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Emerald Finance Limited — Q4 FY26 earnings call

Call held 1 Jun 2026

Company page: Emerald Finance share price, financials & guidance record

Management summary

Emerald Finance delivered strong financial results for Q4 FY26 and the full fiscal year, marked by significant growth in total income and net profit, alongside a CRISIL rating upgrade. The Early Wage Access (EWA) business demonstrated healthy traction, though disbursements were impacted by market volatility and high corporate rejection rates. Management acknowledged analyst feedback on the need for more granular financial disclosures, particularly concerning NPA and segment-wise performance.

Highlights

  • Total Income for Q4 FY26 grew to INR9.76 crores from INR6.49 crores in Q4 FY25, a 50% YoY increase.

  • Net Profit for Q4 FY26 was INR4.364 crores, with an EPS of INR4.36.

  • Full year FY26 Total Income reached INR31.2 crores and Net Profit was INR15.15 crores, with an EPS of INR4.36.

  • CRISIL rating upgraded from BB+ to BBB-, indicating improved financial strength.

  • Early Wage Access (EWA) business continued to show healthy traction, with 180-185 active corporates and a target to add 120-150 new corporates annually.

Concerns

  • EWA disbursement run rate slowed to INR10 crores in Q4, below the guided INR11.5-12 crores.

  • Market volatility led to a high corporate rejection rate of 60% for new EWA partnerships.

  • Analyst concerns regarding the lack of granular NPA breakdowns (EWA vs. business loan) and segment-wise revenue/profit data in the presentation.

Key financials

4 periods

Headline

  • Gross NPA (Last Year)
    ₹0.66 Cr
  • NPA Recovered
    ₹0.38 Cr
  • NPA Written Off (as of Mar 31, 2026)
    ₹0.23 Cr
  • Post Write-off Collection (April)
    ₹0.06 Cr
  • SME Loan Book
    ₹1.11 Cr

Q4

  • EWA Disbursement
    ₹10 Cr
  • Cross-sell Disbursement
    ₹12 Cr
  • EWA + Cross-sell Revenue
    ₹0.75 Cr

Q4 FY26

  • Total Income
    ₹9.76 Cr
    YoY +50%
  • Net Profit
    ₹4.364 Cr
  • EPS
    ₹4.36

FY26

  • Total Income
    ₹31.2 Cr
  • Net Profit
    ₹15.15 Cr
  • EPS
    ₹4.36

What they filed

Q1 FY27: revenue up 40.7%, net profit up 53.0% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue5 6 6 7 7 +38%8 +36%10 +51%9 +41%
Net profit2 2 3 3 4 +76%4 +61%4 +64%5 +53%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Capital allocation

medium confidence
  • Debt Debt disclosed
    Not yet, but we are receiving a lot of offers from financial institutions to take funds from them. I think you should hear from us shortly.

Guidance & targets

Volume

  • EWA Corporate Onboarding Volume · Annual · Medium confidence 150 to 200 companies
    So, we're looking at an addition of anywhere between 150 to 200 companies depending on the market environment and the quantum and the size of the company we are getting.

    — Talin Aggarwal

  • EWA Corporate Onboarding Volume · Next two years · Medium confidence 120 to 150 corporates a year
    I think the next two years, we are again just looking to add about 120 to 150 corporates a year, hopefully on a growing trajectory quarter-on-quarter.

    — Talin Aggarwal

Profitability

  • EPS Profitability · FY27 · High confidence crossing 7

    From 4.36 today

    Last year we were 4.36, and I am pretty decent if all things go well, we should be crossing 7 this year.

    — Sanjay Aggarwal

Credit Growth

  • EWA Program Growth Credit Growth · FY27 · Medium confidence same pace as from FY25 to FY26
    We'll just look to grow it at probably the same pace as from FY25 to FY26, subject to market conditions.

    — Talin Aggarwal

  • SME Loan Growth Credit Growth · This year (FY27) · Low confidence good growth
    I think, there should be good growth in this year. I cannot commit on the numbers right now, but there should be decent growth this year. A lot of proposals in the pipeline. There should be decent work in this year.

    — Sanjay Aggarwal

What to watch in Q1 FY27

Cost of Funds Reduction

Short term / next quarter
Current Not yet reduced post CRISIL upgrade
Target Reduction in cost of funds

Why it matters

A reduction in the cost of funds will directly improve Net Interest Margin (NIM) and overall profitability.

Not yet, but we are receiving a lot of offers from financial institutions to take funds from them. I think you should hear from us shortly.

Risks & concerns

  • Market Volatility

    high

    Market volatility has led to a 60% corporate rejection rate and slowed EWA disbursements.

    Management acknowledged

  • NPA Disclosure Granularity

    medium

    Analysts repeatedly requested more detailed NPA breakdowns and segment-wise financial data for better business understanding.

    Analyst acknowledged

Q&A highlights

6 direct, 1 evasive
NPA Breakdown and Recovery Direct
So, we had a gross NPA last year, which is including EWA plus our business loan and personal loan of INR66 lakhs. We recovered INR38 lakhs from our NPA pool and remaining as of March 31, we had written off INR23 lakhs.

