Emerald Finance MSME AUM reaches Rs 131 crore, up Rs 27.61 crore

Emerald Finance’s micro, small and medium enterprises (MSME) assets under management (AUM) reached Rs 131 crore in Sept-26, an increase of Rs 27.61 crore from Rs 103.39 crore in Dec-25. Emerald also disclosed cumulative MSME disbursements above Rs 131 crore, an 18% average lending rate and a Rs 40 lakh average ticket size.

What was Emerald’s MSME AUM in Sept-26?

Emerald’s MSME AUM was Rs 131 crore in Sept-26. The presentation reports the amount as Rs 13,100 lakh, which converts to Rs 131 crore, for its unsecured working-capital lending business serving MSMEs across India. It separately reports cumulative disbursements of more than Rs 131 crore.

Emerald’s AUM increased by Rs 27.61 crore over the Dec-25 to Sept-26 period. The source describes the product as unsecured working-capital finance, but it does not provide a geographic, industry, borrower-age or customer-concentration split for the Rs 131 crore portfolio.

The Rs 131 crore AUM is an outstanding portfolio measure, whereas cumulative disbursements represent lending activity accumulated over time. Emerald gives the cumulative-disbursement figure only as above Rs 131 crore, rather than a precise number or quarterly disbursement series, so the disclosed information does not quantify originations for Dec-25, Mar-26, June-26 or Sept-26.

How did Emerald’s MSME book change from Dec-25 to Sept-26?

Emerald’s MSME AUM rose in each of the three reported intervals, from Rs 103.39 crore in Dec-25 to Rs 111.06 crore in Mar-26, Rs 125.15 crore in June-26 and Rs 131 crore in Sept-26. The sequence shows a higher outstanding balance at every reported date across the nine-month period.

The largest absolute addition was Rs 14.09 crore between Mar-26 and June-26. That followed an increase of Rs 7.67 crore from Dec-25 to Mar-26, while the increase from June-26 to Sept-26 was Rs 5.85 crore. The quarterly additions therefore declined after the June-26 step-up, although Sept-26 remained the highest reported AUM level.

These changes describe AUM rather than a complete measure of new lending. Emerald’s disclosure of more than Rs 131 crore in cumulative disbursements does not separate fresh lending, repayments, renewals or loan closures, so it does not establish which components produced the Rs 27.61 crore rise in AUM from Dec-25 to Sept-26.

What are Emerald’s MSME lending rate and loan size?

Emerald reports an 18% average lending rate and a Rs 40 lakh average ticket size for the MSME business. These metrics are presented with the Rs 131 crore-plus cumulative-disbursement figure and the Sept-26 AUM of Rs 131 crore for the unsecured working-capital operation.

The Rs 40 lakh figure is an average ticket size, not a disclosed minimum or maximum loan amount. Emerald says its financing is flexible and customised for diverse business needs, but it does not state loan-tenure ranges, repayment schedules, the number of MSME borrowers, or the distribution of loan sizes around the Rs 40 lakh average.

Emerald also cites customer relationships, repeat business, credit appraisal and risk management as features of its MSME lending approach. Those are operating mechanisms described by management; the Sept-26 material does not disclose a non-performing asset ratio, collection rate, write-off amount, provisioning balance or delinquency data for the Rs 131 crore AUM.

How does the MSME portfolio compare with Emerald’s wider performance?

Emerald’s consolidated revenue increased from Rs 5.72 crore in Q3 FY25 to Rs 10.07 crore in Q2 FY27, while profit after tax (PAT) increased from Rs 2.48 crore to Rs 5.31 crore over the same eight-quarter series. The presentation labels these changes as 1.76 times for revenue and 2.14 times for PAT.

Interest income rose from Rs 2.65 crore in Dec-24 to Rs 4.94 crore in Sep-26. Over those dates, earned wage access (EWA) processing-fee income increased from Rs 11 lakh to Rs 1.19 crore, while distribution income increased from Rs 2.96 crore to Rs 3.94 crore, showing that Emerald reports income streams beyond MSME lending.

The MSME AUM series runs from Dec-25 to Sept-26 and therefore overlaps only partly with the Q3 FY25 to Q2 FY27 financial series. Emerald does not allocate the Rs 4.94 crore interest income in Sep-26 to MSME loans, nor does it state the MSME business’s contribution to Q2 FY27 PAT of Rs 5.31 crore. The available disclosure supports a comparison of concurrent expansion, not a direct attribution of revenue or profit to the Rs 131 crore book.

What funding and distribution relationships does Emerald report?

Emerald reports Rs 30.73 crore of borrowings, consisting of Rs 14.37 crore from banks and Rs 16.36 crore from non-banking financial companies (NBFCs). Banks accounted for 46.76% of the borrowing mix and NBFCs for 53.24%, while the funding-profile page lists three banks and 18 NBFCs as lenders.

The Rs 30.73 crore borrowing figure is presented separately from the Sept-26 MSME AUM of Rs 131 crore. Emerald does not state what portion of borrowings supports the unsecured MSME portfolio, whether any particular lender funds it, or the borrowing cost associated with that portfolio.

Emerald also says it works with more than 50 financial institutions across lending and distribution. Its EWA and cross-sell operation reported Rs 30.50 crore of monthly activity, 270 corporates and 5,540 monthly active users. The presentation describes EWA as an entry point and distribution as an advantage, but does not quantify cross-selling from those 270 corporates or 5,540 users into MSME loans.

Conclusion

The disclosures show that Emerald expanded its unsecured MSME working-capital AUM from Rs 103.39 crore in Dec-25 to Rs 131 crore in Sept-26. The portfolio’s disclosed scale sits alongside an 18% average lending rate, a Rs 40 lakh average ticket and cumulative disbursements above Rs 131 crore, while company-wide revenue, PAT and interest income also increased across their reported periods.

The next disclosures to watch are the composition and credit performance of the Rs 131 crore book, including borrower count, collections, delinquencies, repayments and quarterly originations. Emerald has not disclosed an MSME AUM target or a dated growth plan in the supplied material, leaving those operating details unresolved.