Elevated opex from collection infrastructure investments
Opex ratio increased to 3.7% due to investments in MSME sales and collection teams; if credit costs do not decline as expected, profitability could be pressured.
medium · management_commentaryCarborundum 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
Financial stats pending filing verification
Risk Intelligence
Material risks this quarter
Concise cards keep the risk register scannable while preserving evidence-level context in the underlying quarter data.
Risks
Higher credit cost in intermediate retail segment
Credit cost in the intermediate retail segment was elevated due to prudent provisioning; analyst questioned sustainability, management cited management overlays.
medium · analyst_questionSlowdown in fee-based business growth
Fee income was subdued at 6% of AUM due to cautious underwriting and slow credit demand; management expects improvement in H2 but risk of delayed recovery.
low · data_observationMFI portfolio stress despite CGFMU cover
MFI credit cost improved but remains elevated at 5.1%; reliance on CGFMU guarantee may not fully offset underlying asset quality risks.
medium · analyst_question