Kissht Q1 FY27: Growth after listing, with risk discipline at the centre

Kissht (OnEMI Technology Solutions Limited) entered Q1 FY27 as a newly listed company, having listed on the NSE and BSE in May 2026. The quarter ended June 30, 2026 shows that the company is trying to balance two priorities at once: sustain high growth in a mass-market credit franchise while tightening risk controls and improving capital efficiency.

On reported financials, consolidated total income for Q1 FY27 came in at ₹677 crore, up 45% year on year. Profit after tax grew to ₹95 crore, up 59% year on year. Scale continued to expand quickly, with AUM at ₹8,001 crore as of June 2026, up 61% year on year and 13% sequentially.

Management’s messaging across the presentation and earnings call was consistent. Growth is being driven by a technology-led underwriting and collections stack, but the company is also willing to slow down in select geographies and customer pockets where early warning indicators look unfavourable. In the quarter, this positioning was supported by relatively range-bound asset quality metrics and a decline in credit cost as a share of average AUM.

AUM growth and the shift in mix

Kissht’s book remains anchored in unsecured personal loans, but there is a gradual shift under way in two directions.

First, the company is scaling secured lending through its Loan Against Property (LAP) product. As of June 2026, LAP AUM stood at ₹617 crore, representing 7.7% of total AUM, up from 7.3% in March 2026 and 2.5% in June 2025. The company operates 101 LAP branches across 8 states and a UT. Management emphasised that this LAP franchise is intended to be technology-enabled rather than branch-heavy in the traditional sense, with model-based underwriting and AI-led collateral valuation supported by legal and technical checks.

Second, the company is increasing the share of off-book lending. As of June 2026, off-book AUM was ₹4,284 crore, or 53.6% of total AUM, compared with 49.7% in March 2026. The company described three off-book partnership structures: 100-0 arrangements, co-lending where 5-20% may be retained on the company’s books, and direct assignment. Off-book growth reduces balance sheet leverage needs, but it also changes revenue recognition because economics are earned as service fees rather than interest spreads.

Financial summary (Q1 FY27)

Note: AUM is as of period end; income statement is quarterly. Asset quality metrics pertain to the subsidiary NBFC and are on-book.

Risk metrics and what management is watching

The company’s asset quality remained broadly stable in Q1 FY27. Gross NPA (Stage 3) was 2.25% and net NPA was 0.36% as of June 2026. Collection efficiency up to DPD 30 was 96.82%. Stage 2 assets were 3.15% at quarter end, which management described as a seasonal Q1 pattern based on historical trends.

A notable disclosure in the earnings call was the use of geographic pausing as an active risk tool. Management stated that out of roughly 11,000 pin codes that contribute about 98% of business, the company had paused disbursements in 450 pin codes earlier based on its early warning system. As signals improved, it restarted lending in about 180 of those pin codes, with around 270 still paused at the time of the call.

The strategic framing is that headline industry metrics can appear stable while stress builds in specific pockets. Management specifically referenced industry-wide stress in small-ticket loans and borrowers carrying exposure across multiple lenders. Within Kissht’s own portfolio, management claimed that vintages since December 2025 are performing better than the prior year, and reiterated guidance of a 15% reduction in credit cost.

Profitability, margins, and the deliberate trade-off

Kissht reported RoAAUM of 5.05% and RoAE of 21.20% for Q1 FY27. In the RoAAUM bridge, operating expenses declined to 18.0% of average AUM from 19.9% in Q4 FY26. Credit cost was reported at 6.80% of average AUM for the quarter, down from 7.02% in Q4 FY26 and 8.85% in Q1 FY26.

At the same time, management stated that total income as a share of average AUM fell sequentially, and positioned this as a deliberate strategy. Two drivers were highlighted.

One, the company is targeting a higher share of higher-quality customers, and pricing them lower. Two, as the off-book share rises, the reported revenue margin reduces because off-book economics are earned as a servicing fee rather than interest spread.

Management’s core argument is that a lower yield can still support a 5% RoA if it is accompanied by lower impairments, lower funding cost, and operating leverage. On the call, the CFO indicated that incremental borrowing in Q1 FY27 was done at a loaded cost of about 12.9%, and the company expects cost of borrowing to trend down particularly in H2 FY27.

Technology stack as an operating advantage

The presentation spends substantial time on the underwriting and collections stack, positioning it as a central differentiator.

The company described its underwriting as AI and ML-led, using 7,200 plus signals and a model evolution that now includes transformer-based approaches. It disclosed an AUC of 74% for its latest model version in 2026, up from 66% in 2023. It also claimed that its internal risk score provides materially higher risk separation than bureau score in its target segment.

On collections, the company highlighted its Automated Collections System, with more than 95% collections handled in-house, 99.2% digital collection share, and large field and tele-calling teams. It also described early-bucket voice agents recovering at more than 80% of human recovery rates.

These disclosures matter because they frame the company’s ability to scale while managing delinquencies. The management narrative is that technology investments are not an add-on. They are the mechanism through which underwriting and collections discipline is maintained as volumes grow.

Capital position and liquidity comfort

Post IPO, capitalisation strengthened significantly. Net worth stood at ₹2,245 crore as of June 2026, and the capital adequacy ratio for the NBFC subsidiary was 40.19%. Debt to equity declined to 0.91x. The company also disclosed a positive ALM surplus across all maturity buckets in its ALM schedule.

This capital position supports both growth and flexibility. It also reduces near-term dependence on incremental borrowing, which management noted in the context of Q1 being a period with limited new debt raised.

Takeaways

Q1 FY27 shows Kissht trying to establish its public market identity around two themes: growth with discipline, and technology-led execution.

The company is scaling quickly, with AUM growth of 61% year on year and PAT growth of 59%. At the same time, it is taking visible risk actions such as pausing lending in selected pin codes and tightening underwriting in certain borrower profiles.

The next few quarters will likely be judged on whether three claimed levers translate into stable returns at scale: operating leverage, a lower cost of funds, and continued reduction in credit costs, even as the business mix shifts further towards off-book and secured LAP. Management reiterated it is on track versus FY27 guidance, and also suggested it expects to over-deliver on its previously stated 12-month AUM growth expectation.