Credit cost may rise as embedded finance portfolio seasons
Management expects GNPA for embedded finance to reach 4-4.5% as cohorts mature, which could increase overall credit costs.
UGROCAPITAL / bear-case history
Track the concerns that keep returning.
Ugro Capital · risk themes across the available quarters.
Research layer active
Bear-case history
Risks carried through the record.
medium
AUM growth may remain flattish during transition
As the prime book runs down and focus verticals grow, total AUM may stay flat for FY27, potentially disappointing growth-focused investors.
Cost savings may not fully flow to bottom line
Management cautioned that the ₹220 crore opex reduction will not directly translate to profit due to portfolio rundown and revenue mix shift.
Competition could pressure yields in focus segments
High yields in EM LAP and embedded finance may attract competitors, potentially compressing margins over time.