# 1. Financial Performance ## A. Key Figures * **Total Disbursements:** **84% YoY growth** · **5% QoQ growth** (Q3FY26) * Net Interest Income: **₹1,080 Cr** (Q3FY26, +19.3% QoQ) * Net Interest Margin: 8.62% (Q3FY26) (+22 bps QoQ) * ROA: 1.2% (Q3FY26) * Pre-Provision Operating Profit: ₹528 Cr (Q3FY26, +36.5% QoQ) * **Profit After Tax:** **₹150 Cr** (Q3FY26, +102% QoQ, +702% YoY) * **Liquidity Coverage Ratio:** **156%** (Dec 31, 2025) * **Surplus Liquidity:** **₹6,488 Cr** (Dec 31, 2025) * Capital Adequacy Ratio: 18.17% (Tier 1: 17.15%) * Debt-to-Equity Ratio: 4.25x ## B. Revenue & Disbursements * **Robust Disbursement Growth:** Strong YoY and sequential disbursement momentum, with new products contributing significantly to the **₹950 Cr monthly run rate** in December. * **Income Resilience:** Net interest income growth achieved despite stable asset quality, supported by a **56% secured asset book**. ## C. Net Interest Margin * **Margin Expansion:** Net interest margin improved meaningfully QoQ, reflecting favorable income mix and operating leverage. ## D. Profitability & ROA * **ROA Trajectory:** ROA reached 2%, driven by disciplined risk calibration and new product performance, as part of a deliberate strategy to compound intrinsic value. * **Earnings Acceleration:** Profit after tax surged QoQ and YoY, fueled by AUM growth and returns from strategic investments in new business lines. ## E. Balance Sheet Strength * **Capital & Liquidity Cushion:** Strong capital adequacy and **156% liquidity coverage ratio** provide ample flexibility for growth, with surplus liquidity exceeding **₹6,400 Cr**. * **Leverage Headroom:** Debt-to-equity ratio of 25x indicates capacity to scale leverage prudently. --- # 2. Loan Book & AUM Growth ## A. Key Figures * AUM: ₹55,017 Cr (Dec 2025) (+77.6% YoY, +15.3% QoQ) * **India Loan Growth:** **~11% YoY** (outstanding loans) * **New Product Disbursements:** **20%** of total disbursements (Q3FY26) (+3 pp QoQ) · **25% QoQ growth** in disbursements * **Commercial AUM:** **₹33,700 Cr** (72% secured) ## B. Total AUM Trends * **Broad-Based Expansion:** AUM growth reflects sustained momentum in core segments, with commercial vehicle and gold loan portfolios showing strong traction. * **Resilient Growth Environment:** India’s double-digit loan book expansion supported by favorable macroeconomic conditions and rising credit demand. ## C. New Product Contribution * **Accelerating Adoption:** New products now represent a fifth of quarterly disbursements, with robust QoQ volume growth signaling increasing market acceptance. * **Diversified Pipeline:** Management highlights strong performance across personal loans, consumer durables, CV financing, and gold loans as key drivers of new product growth. ## D. Commercial AUM Mix * **Dominant Share & High Security:** Commercial AUM accounts for a significant majority of total AUM, with robust growth and a high degree of collateralization enhancing portfolio resilience. --- # 3. Funding & Liability Mix ## A. Key Figures * **NCD Contribution:** **33%** of total borrowings (Dec 2025) (+26 ppt from Mar 2025) * **Long-term Borrowings:** **84%** of total borrowings (+4 ppt YoY) * **NCD Proceeds:** **₹4,500 Cr** raised in Q3 FY26 · **₹12,330 Cr** in 9M FY26 ## B. Cost of Borrowing * **Declining Funding Costs:** Cost of borrowing improved significantly in H1 FY26, supported by a favorable interest rate environment and strategic shift toward longer-term, fixed-rate NCDs. * **Liability Structure Optimization:** Increased long-term borrowing mix enhances maturity profile stability amid rising AUM and funding needs. * **Flexible Mix Management:** ~50% variable-rate exposure and **9% short-tenor capital market borrowings** (avg. 3 months) allow active cost optimization. ## C. NCD Funding Share * **Strategic NCD Target:** Company intends to sustain NCDs at **30%–35%** of borrowings, reflecting disciplined liability management under ALCO oversight. * **Investor Base Diversification:** Shift to NCDs has broadened funding