MFI Growth Rate Reduced to 15-20%
Regulatory guardrails on JLG lending constrain growth. Previously guided at 20-25%, management now targets 15-20%. This impacts a portfolio representing ~25% of total book and high-yield business.
LTF / Q3-FY26 / risks
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Material risks this quarter
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Sequential Credit Cost Improvement May Not Be Linear
Management explicitly cautioned that credit cost trajectory may not move in 'metronomic regularity' and depends on quarterly collection efficiency. Some quarters may show less improvement than others.
Unsecured Exposure at 44% of AUM
Analyst questioned whether company will resort to individual lending in MFI markets to compensate for lower MFI growth. Management indicated pilots possible in FY28, not FY27, signaling slower compensation timeline.
ECL Model Refresh Uncertainty in Q4 FY26
Analyst raised question on whether Q4 FY26 ECL refresh would be positive or negative impact on credit cost. Management response focused on FY27 Q4 benefits, deflecting near-term guidance.