# 1. Financial Performance ## A. Key Figures * **AUM:** **₹1,713 Cr** as of March 31, 2026 (+29% YoY) * **Disbursements:** **₹977 Cr** FY26 (+16% YoY) * **Net Interest Income (NII):** **₹50 Cr** Q4 (+34%) · **₹162 Cr** FY26 (+24%) * **Profit After Tax (PAT):** **₹11 Cr** Q4 (+39%) · **₹45 Cr** FY26 (+20%) * **Margins & Yields:** **13.63%** NIM · **22.85%** Gross Yield · **10.64%** Avg. Borrowing Cost * **Return Metrics:** **11.65%** ROE (+140 bps) · **2.63%** ROA (+5 bps) ## B. AUM & Disbursements * **Network-Led Growth:** Robust AUM expansion driven by high 2-Wheeler demand and dealer network scaling; recent expansions are expected to catalyze significant momentum in the upcoming year. * **Stable Productivity:** Despite rapid network growth, individual dealer productivity remains consistent, providing a stable foundation for volume increases. ## C. Profitability & Margins * **Yield Optimization:** Strong gross yields supported by a high-yielding product mix, specifically **used 2-wheelers** which command yields between **24% to 26%**. * **Improving Returns:** Bottom-line growth outpaced top-line in Q4, contributing to a healthy year-over-year uptick in both Return on Equity and Return on Assets. ## D. Borrowing Cost Trends * **Cost Compression:** Average borrowing costs trended lower due to an improved credit profile and strategic transactions, including a **9.75% PTC** and a **₹100 Cr SBI facility** at **10%**. * **Liability Diversification:** Successfully raised **₹1,265 Cr** in FY26 across a diverse lender base of 38 institutions, including a significant **₹365 Cr** via NCDs. * **Future Outlook:** Management targets a **10.50%** ceiling for new borrowings and is negotiating further **20-50 bps** reductions based on performance milestones. ## E. Capital Adequacy * **Solvency & Ratings:** Maintained a robust capital position with a **24.46%** adequacy ratio, underpinned by positive outlooks from rating agencies (CARE BBB+). * **Leverage Discipline:** Management remains committed to a conservative balance sheet, maintaining a debt-to-equity threshold of **below 4**. --- # 2. Loan Book & Asset Quality ## A. Key Figures * **Portfolio Composition:** **91.84%** MFL business · **2.62%** Co-lending · **4.43%** Direct Assignment · **1.11%** Business Correspondent * **Product Mix:** **84.5%** 2-Wheelers · **4.93%** Small Business · **4.70%** Top-up loans · **3.28%** 3-Wheelers * **Asset Quality:** **3.33%** Gross NPA (vs 3.38% QoQ) · **2.46%** Net NPA (vs 2.57% QoQ) * **Asset Classification:** **₹1,601 Cr** Stage-1 (93.49%) · **₹54 Cr** Stage-2 (3.18%) · **₹57 Cr** Stage-3 (3.33%) ## B. Portfolio Mix & Strategy * **Secured Dominance:** Over **95%** of the current portfolio is classified as secure, primarily anchored by the 2-Wheeler segment. * **Strategic Diversification:** Management targets a long-term shift in mix, reducing 2-Wheeler concentration to **60%-65%** while scaling 3-Wheelers, used cars, and MSME LAP. * **EV Segment Outperformance:** The electric 2-Wheeler book demonstrates superior credit quality with a default rate of **less than 1%** after 42 months of operations. ## C. NPA & Credit Loss Profile * **Prudent Buffering:** Management utilized strong profitability to bolster Stage-3 provisions, maintaining a buffer significantly above regulatory requirements to hedge against unforeseen volatility. [5, 7] * **Stable Credit Costs:** Annual credit losses remained resilient at **1.12%** (a marginal **10 bps** increase), despite broader macroeconomic headwinds and rising fuel costs. [10, 16] * **OEM Risk Mitigation:** Strategic partnerships, such as with TVS, provide upfront subventions and credit loss support, further insulating the bottom line. ## D. LTV & Underwriting Discipline * **Risk-Adjusted Expansion:** In new geographies (UP/MP), the company is intentionally sacrificing yield—lending at **18%-19% IRR**—to capture higher-quality borrowers while local collection infrastructure matures. * **Conservative Leverage:** Risk is mitigated through high borrower equity, requiring **20%-25%** down payments on new vehicles and maintaining strict LTVs of **50%-55%** for used assets. [10, 13] * **NTC