This article first appeared on GuruFocus .
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AUM Growth:7% year-on-year growth, reaching INR11,482 crore.
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Revenue:INR753 crore, reflecting 10% Y-o-Y growth on a consolidated basis.
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Net Interest Margin:14.25% consolidated, 14.71% stand-alone.
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Operating Expense Ratio:7.35% consolidated, 7.23% stand-alone.
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Loan Loss Ratio:4.23% on a stand-alone basis.
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ROA and ROE:2.22% and 10.82% consolidated; 2.33% and 9.57% stand-alone.
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PAT:INR72 crores at consolidated level, up by 404% Y-o-Y.
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CRAR:24.64%.
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Liquidity Position:INR2,283 crore of balance sheet liquidity and INR2,206 crore of undrawn sanctions stand-alone.
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Branch Network:1,987 branches, covering 558 districts across 26 states and 5 union territories.
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Client Base:32.7 lakhs on a consolidated basis.
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PAR 90 Levels:Improved to 3.3% at INR287 crores on a stand-alone basis.
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On-Book Provisions:INR272 crore, representing 3.2% of the on-book portfolio.
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Subsidiary Performance:Satin Housing Finance Limited AUM at INR1,101 crore, 26.3% Y-o-Y growth; Satin Finserv AUM at INR759 crore, 58.4% Y-o-Y growth.
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Warning! GuruFocus has detected 3 Warning Signs with BOM:539404.
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Release Date: January 29, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Satin Creditcare Network Ltd ( BOM:539404 ) has delivered its 18th consecutive profitable quarter, showcasing consistent financial performance.
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The company achieved a year-on-year growth of 7% in its Assets Under Management (AUM), reaching INR11,482 crore.
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Satin Creditcare Network Ltd ( BOM:539404 ) has maintained a strong capital adequacy ratio, consistently above regulatory requirements, providing ample room for growth.
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The company has expanded its branch network significantly, adding 363 branches, which enhances its ability to serve underserved markets.
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Satin Creditcare Network Ltd ( BOM:539404 ) has made strategic investments in technology, including acquiring a 51% stake in QTrino Labs, to enhance efficiency and risk management.
Negative Points
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The company has maintained relatively high liquidity on its balance sheet, which can negatively impact Return on Assets (RoA).
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There is a noted decrease in gross yield, which may affect profitability if not managed carefully.
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Subsidiaries like Satin Housing and Satin Finserv have shown negligible RoA and RoE due to their expansion phase.
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The company has not provided specific guidance for cost-to-income ratio improvements for the upcoming quarters.
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Satin Creditcare Network Ltd ( BOM:539404 ) is experiencing slower growth in certain geographies like West Bengal and Bihar compared to others.
Q & A Highlights
Q: Why is Satin Creditcare maintaining high liquidity on the balance sheet, and will this continue? A: Harvinder Pal Singh, Chairman and Managing Director, explained that the high liquidity was a deliberate strategy due to industry headwinds, ensuring stability. However, this is not a long-term approach, and they plan to reduce liquidity levels as the situation improves.
Q: What factors contributed to the reduction in the cost of borrowing, and how does it affect gross yield? A: Harvinder Pal Singh noted that the reduction in borrowing costs was due to a decrease in the repo rate and the company's strong portfolio quality. Aditi Singh, Head of Investor Relations, clarified that previous quarter figures were inflated due to MTM gains and ForEx expenses, and the current reduction is not as significant as it appears.
Q: What is the outlook for cost-to-income ratio, RoA, and RoE for Q4 and the next year? A: Harvinder Pal Singh stated that the focus is on reducing credit costs and improving RoA. The company aims to end the year with a credit cost around 4%, down from 4.6% last year, and expects further improvements in RoA and RoE.
Q: What percentage of AUM is under the CGFMU scheme, and is the company positioned for higher disbursals? A: Currently, there is no AUM under the CGFMU scheme as they are awaiting further approvals. Harvinder Pal Singh confirmed that the company is prepared for higher disbursals, targeting a 10-15% growth.
Q: What is the company's strategy for geographic expansion and credit cost guidance for FY27? A: Harvinder Pal Singh mentioned plans to expand into new geographies like Kerala while deepening presence in existing areas. The credit cost is expected to improve, but specific guidance for FY27 will be provided later.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
