AUM (including managed portfolio)
₹213 crore
+13.3% vs FY25 close
Total loan book including managed portfolio grew from ₹188 crore in FY25 to ₹213 crore.
DARCREDITCAPITAL
Financial Services
10 Feb 2026
Dar Credit & Capital Ltd — 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.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
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.
Key Numbers
Secured MSME loan book
₹50 crore
+66.7% vs FY25
Secured MSME (micro LAP) grew from ₹30 crore in FY25 to ₹50 crore in 9M FY26.
Municipal employee loan book
₹82.5 crore
+7.8% vs FY25
Niche personal loan to municipal employees grew from ₹76.5 crore in FY25 to ₹82.5 crore.
CAR (Capital Adequacy Ratio)
43.84%
flat vs prior quarter
CAR remains well above RBI minimum of 15%, providing headroom for growth.
Management Guidance
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.
Management guidance growthAUM to cross ₹300 crore by FY27
Balance sheet assets projected to exceed ₹300 crore by March 2027, with borrowings increasing to ~₹250 crore.
Management guidance growthAverage monthly disbursement of ₹14-15 crore
Internal target for monthly disbursement run-rate to support growth without compromising asset quality.
Management guidance growthNCD issuance plan of ₹100-125 crore
Company plans to raise ₹100-125 crore via listed NCDs in the coming year to fund growth.
Management guidance capexKey Risks
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.
medium · management_commentaryHigh 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.
medium · analyst_questionROE 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.
medium · data_observationNo 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.
low · management_commentaryNotable Quotes
We believe to be the traditional financers to cater these type of borrowers because these borrowers are not the new age borrowers.
Our 9 months PAT has already crossed the 85% of the full year 25 PAT, positioning us in a strong lead to deliver record annual profitability.
We are fairly capitalized and at present 100 plus networth, so with only 159 crores borrowing we had a big headroom for new borrowings.
Frequently Asked Questions
What was Dar Credit &'s revenue in Q3 FY26?
Dar Credit & reported revenue of ₹13 Cr in Q3 FY26, representing a — change compared to the same quarter last year.
What guidance did Dar Credit & management give for FY27?
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.
What are the key risks for Dar Credit & in FY27?
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..
Did Dar Credit & meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Dar Credit & Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.