Guardrails:** Exposure to "New-to-Customer" borrowers is capped at **35%-40%** of the portfolio, with tightened LTVs of **70%-75%** for this segment. * **Asset Quality Focus:** Underwriting avoids low-cost, unregistered EVs, focusing exclusively on reputable OEMs with price points averaging **₹1,25,000** to ensure collateral viability. --- # 3. Product & Segment Performance ## A. Key Figures * **Portfolio Mix (2-Wheelers):** **84%** Current (vs. 97% three years ago) · **65%** 3-Year Target * **Average Ticket Size (2W):** **₹80,000 - ₹85,000** New · **₹55,000 - ₹60,000** Used * **Average Ticket Size (Other):** **₹4 Lakh** Used Cars · **₹5 Lakh - ₹20 Lakh** MSME LAP * **EV Penetration:** **7% - 8%** of 2W Portfolio · **80%** of 3W Portfolio (₹40 Cr of ₹50 Cr) * **MSME LAP Yield:** **18% - 19%** Gross Yield ## B. Two-Wheeler Dominance & Diversification * **Strategic Portfolio Rebalancing:** Management is aggressively reducing 2W concentration to pivot toward a more diversified lending mix over the next three years. * **Mass-Market Focus:** Vehicle financing remains anchored in the essential commuter segment (100cc–125cc), characterized by affordable monthly EMIs of **₹3,500 to ₹4,000**. * **Sector Tailwinds:** The 2W financing industry maintains robust momentum, showing double-digit growth through early Q1 FY25 despite broader market volatility. ## C. MSME & LAP Expansion * **High-Yield Secured Growth:** The newly launched MSME LAP segment offers attractive risk-adjusted returns with high gross yields and historically lower credit losses compared to unsecured books. * **Maturity Outlook:** Management expects LAP to become a mature, foundational product by next year, serving as a primary driver for geographical and product diversification. ## D. EV Financing Strategy * **Aggressive EV Pivot:** The company is prioritizing EV financing through lower lending rates and strategic tie-ups with established OEMs like TVS, Bajaj, and Ather. * **3W Segment Leadership:** Financing is notably more aggressive in the 3-wheeler category, where the vast majority of the portfolio is already comprised of electric vehicles. ## E. Used Vehicle Growth * **Specialized Operations:** To manage the significantly higher ticket sizes in the used car segment, the company has deployed dedicated sales, credit, and collection verticals distinct from the 2W business. --- # 4. Distribution & Geography Mix ## A. Key Figures * **Customer Base:** **28,500** New Additions · **2.20 Lakh+** Total Live Customers * **Geographic Concentration:** **40%** Maharashtra · **27%** Gujarat · **15%** Rajasthan * **Operational Reach:** **130** Locations · **6** States ## B. Dealer Network Expansion * **Strategic Pivot to Used Vehicles:** Rapid network growth driven by the aggressive onboarding of dealers for the used two-wheeler segment, which exhibits a superior credit loss profile of only **1% to 2%**. * **Segment Mix:** While the footprint is currently dominated by new vehicle dealerships, the used segment is scaling quickly to diversify the portfolio. ## C. State-wise Concentration * **Successful De-risking:** Significant reduction in geographic concentration as the business shifts away from a historical reliance on Maharashtra toward a more balanced contribution from Gujarat and Rajasthan. * **Northern Expansion:** Active footprint expansion and customer acquisition momentum across Uttar Pradesh, Madhya Pradesh, and Rajasthan. ## D. Branch Infrastructure * **New Product Launch:** Infrastructure and specialized personnel (RAs, Business Managers, BCMs) are now in place to support new product disbursements, initially centered in **Mumbai and Pune**. --- # 5. Operations & Technology ## A. Key Figures * **Sanction Speed:** **60%** within one minute · **92%** within one day * **Customer Profile:** **50%** Salaried / **50%** Self-Employed · **92%** Homeowners * **Capital Raised:** **₹420 Cr** Total (Quarterly) · **₹100 Cr** SBI Term Loan · **₹50 Cr** NCD ## B. AI & Collections Efficiency * **Data-Driven Collections:** Deployment of a dedicated AI team to optimize collection efficiency through trend identification and intelligent caller data