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
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
ESAF SFB reported a mixed Q2 FY26 with total business growing 5% YoY to ₹42,231 crore, driven by a strategic shift towards secured lending. Disbursements doubled YoY to ₹8,913 crore, with secured loans now constituting 61% of advances (up from 39% a year ago). Net interest income was ₹364 crore, with NIM stable at 5.9%. Asset quality remains under pressure with GNPA at 8.5% and NNPA at 3.8%, though slippages moderated to ₹340 crore. Management expects positive quarterly ROA in H2 FY26, targeting credit costs around 4% and a cost-to-income ratio of 60-65%. Key risks include elevated stress in the microfinance portfolio, particularly in Tamil Nadu, and potential NIM compression from the shift to secured lending.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects to achieve positive quarterly ROA in Q3 or Q4 FY26 as operating performance strengthens and provisions normalize.
- The bank aims to increase secured loan share to 70% of gross advances by March 2027, with unsecured share moderating to 30%.
- Management guided for loan book and disbursement growth of 20-25% on a year-on-year basis.
- Management expects credit costs to normalize to around 4% on a steady-state basis over the next few quarters.
Risks flagged
- Microfinance NPA remains high, with slippages of ₹255 crore in Q2, primarily from older vintages (2022-23) and concentrated in Tamil Nadu and Karnataka.
- The strategic shift towards lower-yielding secured loans has reduced NIM to 5.9%, and further compression may occur if yields on secured products do not improve as expected.
- Kerala continues to be the largest deposit base, posing regional concentration risk despite efforts to diversify into other states.
- A ₹40 crore NBFC exposure (Hela Infra) slipped into SMA1, and management's response was cautious, indicating potential for further deterioration.
Key quotes
- We are firmly on track to achieve our 70% secured portfolio targets by March 2027.
- FI26 will be a year of consolidation, one where we target moderate business growth while sharply improving operational metrics and asset quality.
- We are working towards attaining positive quarterly ROA in Q3, if not happening in Q3 definitely in Q4.
Research modules