sources to include mutual funds, insurers, banks, corporates, and pension funds. --- # 4. Product & Segment Performance ## A. Key Figures * **Gold Loan Disbursements:** ₹110 Cr (Sep-25) → ₹207 Cr (Dec-25) (+~88% in 3 months) * **CV Disbursements:** ₹100 Cr/month avg in Q3FY26 (+35% QoQ), >70% from used CVs * **Prime Personal Loan Disbursements:** ₹430 Cr/month avg in Q3FY26 * **LAP AUM:** ₹15,100 Cr (largest commercial contributor) * **Unsecured Business & Professional Loans AUM:** ₹8,000 Cr * **Mid-Market AUM:** ₹9,400 Cr * **Medical Equipment & Machine Loan AUM:** ₹660 Cr * **Education Loan Disbursements:** ₹118 Cr (Dec-25) * **Consumer Durable Disbursements:** ₹118 Cr to 54,000 customers (Oct-25) ## B. Gold Loan Growth * **Strategic Portfolio Shift:** Lower-risk products, including gold loans, are targeted to represent **50–60% of total portfolio**, enhancing risk profile and driving **growing ROAs**. * **Rapid Scaling & Focus:** Gold loan disbursements nearly doubled in three months, driven by strong branch productivity and a **state-by-state rollout in western and central India**, with expansion plans progressing into Karnataka and Odisha. * **Tier-II/III Franchise Building:** **95% of gold loan branches** are in Tier-II/III markets, serving as multi-product hubs; despite focus on gold loans, cross-selling is permitted and early traction is encouraging. * **Resilient Asset Quality:** **No gold loan accounts exceeded 30 DPD as of Q3FY26**, underscoring portfolio resilience and disciplined underwriting. * **Distribution Control:** Investment in an **in-house direct channel** strengthens reach and oversight, supporting long-term franchise development. ## C. CV & LAP Disbursements * **Commercial Vehicle Momentum:** CV business achieved **35% QoQ growth** with ₹100 Cr/month disbursements, fueled by **used CV financing (70%+ share)** and rapid channel expansion to **700+ partners across 55 locations**. * **LAP as Anchor Segment:** LAP remains the largest commercial AUM contributor with **strong collateral coverage (45–50% LTV)** and high-quality borrowers (**85% with bureau score ≥750**). * **Diversified Commercial Portfolio:** 13 commercial products span tenure buckets, with mid-market, unsecured, and equipment finance segments showing substantial growth and structural depth. * **In-House Channel Gains Traction:** Direct distribution now drives **22% of commercial retail disbursements**, nine months post-launch, signaling growing control and scalability. * **Delinquency Improvement:** Pre-owned car loans saw **15% QoQ and 30% YoY reduction in 6-MOB 30+ delinquency**, reflecting improved underwriting precision. ## D. Education & Personal Loans * **Personal Loan Strength:** Prime personal loan business achieved **₹430 Cr/month in disbursements** in Q3FY26, supported by high-quality borrowers (**70% with bureau score ≥750, 75% linked to top corporates**) and stable delinquency at **4% (6-MOB 30+)**. * **Education Loan Expansion:** Network expanded to **325+ consultants**, supporting **16,000+ files**, with disbursements reaching **₹118 Cr in December 2025**; targeting **500+ consultants by FY26 end**. * **Consumer Durable Dual Model:** Operates **10,000+ outlets** combining durable sales and digital lending, with **90% dealer presence in Tier-II/III cities** and **average loan size of ₹28,000**, enhancing team productivity and yield. * **Digital & AI Leverage:** **Multilingual AI agents** (voice in 6, chatbots in 14 languages) boost customer acquisition, while **PFIN EMI card** with pre-approved limits drives repeat usage and stickiness. * **Balanced Growth Strategy:** Focus on **instant consumer loans** mixed with longer-tenure products to optimize ROA and portfolio value proposition. --- # 5. Credit Quality & Risk Metrics ## A. Key Figures * GNPA: 1.51% Q3FY26 (↓8 bps QoQ) · 1.59% Q2FY26 * **Stage-1 Assets:** **97.4%** Q3FY26 (↑30 bps QoQ) · **97.1%** Q2FY26 * Stage-3 Assets: **1.51%** Q3FY26 (↓80 bps QoQ) · **1.59%** Q2FY26 * Net NPA: 0.80% Q3FY26 (↓100 bps