that the company is at an inflection point after pivoting to digital lending business through their in-house technology platform "Oroboro". The company has increased focus on providing Smart Phone Finance in Tier 2 & 3 markets using technology-led underwriting. The business model follows embedded finance through a pan-India network of Strategic Partners. The company is actively expanding its lending portfolio toward higher-yield, lower-risk segments and is cautiously optimistic about sustaining and improving profitability.

Company Background

Transwarranty Finance Limited is a non-deposit taking non-banking finance company registered with the Reserve Bank of India (RBI). The company started operations nearly three decades back and is listed on both BSE and NSE. The company has successfully pivoted into digital lending, providing small ticket, small tenure digital loans with AUM of ₹21.45 crore as on September 30, 2026. The company describes itself as a fast-growing fintech housed inside a regulated NBFC.

Growth Targets

Company has set a 2x AUM target for FY2027, accelerating its growth journey.