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    DCCL

    DCCL
    Financial Services·27 May 2026
    Management Summary

    Dar Credit and Capital Limited delivered a strong Q4 and FY26 performance, driven by robust growth in total income, EBITDA, and PAT. The company's Asset Under Management (AUM) expanded significantly while maintaining excellent asset quality with a low GNPA and high capital adequacy. Strategic focus remains on secured MSME loans, technological integration, and deepening presence in existing geographies, supported by efforts to diversify funding and reduce the cost of funds.

    Highlights

    7

    • Total income for FY26 recorded as Rs. 50.05 crore against Rs. 41.39 crore in FY25, reflecting a growth of 20.9% on year-on-year basis.

    • EBITDA for FY26 increased to Rs. 34.69 crores from Rs. 29.26 crores in FY25, registering a growth of 18.6%.

    • Profit after tax for FY26 stood at Rs. 10.13 crore as against Rs. 7.04 crores in FY25, reflecting a strong growth of 43.9%.

    • Q4 FY26 total income of Rs. 14.23 crores against Rs. 10.33 crores in Q4 FY25, registering a growth of 39.6% on year-on-year basis.

    • Q4 FY26 PAT stood at Rs. 3.07 crores compared to Rs. 1.99 crores in Q4 FY25, registering a strong growth of 60.7% on year-on-year basis.

    • AUM stood at Rs. 229.55 crores, reflecting a healthy growth of 34.95%, almost 35% year-on-year.

    • GNPA was very healthy at just 1.01%, and the company maintained a strong capital adequacy ratio of almost 40%.

    Key financials

    Metrics

    10

    Periods

    3

    Headline

    4
    • AUM
      ₹229.55 Cr
      YoY+34.9%
    • GNPA
      1.0%
    • Capital Adequacy Ratio
      40%
    • Total Provisions
      ₹1.34 Cr

    Q4 FY26

    3
    • Total Income
      ₹14.23 Cr
      YoY+39.6%
    • EBITDA
      ₹10.18 Cr
      YoY+55.9%
    • PAT
      ₹3.07 Cr
      YoY+60.7%

    FY26

    3
    • Total Income
      ₹50.05 Cr
      YoY+20.9%
    • EBITDA
      ₹34.69 Cr
      YoY+18.6%
    • PAT
      ₹10.13 Cr
      YoY+43.9%

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Liquidity

    Liquidity disclosed

    Company maintained a strong capital adequacy ratio of almost 40%, significantly above regulatory requirements. They also strengthened their funding profile through diversified borrowing relationships and enhanced engagement with financial institutions and lenders. Current cost of funding is around 14%, with a target to reduce it further. They are looking for new lines of credit and VC arrangements from PSU banks.

    Guidance & targets

    7
    CategoryTargetPriority
    Branch Expansion
    Number of new branches
    5-7
    		High
    Balance Sheet Size
    Total Balance Sheet Size
    above Rs. 350 CR to 370 CR
    		High
    Portfolio Size
    Portfolio Size
    around 270-280 crores
    		Medium
    Portfolio Mix
    Personal Loan share
    30-35%
    		High
    Portfolio Mix
    Secured Loan share
    35-40%
    		High
    Cost of Funding
    Cost of funding percentage
    below 14%
    		Medium
    Credit Cost
    Credit cost (provisions)
    maintained at current level
    		High

    Single software system for LOS/LMS

    In the coming financial year (FY27)
    CurrentTwo systems (Vijay and RiseMoney)
    TargetOnly Vijay system

    Why it matters

    Consolidation of systems can improve operational efficiency, scalability, and control, impacting overall business performance.

    And from this financial year, we developed the module of the personal loan segment in Vijay. And the RiseMoney will be phased out in this financial year. So, in the coming financial year, there will be only one software with LOS, which is LOS and LMS, which will be the Vijay.

    How to verify

    detailed_narrative[title='Technology Integration and Operational Efficiency']

    0

    Q&A highlights

    8

    “Our primary focus will be in the secured loan portfolio, secured MSME portfolio.”

    Clarifies the company's strategic direction for portfolio growth, emphasizing secured assets for better risk management and lender comfort.

    asked by Brian Sharma

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 and FY26 Financial Performance Overview

    Dar Credit and Capital Limited reported robust financial results for Q4 and the full fiscal year 2026. For FY26, total income grew by 20.9% to Rs. 50.05 crore, with EBITDA increasing 18.6% to Rs. 34.69 crores, and PAT surging 43.9% to Rs. 10.13 crore. The strong performance continued into Q4 FY26, where total income rose 39.6% to Rs. 14.23 crores and PAT jumped 60.7% to Rs. 3.07 crores, reflecting healthy business growth and profitability expansion.

    02

    Operational Growth and Asset Quality

    The company achieved significant operational milestones in FY26, expanding its Asset Under Management (AUM) by 34.95% to Rs. 229.55 crores. This growth was supported by a presence in 6 states with 35 operational branches serving over 22,500 active customers. DCCL maintained excellent asset quality with a healthy Gross Non-Performing Asset (GNPA) ratio of just 1.01% and a strong Capital Adequacy Ratio of almost 40%, significantly exceeding regulatory requirements.

    03

    Strategic Focus on Secured MSME Portfolio

    Management emphasized a strategic shift towards strengthening the secured loan portfolio, particularly secured MSME loans, due to their popularity, comfort for lenders, and high collection/recovery percentages. While personal loans to municipal employees (technically unsecured but practically secure) will continue, the primary growth driver will be the secured MSME segment, which also offers faster churning and higher growth rates compared to personal loans. The targeted portfolio mix for the upcoming 3-4 years aims for 30-35% personal loans and 35-40% secured loans.

    04

    Technology Integration and Operational Efficiency

    DCCL is actively enhancing its digital lending infrastructure. The company plans to consolidate its loan origination system (LOS) and loan management system (LMS) into a single 'Vijay' software platform, phasing out the older 'RiseMoney' system in the coming financial year. This integration aims to improve operational scalability, customer experience, and control, with an in-house team managing data and software development, avoiding third-party vendors.

    05

    Funding and Capital Structure Diversification

    The company continued to strengthen its funding profile through diversified borrowing relationships and enhanced engagement with financial institutions. Management indicated a current cost of funding around 14% and aims to reduce this further. They are actively exploring new lines of credit and venture capital arrangements with PSU banks to support long-term growth and maintain market liquidity, which is seen as prospective for the NBFC sector.

    06

    Geographical and Portfolio Expansion Strategy

    DCCL's immediate geographical strategy focuses on consolidating and deepening its presence within existing states (Bihar, Jharkhand, Rajasthan, West Bengal) rather than venturing into new states like UP, Maharashtra, or Tamil Nadu. The company plans to add another five to seven branches in FY26-27, focusing on deep drives in new areas within existing branches. This strategy aims to capture growth in West Bengal, leveraging government projects and scopes.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.