Dar Credit & vs Icicibank Q3 FY26

Dar Credit & Capital delivered a strong Q3 FY26 with net profit of ₹2.52 crore and PAT margin expanding to 20%, the highest in five quarters. Revenue stood at ₹12.61 crore and EPS at ₹1.77 (quarterly). The 9-month PAT of ₹7.04 crore already crossed 85% of FY25 full-year PAT, positioning the company for record annual profitability. Growth was driven by disciplined underwriting, a shift toward secured MSME lending (micro LAP) and the niche municipal employee loan product, which together now form the core portfolio. Asset quality remains robust with GNPA at 1.9% and NNPA below 1%. Management guided for AUM to reach ₹235 crore by Q4 FY26 and cross ₹300 crore by FY27, supported by branch expansion into Bihar, Jharkhand, and Rajasthan. No equity fundraising is planned given a strong CAR of 43.84% and ample debt headroom. Key risk: rapid geographic expansion could strain asset quality if underwriting standards slip.

Guidance read

AUM to reach ₹235 crore by Q4 FY26: Management expects to add ₹30-35 crore in AUM during Q4, closing FY26 at around ₹235 crore. AUM to cross ₹300 crore by FY27: Balance sheet assets projected to exceed ₹300 crore by March 2027, with borrowings increasing to ~₹250 crore. Average monthly disbursement of ₹14-15 crore: Internal target for monthly disbursement run-rate to support growth without compromising asset quality. NCD issuance plan of ₹100-125 crore: Company plans to raise ₹100-125 crore via listed NCDs in the coming year to fund growth.

Risk read

Key risks include Geographic expansion into new states may strain asset quality — Branch expansion into Bihar, Jharkhand, and Rajasthan for secured MSME lending could face underwriting challenges in unfamiliar markets.; High customer dropout rate of 40% — Management disclosed a 40% dropout rate due to deliberate pruning of over-leveraged customers, which could limit growth if new acquisition slows.; ROE remains compressed at 7.5% despite high CAR — Analyst noted ROE is low relative to capital base; management did not provide a clear path to improve ROE, indicating potential inefficiency.; No AI adoption may limit scalability — Management stated they do not see need for AI in underwriting, relying on personal touch; this could hinder cost efficiency and scalability vs peers..

Promise ledger

Scorecard data is being built as historical quarters are processed.

ICICI Bank reported a mixed Q3 FY26 with PAT declining 4% YoY to INR 113.18 billion, impacted by a one-time standard asset provision of INR 12.83 billion directed by RBI for agricultural PSL classification issues. Excluding this, PAT would have grown 4.1% YoY. Core operating profit rose 6% YoY to INR 175.13 billion, supported by NIM stability at 4.3% and fee income growth of 6.3%. Domestic loan growth accelerated to 11.5% YoY, led by business banking (+22.8%) and mortgages (+11.1%), while credit cards declined 3.5% YoY. Asset quality improved with net NPA at 0.37%. Management expects NIM to remain range-bound and loan growth momentum to sustain. Key risks include elevated operating expense growth and potential further regulatory scrutiny on PSL compliance.

Guidance read

NIM to remain range-bound: Management expects net interest margin to stay around current levels in Q4, supported by deposit repricing and lower non-accrual impact. Loan growth momentum to sustain: Sequential loan growth improved in Q3 and management expects this momentum to continue into Q4. Credit card book to improve gradually: After a seasonal decline in Q3, credit card portfolio is expected to grow from current levels.

Risk read

Key risks include RBI-directed standard asset provision may recur — RBI directed INR 12.83 billion provision for agricultural PSL non-compliance; similar observations could arise for other portfolios.; Operating expense growth may remain elevated — OpEx grew 13.2% YoY, partly due to new labour code provisions and PSL compliance costs; management did not commit to moderation.; Credit card book decline may persist — Credit card portfolio declined 3.5% YoY and 6.7% QoQ; management attributed it to seasonality but growth outlook remains uncertain..

Promise ledger

Of 3 tracked promises, management 0 met, 0 close, 3 missed.