QoQ) · 0.81% Q2FY26 * **6-MOB 30+ Delinquency (LAP):** **sub 0.05%** Q3FY26 * **3-MOB 30+ Delinquency (Instant Loans):** **70% improvement** YoY Q3FY26 ## B. GNPA & Stage Migration * **Sustained Asset Quality Improvement:** Sequential decline in GNPA and Stage-3 assets, with meaningful shift toward higher-quality Stage-1 exposures, reflecting effective risk calibration and portfolio cleanup. * **Risk-Calibrated Growth Strategy:** Focus on low-risk salaried segments with **bureau scores >750** and income >₹75,000 reinforces underwriting discipline and structural credit resilience. * **AI-Driven Underwriting Scale-Up:** Full adoption of **Credit AI** in personal loans and expansion via **'Saarthi'** platform to enhance portfolio-level risk intelligence and underwriter productivity. * **Stable Secured Asset Base:** On-book secured mix maintained at **56%**, supporting collateral-backed risk mitigation across the portfolio. ## C. Delinquency Trends * **Strong Early Vintage Performance:** Leading delinquency indicators show consistent improvement, including **6-MOB 30+ delinquency trending down for four consecutive quarters** and clean LAP vintages. * **Data-Rich, Multi-Source Underwriting:** Over **50 AI/ML models** leverage **5,000+ features** and real-time monitoring, enabling dynamic cohort selection and precise PD calibration. * **Enhanced Risk Transparency:** Introduction of **6-MOB early risk indicator** and multi-year vintage disclosures provide deeper insight into underwriting efficacy and forward-looking credit trends. ## D. Write-off Policy * **Product-Specific Write-off Framework:** Differentiated DPD thresholds (**180 for unsecured**, **365 for vehicle-secured**, **730 for LAP**) applied with case-by-case discretion, aligning with industry standards and collateral dynamics. * **Credit Costs Normalizing:** Quarterly credit cost declined to **6.2%** in Q3FY26, with most products in **4–5% range**, indicating stabilization under business-as-usual conditions. --- # 6. Operational Leverage & Costs ## A. Key Figures * Opex-to-AUM Ratio: 4.41% in Q3FY26 (↓40 bps QoQ) * **AI Projects:** **30 live** out of 57 total * **Disbursements:** **28%** of prime personal loans fully straight-through in Q3FY26 ## B. Opex to AUM Ratio * **Operating Leverage Accelerating:** Structural cost advantages are materializing from prior fixed investments in distribution, tech, and multi-product infrastructure, enabling scale without proportional cost increases. * **Efficiency Gains Embedded:** Declining marginal costs across underwriting, collections, and branch networks reflect a scalable operating platform absorbing incremental AUM growth. * **Tech-Driven Cost Optimization:** AI and digital enhancements—particularly in marTech, SEO, and server-to-server integrations—are improving campaign efficiency, reducing acquisition costs, and boosting online visibility. * **Platform Maturity Signals Inflection:** Management confirms the bulk of strategic investments are complete, positioning the business for sustained operating leverage in new segments. ## C. Cost to Income Trend * **Favorable Mix Shift Underway:** Higher-margin products—Gold, Education, Personal Loans, and LAP—are targeted to represent **50%–60% of AUM**, driving longer tenors, predictable cash flows, and improved cost-to-income dynamics. * **Management Confidence in Margin Trajectory:** Executives affirm continued improvement in Opex-to-income, with cost-to-income expected to follow a similar positive trend, underpinned by operating leverage. ## D. Scalable Infrastructure * **AI Integration Deepening:** With **12 new AI initiatives launched in Q3**, automation is scaling across credit, collections, and operations, reducing manual effort and enabling volume growth without commensurate headcount increases. * **Next-Gen AI Platform Imminent:** A conversational AI system—featuring real-time customer insights and multi-agent orchestration—is in CUG testing and set for live launch by **March '26**, targeting **80% autonomous