Clarified the specific amounts of NPA, recoveries, and write-offs, addressing a recurring analyst concern.

Asked by Manish Kunwar

EWA Disbursement Slowdown Direct
The market is very finicky, or maybe I should say the market has become highly volatile in the past three to four months. Our corporate rejection rate is almost as high as 60% now.

Provided a clear reason for the EWA disbursement slowdown, linking it to broader market conditions and corporate rejection rates.

Asked by Bibhor Halan

EWA Revenue and Cross-sell Yield Direct
You are saying only EWA disbursal it is 6%. And what is the average yield you get from the cross-sell of EWA of the INR12 crores of the disbursals that you have given from cross-sell, what is the average yield you get? 1.3.

Clarified the average yield on cross-sell products and confirmed the estimated EWA revenue for the quarter, providing insight into profitability drivers.

Asked by Bibhor Halan

FY27 EPS Guidance Direct
Last year we were 4.36, and I am pretty decent if all things go well, we should be crossing 7 this year.

Provided a specific forward-looking EPS target for the next fiscal year, indicating management's confidence.

Asked by Bibhor Halan

Cost of Funds Post Rating Upgrade Partial
Not yet, but we are receiving a lot of offers from financial institutions to take funds from them. I think you should hear from us shortly.

Indicated that while the rating upgrade hasn't immediately reduced the cost of funds, it has opened up new funding opportunities, suggesting future benefits.

Asked by Divesh Rathi

EWA Corporate Capping and Employee Loan Limits Direct
Correct, correct. We do a multi-cap here. One, the maximum we expose is 50% of earned salary to an employee, and on a corporate level, we have caps that to a corporate we will not expose more than X lakhs.

Explained the company's risk management framework for EWA, including exposure limits at both employee and corporate levels.

Asked by Divesh Rathi

EWA Active Users vs. Cross-sell Conversion Direct
So out of the 100% pool that I have, out of the 30,000 I have, 15% use EWA on a month-on-month basis, but the cross-sell is primarily being driven from the balance 85%.

Revealed that the majority of cross-sell revenue comes from employees who do not actively use EWA, highlighting the effectiveness of their broader engagement strategy.

Asked by Harshul Sood

NPA Disclosure Granularity Evasive
No worries. I appreciate it, but these are very, very important numbers to understand. In the last call also we discussed the same, that you will provide this in your presentation. Without these numbers, it becomes very difficult to understand the business.

Highlighted a persistent analyst concern about the lack of detailed NPA and segment-wise financial breakdowns, which management has yet to fully address in their presentations.

Asked by Bibhor Halan

2 min read 6 chapters

Detailed narrative

Q4 FY26 and Full Year Financial Performance

Emerald Finance reported a robust Q4 FY26 with total income of INR9.76 crores, a significant increase from INR6.49 crores in Q4 FY25, representing a 50% YoY growth. Net profit for the quarter stood at INR4.364 crores, translating to an EPS of INR4.36. For the full fiscal year FY26, the company achieved a total income of INR31.2 crores and a net profit of INR15.15 crores, with an EPS of INR4.36. The company's EBITDA for FY26 was INR3.3 crores.

Early Wage Access (EWA) Business Traction and Challenges

The EWA business continued to show healthy traction, supported by increasing corporate and employee adoption, with 180-185 active corporates currently onboarded. However, the Q4 EWA disbursement run rate slowed to INR10 crores, below the guided INR11.5-12 crores, primarily due to market volatility and a high corporate rejection rate of 60%. Despite this, the cross-sell segment contributed INR12 crores in disbursements, with an average yield of 1.3%, and management estimates Q4 EWA + cross-sell revenue to be around INR0.75 crores.

Asset Quality and NPA Management

The company provided clarity on its NPA position, stating that out of INR66 lakhs gross NPA from the previous year, INR38 lakhs were recovered, and INR23 lakhs were written off as of March 31, 2026. An additional INR6 lakhs was collected post write-off in April. Management confirmed that INR8 lakhs of the written-off amount pertained to business loans, with the remainder from EWA, and assured that no new customers have been added to the NPA pool.

Strategic Initiatives and Technology Investment

Emerald Finance continues to invest in its technology-led financial services platform, strengthening strategic partnerships and improving operational efficiencies across all three business verticals. The proprietary API-driven platform enables seamless onboarding, salary validation, disbursement, and customer services. The company has also enhanced customer accessibility and digital engagement through the Emerald EWA mobile application and by disbursing through WhatsApp mode.

Outlook and Growth Drivers

The company remains optimistic about opportunities in India's fintech and digital lending ecosystem, driven by increasing digital adoption and financial inclusion. The recent CRISIL rating upgrade from BB+ to BBB- is expected to facilitate better access to funds and potentially reduce the cost of debt. Management aims to achieve an EPS of 7 for FY27 and expects good growth in its SME loan book, which currently stands at INR111 crores.

Geographic Expansion and Product Diversification

While the primary focus remains on North and West India, Emerald Finance is actively exploring expansion into Southern and Eastern states, having recently onboarded one company in South India with lending expected to commence soon. The company is also diversifying its product offerings, looking to expand cross-sell into small-ticket mutual funds and insurance, aiming to monetize the larger base of employees who do not actively use EWA.

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