distribution. * **Dynamic Pricing Model:** Leveraging machine learning to implement risk-based pricing, offering reduced rates for low-risk profiles and incentives for high-quality dealer sourcing. * **Asset Performance:** EV 2-wheeler collections are currently outperforming ICE segments, attributed to a more educated and economy-focused buyer demographic. ## C. Turnaround Time (TAT) Metrics * **Industry-Leading Processing:** Maintained rapid sanctioning capabilities for core products, with a majority of loans approved almost instantaneously. * **Vehicle Financing Optimization:** Active initiatives underway to compress vehicle financing TAT, which currently requires **3 hours** due to mandatory physical valuation processes. ## D. Strategic Partnerships & Liability Management * **TVS Motor Alliance:** Established an All-India MOU with TVS Motor Company, successfully onboarding **70 dealers** to accelerate penetration in the 3-wheeler financing segment. * **EV Risk Mitigation:** Secured unique credit enhancements via MOUs with EV OEMs, who provide a **50% principal cover** in the event of an NPA or repossession. * **Lender Diversification:** Strengthened the liability franchise by onboarding new partners including Protium Finance, Godrej Finance, and Godrej Housing Finance. * **Equity Clarification:** Management confirmed that while the TVS partnership is deep at the operational level, there are no discussions regarding an equity-level investment. --- # 6. Regulatory & Credit Risks ## A. Key Figures * **Small Business Loan Exposure:** **<5%** of total AUM * **EV 3-Wheeler Capacity:** **4-person** permit vs. **10-12 person** actual usage ## B. Asset Depreciation & Operational Risks * **Accelerated Asset Erosion:** The EV 3-Wheeler segment faces high risk due to rapid vehicle depreciation triggered by chronic overloading and a volatile customer profile. * **Strategic Retrenchment:** Management is maintaining a cautious, slow-growth stance in the 3-wheeler category, limiting partnerships to only select, renowned OEMs to mitigate high loss-on-surrender. ## C. Credit Policy & Geopolitical Sensitivity * **Tightened Underwriting:** Rejection ratios for small business loans have been increased as a defensive measure against geopolitical uncertainty. * **Portfolio Insulation:** Despite stricter credit policies, the overall impact on the balance sheet is contained as the affected product represents a marginal portion of the total AUM. --- # 7. Guidance & Outlook ## A. Key Figures * **AUM Growth Target:** **25% to 30%** annually · **30%** CAGR on incremental AUM * **Year-End AUM Guidance:** **₹2,300 Cr** to **₹2,400 Cr** * **Current AUM Base:** **₹1,718 Cr** * **Product Mix Target:** **60%-65%** 2-Wheeler concentration (3-year horizon) ## B. AUM Growth & Product Strategy * **Aggressive Scaling:** Management expects to sustain robust double-digit momentum, leveraging the **CBO model** and team strengthening to outpace industry averages. * **EV & Segment Leadership:** Strategy prioritizes higher-than-market penetration in **EV financing** and continued dominance in the 2-wheeler segment following six months of positive trends. * **Portfolio Diversification:** Planned shift in product mix will see a gradual reduction in 2-wheeler concentration as the company scales non-core offerings over the next three years. ## C. Fund Raising Plans * **Strategic Deferral:** Capital raise timeline shifted to **Q3 or Q4** to navigate geopolitical volatility and avoid dilutive valuations. * **Valuation Benchmarking:** Management is targeting a share price recovery to the **₹135–₹150** range before proceeding with the fundraise. ## D. Geographic Expansion Roadmap * **New Market Entry:** Operations are slated to commence in **Karnataka** during Q2, with **West Bengal** identified as a high-priority hub for year-end or next-fiscal expansion. * **Deepening Penetration:** Growth focus remains on under-penetrated regions including **Uttar Pradesh** (1% market share) and **Madhya Pradesh** (3% market share). * **MSME Footprint:** Segment-specific expansion will see the branch network extend into **Nasik and Ahmedabad** in the upcoming quarter.