Read the quarter in context.
A source-linked quarter view: reported numbers, management language, guidance, and the risks that should carry forward.
ConCallIQ research layer
Signal, with the source still visible.
Use the controls below to narrow the view, then follow the evidence into the next layer of context.
Revenue
Pending
verification pending
Revenue YoY
—
reported change
EBITDA
Pending
latest reported figure
Source
manual review required
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
AU Small Finance Bank delivered a strong Q4 FY26 with PAT of ₹832 crore (+65% YoY) and ROA of 1.8%, driven by margin expansion (+24bps QoQ to 5.96%), lower credit costs (0.6%), and robust deposit growth (+23% YoY). Loan book grew 21% YoY led by secured assets (wheels +27%, gold loan doubled). Asset quality improved with GNPA down 27bps to 2.03%. Management guided for FY27 credit cost around 90bps and cost-to-assets below 4%, while targeting sustainable compounding at 2-2.5x nominal GDP growth. Key risk: margin pressure from seasonal Q4 benefits reversing and cost of funds potentially bottoming out.
Colored figures show movement against the previous available record.
Guidance to track
- Management guided to build credit cost around 90bps for next year, with potential savings from normalization in MFI and credit card portfolios.
- Management expects cost-to-assets (ex-CGFMU) to decline below 4% in the current financial year, from 4.1% in FY26.
- The bank aims to grow at 2 to 2.5 times India's nominal GDP growth rate over the long term.
- Management's long-term aspiration is to bring cost of funds to around the prevailing repo rate, currently 5.25%.
Risks flagged
- Q4 margins benefited from lower day count and lower slippages; these are unlikely to recur in Q1, potentially compressing NIMs.
- Management noted that with recent rate increases, cost of funds may have bottomed, limiting further margin expansion.
- Analyst raised concern about new ECL norms; management deferred guidance, stating it's too early to comment, indicating potential uncertainty.
- Management acknowledged risks from West Asia tensions on fuel prices, inflation, and consumption, though direct exposure is limited.
Key quotes
- We are inducting AI in our core operating model which can lead to a complete reimagination of our customer journeys and provide a sustainable operating leverage over the coming years.
- I would advise anybody that you should actually build this quarter credit cost as an overall cost for next year... you should build it around 90 pips or maybe in that range.
- Our focus will remain on building a very stable liability franchise... we are not playing a profit game; we need to build it somehow somewhere.
Research modules