resolution** of voice/chat interactions. * **Productivity Tools Transforming Workflows:** AI assistants like BuildBuddy (code feedback), DartGenie (data queries), and upgraded HR agent workflows are accelerating development, democratizing insights, and automating administrative tasks. * **AI-First Operating Model Taking Shape:** From KYC automation (**15% reduction in manual work**) to competitive benchmarking and cross-functional deployment, AI is central to governance, scalability, and stakeholder experience. * **Unique Operating Model Edge:** Company believes it is the **first to integrate consumer durable sales and unsecured digital lending** in a single team, creating a scalable, efficient go-to-market advantage. --- # 7. Risks & Credit Exposure ## A. Key Figures * **Asset Duration:** **3 to 5 years** * **Liability Enhancement Period:** **two to three quarters** ## B. Instant Loan Credit Cost * **Concentrated Risk Exposure:** Instant consumer loans represent the sole higher-risk segment among **13 diversified lending products**, driving elevated credit costs within an otherwise granular portfolio. * **Governed AI Integration:** AI initiatives are standardized under a **regulatory-aligned 'Seven Sutras' framework** to ensure safety, consistency, and accuracy in model-driven decisions. * **Weighted Credit Cost Dynamics:** Consolidated credit cost reflects a blend across four core businesses and the instant loan segment, with overall levels sensitive to the **relative scale of the instant loan book**. ## C. Portfolio Mix Volatility * **Mix-Driven Credit Trends:** Fluctuations in consolidated credit cost are primarily attributable to **shifting portfolio composition**, not isolated product performance, given the mathematical weighting of asset contributions. * **Strategic Discipline:** Growth is underpinned by a **credit-first, compliance-first philosophy**, supported by AI and technology to enable quality scaling and compounding returns. ## D. ALM Mismatch Risk * **Selective ALM Gap:** Positive asset-liability matching across all tenures except the **3 to 5 years bucket**, a gap targeted for resolution via recent capital infusion. * **Dynamic Duration Profile:** Asset duration remains flexible by design, with expected evolution over the next year as newer products increase in relative portfolio weight. --- # 8. Guidance & Outlook ## A. Key Figures * **AUM Growth Guidance:** **35%–40%** long-term target (directional benchmark) * **Direct Channel Target:** **40%–50%** of total commercial retail disbursements (over time) * **Capital Raise Approval:** **₹5,500 Cr** cash equity (12-month enabling window) ## B. AUM & Profitability Strategy * **Sustained High Growth Trajectory:** AUM expansion remains on a strong upward path, with recent performance exceeding the 35–40% guidance range due to robust retail demand. * **Direct Channel Push:** Strategic shift toward direct disbursements is accelerating to enhance profitability and long-term sustainability. ## C. Credit Cost Trajectory * **Structural Decline in Credit Costs:** Portfolio rebalancing toward lower-risk products—**gold loans, education loans, LAP, and salaried personal loans**—will drive a sustained reduction in overall credit costs. * **Improving Portfolio Quality:** Credit cost improvements expected to stem primarily from **favorable product mix shifts**, supported by disciplined risk calibration and strong collections, rather than just seasoning. * **ROA Expansion Pathway:** New product scaling and structural levers—including higher yields and operating leverage—are positioning the company for progressive margin and ROA improvement. ## D. Capital Raise Flexibility * **Strategic Capital Optionality:** ₹5,500 Cr equity approval provides full flexibility; deployment will be **tied to growth velocity**, with **no fixed timeline** for execution. * **Controlled Execution Risk:** Management retains full discretion over timing, emphasizing alignment with long-term growth plans and disciplined capital allocation.