The company delivered a solid set of numbers with strong retail-driven growth, improved asset quality (GNPA sub-1%), negative credit costs from recoveries, and healthy operating leverage. Profit grew double-digits YoY and sharply QoQ, while AUM crossed ₹90,000 crore with a clear retail focus (99.5% of portfolio). The board recommended a final dividend of ₹8 per share (face value ₹10).
Key Financial Highlights (Consolidated)Q4 FY26 (Jan–Mar 2026)
- Net Profit: ₹656 crore
- +19% YoY (from ~₹550–567 crore in Q4 FY25)
- +26% QoQ (from ₹520 crore in Q3 FY26)
- Revenue from Operations: ₹2,182 crore (up sequentially; total income ~₹2,172 crore)
- Net Interest Income (NII): ₹796 crore, +8.2% YoY
- Profit Before Tax: ₹855 crore (+20% YoY / +28% QoQ)
- Disbursements: ₹9,355 crore (+36% YoY / +50% QoQ)
- Retail disbursements hit all-time high of ₹9,020 crore (corporate re-entry: ₹335 crore after ~4 years)
- AUM/Loan Book (as on Mar 31, 2026): ₹90,921 crore, +13% YoY
- Retail loans: ₹86,946 crore, +16% YoY (99.5% of total)
- Affordable & emerging markets segment: +28% YoY, now 40% of retail book
- Asset Quality: GNPA improved to 0.93% (from 1.08% YoY). Recoveries of ₹332 crore in FY26 led to negative credit cost of -0.45%.
- NIM: 3.69% (up 6 bps QoQ; marginally down YoY from 3.75%)
- Spread: 2.12% (down 10 bps QoQ due to yield softening to 9.47%, offset by lower borrowing cost at 7.35%)
- ROA: 2.66% (+10 bps YoY)
- ROE: 12.73% (+54 bps YoY)
- Capital Adequacy: Strong at 27.26% (Tier-I 26.89%)
- Branches: 393 (added 37 in FY26)
Full Year FY26
- Net Profit: ₹2,291 crore, +18% YoY (from ₹1,936 crore)
- Total Income: ₹8,505 crore (up ~10.6% YoY)
Performance Analysis & Key Takeaways
Positives:
- Retail momentum strong: Record disbursements and 16% retail AUM growth reflect successful pivot to housing loans + affordable segment. This drove fee income and overall volumes.
- Asset quality best-ever: GNPA below 1% + negative credit cost boosted profitability without higher provisions.
- Operating leverage kicking in: Expenses declined sharply QoQ; profit grew faster than NII/revenue.
- Balanced growth: Modest corporate re-entry while keeping retail dominant. ROA/ROE improved.
- Dividend signal: ₹8/share payout shows confidence in capital position (very strong CAR).
Areas to watch:
- NIM/Spreads moderated slightly QoQ due to yield compression in a competitive rate environment.
- Sequential revenue growth was modest; full-year growth was steady but not explosive.
Management View (MD & CEO Ajai Shukla): “FY26 was a year of resilient and balanced growth… healthy expansion in retail loan portfolio, robust asset quality, and improved ROA.”
Bottom Line:
A clean, retail-led beat with best-ever asset quality and a healthy dividend. Growth is disciplined rather than aggressive, which bodes well for sustainable ROA/ROE expansion in FY27. Investors can view this as a positive result overall, though the market’s mild sell-off suggests it was largely in-line with expectations.