Carborundum Universal Limited — Q2 FY26
Carborundum Universal (Northern Arc Capital) reported Q2 FY26 PAT of ₹92 crore, up 13% QoQ, driven by NIM expansion of 40bps QoQ to 9.3% as cost of funds declined 40bps to 8.5%.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
63%Questions answered3Evaded / deflected12Questions audited
Partial answer
High priority
Why no reduction in credit cost in H2 despite full-year guidance?
Asked by Dantara, Green Edge Belt
Acknowledged guidance but did not commit to reduction timing; cited quality improvement without numbers.
no specific timelinevague improvement hope
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Question
in the next two quarters which is H2 uh you know because your fullear guidance is 2.6 to 2.8 so it means that you know we may not see any reduction in uh credit cost
Ashish (CEO)
we said anywhere between 2.6 to 2.77 and a half. I think we will hopefully should see an improvement. Like I said that the quality of the new book is actually better than what we were seeing in the April 24.
Evasive
Medium priority
Will partnership loan book growth improve next 12 months?
Asked by Dantara, Green Edge Belt
Did not answer whether growth will improve; pivoted to holistic strategy.
reframed the questionno growth guidance given
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Question
next 12 months do you expect better growth rates in the placement business and the you know the partnership loan book which is say around 65 6700 crores is that possible
Ashish (CEO)
we look at credit solution as a single cohort... focus is more towards building a holistic credit solution business rather than a simplified balance sheetled approach.
Answered
Medium priority
Why was opex higher this quarter?
Asked by Dantara, Green Edge Belt
Confirmed opex increase due to collection infrastructure and direct lending build.
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Question
on the opex that this quarter was slightly higher. Was it because of the collections infra we are building in the small lap?
Ashish (CEO)
The idea was to proactively also build back on the both while we continue to hold the infra on the rural finance side but we also wanted to build a lot more on the direct lending capabilities.
Partial answer
High priority
Are MSME challenges subsiding? Transaction volumes sluggish.
Asked by Shwa, Vara
Acknowledged sluggishness but attributed to caution; did not confirm if challenges subsided.
no direct yes/noattributed to cautious approach
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Question
could you throw some light on MSME credit and um have we have we have to yet to assume that the challenges haven't subsided fully because your transaction volume sequentially have been quite sluggish
Ashish (CEO)
we continue to follow a calibrated and a little bit cautious approach. We do not represent in a placement business institution where we don't track risk.
Evasive
Medium priority
What contributed to higher credit cost in intermediate retail?
Asked by Shwa, Vara
Did not identify the driver; cited general prudence.
no specific reason givenattributed to prudence
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Question
what contributed to higher credit cost on the intermediate retail segment?
Ashish (CEO)
it's a prudent provisioning which we're carrying on some of the accounts. There is no specific reason for us to do it but we wanted to have enough management overlay.
Evasive
Medium priority
Which MSME sectors are under stress?
Asked by Shubranch Mishra, Philip Capital
Avoided naming stressed sectors; said secured book has no stress.
did not list sectorsclaimed no stress overall
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Question
which all sectors are actually under stress? Are they tariff elevator sectors or are there some other kind of sectors?
Ashish (CEO)
Primarily big focus is to do lending with the average ticket size of 10 to 85 lakhs which is secured by hard collateral... we not seeing any stress.
Answered
High priority
How much of funding cost benefit is yet to come?
Asked by Chintan Sha, ICA Securities
Provided specific percentage of benefit availed and timing of remaining repricing.
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Question
how much of the borrowings are yet to be repriced? I understand the 70% of the borrowings are floating in nature. So most of them have been repriced or do we anticipate some further benefit in S2 as well?
Treasury head (name not given)
we have roughly we have availed 50% of the benefit of the MCLR cuts but repricing of around 50% of our balance liabilities is yet to happen that will gradually happen in December and March quarter.
Partial answer
Medium priority
Is opex of 3.7% the peak?
Asked by Chintan Sha, ICA Securities
Did not explicitly confirm if 3.7% is peak; reiterated cause.
did not confirm peakrepeated reason
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Question
this 3.7 should largely be the peak. So more we don't expect any rise from there.
Treasury head (name not given)
the opex of 3.7% is largely the employee cost and the other opex and that has slightly increased and as Ashish mentioned primary load account of the collection infrastructure.
Answered
High priority
What is credit cost guidance for FY27?
Asked by Hendra Pradhan, Maximal Capital
Provided explicit range for FY27 credit cost.
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Question
given that both these things may not be sustainable in the next year what kind of credit for guidance would you look at at the new book in FI27?
Ashish (CEO)
if you're going to end this year at 2.6 to 2.7 the following year our credit cost should be between 2.3 to 2.5% here or 2.6%. It shouldn't be more than that.
Answered
Medium priority
Where will fee income settle as % of assets?
Asked by Hendra Pradhan, Maximal Capital
Provided specific basis point targets for fee income.
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Question
on the fee and other income in the ro tree we see that in this quarter this has been subdued at 6%. So where do we want this number to be?
Ashish (CEO)
on a full year basis we should be close to 80 85 to 90 basis point and as we go forward this number should be upward of 90 to 110 basis point.
Answered
High priority
Is AUM growth guidance 20-22% and ROA 2%?
Asked by Dal Javi, Crown Capital
Corrected the analyst's numbers with specific guidance.
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Question
you're saying an AUM growth of around 20 22% and ROA of 2%. Right? Is that fair sir?
Ashish (CEO)
No no we said the overall growth of 22 to 20 22% 20 to 22% and ROI of 2.8%.
Answered
Medium priority
What are green shoots in rural business?
Asked by Jariala, Dan Capital
Provided specific credit cost numbers and directional improvement.
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Question
our credit cost has improved on the NFIPs basically the rural business. So what are the green fields are we observing there?
Parasa (colleague)
the MFI grade cost Q1 was 7.7 and Q2 is 5.1%. we should expect the trade cost to improve... 1 to 90 has actually come down quite a bit between Q1 and Q2.