Satin Creditcare

    SATIN
    Financial Services·29 Jan 2026
    Management Summary

    Satin Creditcare reported a strong Q3 FY26, marked by robust consolidated AUM growth of 10% YoY to INR 13,341 crores and a significant 404% YoY increase in consolidated PAT to INR 72 crores. The company maintained healthy asset quality with PAR 90 at 3.3% and an overall collection efficiency of 98%, while also expanding its branch network by 452 since Q3 FY25. Strategic diversification continued with the acquisition of a 51% stake in QTrino Labs by Satin Technologies and capital infusion into Satin Finserv.

    Highlights5
    • Consolidated AUM grew 10% YoY to INR 13,341 crores.
    • Consolidated PAT for Q3 FY26 stood at INR 72 crores, up 404% YoY.
    • Consolidated Revenue for Q3 FY26 was INR 753 crores, reflecting 10% YoY growth.
    • Consolidated ROA and ROE stood at 2.22% and 10.82% respectively.
    • Maintained strong asset quality with PAR 90 at 3.3% on a standalone basis and overall collection efficiency at 98%.
    Concerns Noted2
    • High liquidity maintained on the balance sheet, which management acknowledged could negatively impact ROA, but was a deliberate strategy due to industry headwinds.
    • Subsidiaries currently have lower ROAs due to being in expansion mode.
    What Changed2

    vs Q4 FY26

    Guidance items6 → 5 (-1)Risks discussed1 → 3 (+2)
    Numbers6

    Key Financials

    MetricValueYoY
    Consolidated AUM₹13K Cr+10.0% YoY
    Consolidated Disbursements (9M FY26)₹8.1K Cr+7.0% YoY
    Consolidated Revenue (Q3 FY26)₹753 Cr+10.0% YoY
    Consolidated PAT (Q3 FY26)₹72 Cr+404.0% YoY
    Consolidated NIM (Q3 FY26)14.25%
    Consolidated ROA (Q3 FY26)2.22%

    Segment Breakdown

    Share of AUM

    • Satin Housing Finance Limited59.2%
    • Satin Finserv40.8%
    Satin Housing Finance Limited
    ₹1.1K Cr AUM0.263 fraction YoY Growth61.96% CRAR
    Satin Finserv
    ₹759 Cr AUM0.584 fraction YoY Growth36.12% CRAR
    Trend1

    Historical Trend

    Last 4Q
    MetricLatestTrend
    Consolidated AUM(crores)15174
    Capital2

    Capital Allocation

    high confidence
    CategoryHeadline
    M&A

    QTrino Labs

    acquisition · closed

    Liquidity

    Cash ₹2,283 crores · Undrawn ₹2,206 crores

    Liquidity position remained strong with INR2,283 crores of balance sheet liquidity and INR2,206 crores of undrawn sanctions standalone.

    Promises5

    Guidance & Targets

    CategoryTargetPriority
    Credit Cost
    Credit Costaround 4%
    Medium
    Credit Cost
    Credit Costcloser to 4%
    Medium
    AUM Growth
    MFI AUM Growth10% to 15%
    High
    AUM Growth
    Subsidiary AUM Growth40%-50%
    High
    ROA
    ROAbetter than what we are right now
    Low
    Watchlist5

    Watch for Next Quarter

    #Metric
    01Liquidity levels and impact on ROA
    02Credit Cost (FY26 end)
    03CGFMU Scheme Implementation
    04Subsidiary Growth and ROA improvement
    05Expansion into Kerala
    Risks3

    Risks & Concerns

    SeverityRisk
    medium

    High liquidity impacting ROA

    Management stated they kept high liquidity due to industry headwinds, but it's not the future norm and will be brought down, implying a temporary drag on ROA.

    Analyst
    low

    Lower ROA/ROE for subsidiaries

    Subsidiaries are small and in expansion mode, opening branches and growing rapidly (40-50% YoY), leading to lower initial ROAs.

    Analyst
    low

    SIR issue in West Bengal

    Analyst raised concern about SIR issue in West Bengal, but management stated 'no concern as of now' and highlighted strong collection efficiency of 94% in the state.

    Analyst
    Q&A8

    Q&A Highlights

    Narrative2m

    Detailed Narrative

    6 chapters
    01

    Strong Financial Performance in Q3 FY26

    Satin Creditcare reported a robust Q3 FY26, with consolidated AUM growing 10% year-on-year to INR 13,341 crores. Consolidated PAT saw a significant increase of 404% YoY, reaching INR 72 crores, while consolidated revenue grew 10% YoY to INR 753 crores. The company achieved a consolidated ROA of 2.22% and ROE of 10.82%, marking its 18th consecutive profitable quarter.

    02

    Asset Quality and Risk Management

    The company maintained strong asset quality, with PAR 90 levels improving to 3.3% (INR 287 crores) on a standalone basis. On-book provisions stood at INR 272 crores, representing 3.2% of the portfolio, well above RBI requirements of INR 141 crores. Overall collection efficiency was reported at 98%, with X Bucket collection efficiency at 99.8%, indicating robust credit discipline and effective field execution.

    03

    Strategic Diversification and Subsidiary Growth

    Satin Creditcare continued its diversification strategy, with subsidiaries showing strong growth. Satin Housing Finance Limited's AUM reached INR 1,101 crores, growing 26.3% YoY, while Satin Finserv's AUM was INR 759 crores, up 58.4% YoY. The group also expanded its technological footprint with Satin Technologies acquiring a 51% stake in QTrino Labs, a deep tech cybersecurity company.

    04

    Funding and Liquidity Position

    The company's liquidity position remained strong, with INR 2,283 crores of balance sheet liquidity and INR 2,206 crores of undrawn sanctions on a standalone basis. Foreign funding now constitutes approximately 22% of the total funding mix (15% overseas, 7% DFI), and management confirmed that all foreign currency exposures are fully hedged, contributing to a stable cost of funds.

    05

    Cautious Growth and Geographic Expansion

    Management outlined a strategy of cautious growth for the MFI segment, targeting 10-15% AUM growth, while subsidiaries are expected to continue their rapid 40-50% YoY growth. The distribution network expanded to 1,987 branches across 26 states and 5 union territories, with 452 new branches added since Q3 FY25. The company is also strategically expanding into new geographies, including Kerala, with operations expected to commence in the next couple of months.

    06

    Credit Cost Outlook

    The company is targeting an improvement in credit costs for FY26, aiming to end the year 'probably at around 4%', down from 4.6% in FY24-25. Management expressed confidence that credit costs would continue to decline further in the future, supported by tighter underwriting, improved collections, and deeper customer engagement.

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