Satin Creditcare profit rises 231% to 176 crore rupees in second quarter
Key Facts
Satin Creditcare said consolidated profit after tax rose 231% to 176 crore rupees in the second quarter of fiscal 2027, ended September 30, 2026, from 53 crore rupees in the corresponding quarter of the previous fiscal year. The official statement showed pre-provision operating profit at 324 crore rupees, up 53% from 212 crore a year earlier. Total consolidated revenue rose to 933 crore rupees from 711 crore, a 31% increase. The results came as the company expanded lending, with credit disbursements rising 41% to 3,697 crore rupees from 2,626 crore. Management also said the company recorded its 21st consecutive profitable quarter.
Consolidated assets under management stood at 16,589 crore rupees in the quarter, up 31% from 12,687 crore in the corresponding period. The figure puts the scale of operations alongside the increase in credit disbursements, while the two measures remain distinct: assets under management measure the assets the company manages, whereas disbursements reflect the value of loans issued during the period. The company linked its expansion to revenue growth, which rose at the same annual rate of 31%. Disbursements were 3,697 crore rupees, versus 2,626 crore a year earlier, an increase of 41%. The figures show activity expanding alongside higher quarterly profit.
On asset-quality indicators, gross on-book non-performing loans fell to 1.94% in the quarter from 2.18% in June 2026. The company reported a value of 197 crore rupees for these loans. On a standalone basis, PAR 1 declined to 2.92% in the second quarter of fiscal 2027 from 5.79% in the corresponding period of the previous year. Collection efficiency in the X segment was also 99.8% during the quarter, according to the statement. These indicators provide a picture of defaults and collections during the period, alongside growth in assets under management and disbursements.
The company said the cost of credit was 2.47%, down 236 basis points year on year. Excluding a management overlay of 50 crore rupees, it said the cost of credit was 0.99%. H.P. Singh, chairman and managing director, said the company retained the reserve as an additional buffer and that it limited reported profitability and return ratios. The statement said provisions remained well above regulatory requirements. The decline in the cost of credit therefore came alongside the retention of an additional management reserve, which management said affected reported profit.
On funding, the company said its marginal cost of borrowing fell 65 basis points year on year to 10.28% in the second quarter. It also raised around 2,630 crore rupees during the quarter through various debt instruments. The capital adequacy ratio was 27.89% on September 30, 2026, while on-balance-sheet liquidity stood at 2,235 crore rupees, according to the statement. These figures place funding and liquidity alongside the recorded expansion in assets under management and disbursements. The statement did not provide a figure comparing the cost of borrowing with the previous quarter.
For the first half of fiscal 2027, consolidated profit after tax was 299 crore rupees, versus 98 crore in the corresponding period, an increase of 204%. Singh said the company sees opportunities in housing finance, small and medium enterprise loans, technology and alternative investments. These areas are among the growth priorities cited by the chairman, and the statement did not set numerical targets for them. He also referred to the 50 crore rupee management reserve and its effect on reported profitability. The statement did not specify a later date or timeline targets for pursuing these opportunities.