Financial Performance:

• Revenue: ₹22,080 crores (FY25, growth of 14% YoY)
• Net Income: ₹16,779 crores (FY25, growth of 16% YoY)
• Earnings Per Share (EPS): Not explicitly stated, but PAT of ₹16,779 crores indicates strong profitability.
• Operating Income: ₹5,647 crores (Q4 FY25, growth of 11% YoY)
• Gross Margin: Not explicitly provided, but Net Interest Margin (NIM) was mentioned.
• Operating Margin: OPEX to NII improved to 33.1%.
• Cash Flow from Operations: Not directly mentioned.
• Capital Expenditures: Not mentioned if on time or delayed.
• Debt and Liquidity Position: Total borrowing stood at ₹18,754 crores, with a cost of funds at 7.99%. Expected to reduce to 7.75-7.85% by end of FY26.
• Other Key Financial Metrics:
  • AUM growth of 26% YoY.
  • ROA at 4.6%, ROE at 19.1%.
  • Net NPA at 44 basis points.

Business Updates & Strategic Developments:

• Product or Service Launches: Launched special interim dividend of ₹12 per share and four fully-paid bonus shares for every one share.
• Market Expansions: Added 137 standalone Gold Loan branches and 30 MFI branches.
• Partnerships & Collaborations: Acquired a 12% stake in Protectt.ai for ₹65 crores to enhance cybersecurity.
• Acquisitions or Divestitures: No major acquisitions or divestitures announced besides the stake in Protectt.ai.
• Regulatory Approvals or Updates: No specific regulatory updates mentioned.
• Legal or Compliance Issues: No issues were reported.

Industry Outlook:

• Sector-Wide Trends: The company remains optimistic about sector growth despite elevated credit costs.
• Macroeconomic Factors Affecting the Industry: Anticipation of lower interest rates and improved liquidity conditions.
• Competitive Landscape: Competitive pressure remains, but the company holds a small market share of 2.14% in total credit.
• Insights from Competitor Earnings Calls: No specific competitor insights were shared.

Export Business & International Operations:

• Export Revenue & Growth: Not mentioned.
• International Market Expansions & Challenges: Not addressed.
• Foreign Exchange Impact: Not discussed.
• Regulatory or Trade Policy Impacts: Not mentioned.
• Export Outlook: No outlook provided.

Domestic & International Business Risks:

• Domestic Market Risks: Elevated credit costs in unsecured loans and two-wheeler financing.
• International Market Risks: Not discussed.
• Operational Risks: Increased employee attrition at 16.8%.
• Economic & Macroeconomic Risks: Concerns over rising inflation and interest rates.

Forward Guidance & Future Targets:

• Revenue & EPS Projections: Revenue growth targeted at 24-25% for FY26.
• Other Key Metrics Forecasts:
  • NIM expected to remain stable.
  • Credit costs projected to average between 1.85-1.95%.
• Management's Confidence Level on Meeting Targets: Optimistic about profit growth in FY26, with significant improvements anticipated in credit costs.

Promises & Commitments Tracking

New Commitments Made in this Call:

• Specific Goals or Targets: Aim to add 14-16 million customers in FY26, AUM growth at 24-25%.
• New Cost-Saving or Growth Initiatives: Focus on improving OPEX to NTI by 40-50 bps through AI integration.

Status of Previous Promises:

• Completed/Fulfilled Commitments: Successfully onboarded 44,500 employees from outsourced manpower to fixed term contracts.
• Ongoing Commitments (In Progress): Continued efforts on the FinAI transformation and managing credit costs.
• Delayed or Missed Commitments: Credit costs were higher than previously targeted.

Capital Expenditure & Investment Plans:

• Planned vs. Actual Execution: No explicit mention of delays or execution status.
• Major Investment Areas: Investment in technology and cybersecurity through Protectt.ai.
• CapEx Trends Compared to Prior Periods: Not specifically addressed.

Profitability & Margin Analysis:

• Margin Expansion or Contraction: Operating margin showed improvement with OPEX to NTI at 33.1%.
• Cost Management Measures: Efficiency improvements expected from AI initiatives.
• Operational Efficiency Trends: Employee headcount at 64,000, indicating a focus on enhanced productivity.

Shareholder Returns & Capital Allocation:

• Dividend Announcements: Proposed final dividend of ₹44 per equity share and additional special interim dividend of ₹12 per share.
• Stock Buybacks & Other Shareholder Incentives: No buybacks mentioned.
• Debt Repayment & Capital Management: Strong capital adequacy at 21.93%, with Tier 1 capital at 21.09%.

Q&A Session Insights:

• Key Questions Asked by Analysts:
  • Inquiries about ECL model refresh and its implications on credit costs.
  • Questions regarding NIM stability amid falling interest rates.
• Management's Responses & Clarifications: Management emphasized strong customer acquisition and ongoing efforts to control credit costs.
• Unanswered or Avoided Questions: No significant questions were avoided during the Q&A session.