SATIN - SATIN CREDITCARE NETWORK LIMITED Share Price

In the earnings call for FY26, management provided a confident outlook for FY27, projecting a standalone Assets Under Management (AUM) growth of 15% to 20%, which translates to approximately INR 14,800 crores to INR 15,100 crores. They also aim to achieve a credit cost of 3% to 3.5%, which reflects a significant improvement from the FY26 level of 3.8%.

The management highlighted that the firm's long-term consolidated AUM target has been revised upward from INR 25,000 crores to INR 32,000 crores by 2030, with an emphasis on expanding non-MFI business to 30% of total AUM by the same date.

Management underscored the importance of discipline in execution and outlined several forward-looking metrics:

• Consolidated AUM growth: Expected to be 25% to 30% due to strong performance across subsidiaries.
• Credit cost: Targeted at 3% to 3.5% for FY27, down from 3.8% in FY26.
• Collection efficiency: X bucket collection efficiency remains at 99.9%.
• Funding: INR 10,826 crores raised in FY26, with a marginal cost of borrowing declining by 43 basis points to 10.82%.
• Asset quality: Standalone GNPA stands at 3.1% as of March '26 with an X bucket collection efficiency of 99.9% and stage 3 coverage improving to 73%.

These metrics provide a strong foundation for management's optimistic projections and commitments to sustainable growth moving forward.

Here are the major questions and answers from the Q&A section of the Satin Creditcare Network Limited earnings transcript:

1. Anil Tulsiram: What customer profile does Satin Finserv target, and how is the underwriting done?

   • H.P. Singh: Satin Finserv targets graduated microfinance customers needing higher ticket sizes and micro enterprises for green finance. Our underwriting combines manual assessment with data analytics, focusing on cash flows. All loans are secured by receivables, equipment, or movable property, hence it is not unsecured lending.

2. Anil Tulsiram: What percentage of loans is secured against property?

   • H.P. Singh: The Loan-to-Value ratio typically stands between 40% and 45%. However, I can't specify the exact percentage of the total book against property security, as various forms of collateral are involved.

3. Anil Tulsiram: Is there overlap between MFI customers and Satin Finserv?

   • H.P. Singh: There is zero overlap. Customers with microfinance loans must forgo them to access loans from our group subsidiaries, limiting them to one loan per customer across the subsidiaries.

4. Saumil Shah: What is the X bucket collection efficiency for April?

   • Aditi Singh: It is holding steady, similar to Q4's figure of 99.9%.

5. Saumil Shah: Are there any stresses due to geopolitical issues?

   • H.P. Singh: Currently, we are not experiencing any stress due to geopolitical crises across our operational regions.

6. Saumil Shah: In FY27, what AUM growth can we expect on a consolidated basis?

   • H.P. Singh: We anticipate a consolidated growth rate of about 25% to 30%, factoring in the robust performances from our subsidiaries.

7. Darshil Jhaveri: Are we aiming for linear AUM growth?

   • H.P. Singh: The 15% to 20% guidance applies to standalone microfinance. Consolidated growth could reach 25% to 30%, which is reflective of our broader strategy.

8. Raghav Bhutoria: What is the net gain from derecognition of financial instruments?

   • Jugal Kataria: The INR 144 crores gain is from forex borrowings and associated changes in foreign exchange risk, and doesn't directly relate to our business income.

9. Subhanshu Mangal: What was the Q4 credit cost at the consolidated level?

   • Aditi Singh: The consolidated credit cost for Q4 stood at 2.2%, amounting to INR 79 crores. For FY26, it was 3.55%.

10. Anil Tulsiram: What is our strategy regarding high-ticket individual loans?

    • H.P. Singh: We are piloting high-ticket individual loans, but will predominantly continue with our JLG (Joint Liability Group) model.

These responses are designed to succinctly encapsulate the information provided in the earnings call while adhering to character limits and maintaining essential details, including forward guidance and quantitative metrics.