Satin Creditcare Q2FY26: PAT Rs 53 cr, income up 21%

Q2FY26 result snapshot

Satin Creditcare Network, a microfinance-focused NBFC-MFI, announced its Q2FY26 results, reporting steady business momentum despite a challenging operating environment for the sector. The company said it maintained disbursement momentum at Rs 2,421 crore in Q2FY26, translating into 6.41% year-on-year growth. On a consolidated basis, it reported profit after tax (PAT) of Rs 53 crore, which the management said represented 19% year-on-year growth.

Alongside profit, the company highlighted growth across key income lines. It reported revenue of Rs 793 crore, up 21% YoY, supported by what it described as healthy credit demand and prudent asset management. Net Interest Income (NII) stood at Rs 449 crore, rising 15% YoY. The company also reported a Net Interest Margin (NIM) of 14%, improving by 90 basis points YoY.

What management said

HP Singh, Chairman and Managing Director of Satin Creditcare Network, said the company delivered another quarter of “resilient performance and consistent profitability” in Q2FY26. He pointed to the consolidated PAT of Rs 53 crore and stated that revenue growth was supported by credit demand and asset management. Singh also highlighted the NII growth and the improvement in NIM.

The management commentary focused on the combination of volume growth and margin performance. In microfinance, margin movement is closely watched because it reflects funding cost, portfolio yield, and collection behaviour. Satin Creditcare’s Q2FY26 disclosures emphasised margin expansion year-on-year, alongside steady disbursement growth.

Quarterly income trend in reported data

The company’s disclosed quarterly table shows total income movement across five quarters (as presented in the source data), with the most recent quarter in the table being Jun 2025.

Separately, the provided data also listed PAT figures across quarters, including Rs 45.10 crore (Jun 2025), Rs 21.89 crore (Mar 2025), Rs 14.26 crore (Dec 2024), Rs 44.69 crore (Sep 2024), and Rs 105.28 crore (Jun 2024), along with percentage changes where available.

Cost structure disclosures for FY25

For the year ended March 31, 2025, the company disclosed that it spent 40.41% of its operating revenues on interest expenses and 22.6% on employee cost. These two lines are material for lenders, as interest expense reflects funding conditions while employee cost often tracks branch footprint, underwriting capacity, and collection intensity.

Such cost ratios also provide context when investors compare profitability across cycles. In periods of sector stress, operating expenses and credit costs can rise, affecting headline profitability even when income grows.

FY25: higher income, lower profit amid headwinds

In its FY25 commentary, Satin Creditcare stated that profit before tax declined 59% to Rs 232.98 crore due to “sector headwinds” that led to higher operating expenses and credit cost. It reported that net profit fell 49% to Rs 216.56 crore for the year ended March 31, 2025, compared with Rs 422.84 crore in the year ended March 31, 2024.

On the income side, total income increased to Rs 2,376.76 crore in FY25, from Rs 2,050.65 crore in FY24, which the company attributed mainly to an increase in AUM. It also reported that loan disbursements during FY25 were Rs 9,836.61 crore.

AUM performance against an industry contraction

Satin Creditcare said that while the industry experienced a de-growth of 13.5% during FY25, the company achieved AUM growth of 6.8% YoY. It reported AUM of Rs 11,316.30 crore as of March 31, 2025.

This comparison matters because AUM growth during a broader contraction can signal stable sourcing, repeat customer behaviour, or better collections. However, the company’s FY25 disclosures also make clear that profitability can still decline when sector-level stress lifts expenses and credit costs.

Q4 FY25 base: profitability and key ratios

In a separate FY25 quarter disclosure dated May 20, 2025, the company reported strong Q4 FY25 numbers. On a standalone basis, Satin Creditcare said AUM was Rs 11,316 crore, up 6.8% YoY, and it posted PAT of Rs 217 crore and PPOP of Rs 736 crore. It also reported RoA of 2.07% and RoE of 7.86%, supported by net worth of Rs 2,843 crore.

On a consolidated basis for Q4 FY25, it reported AUM of Rs 12,784 crore, PAT of Rs 186 crore, and NIM of 12.61%. It also disclosed collection efficiency of ~99.8% for the 0 days past due portfolio in March 2025 and credit costs of 4.6%, stated to be within the guided range.

Subsidiary updates mentioned in disclosures

The company said its subsidiaries also reported growth. Satin Housing Finance Ltd. reported a 22% YoY AUM increase to Rs 920 crore, while Satin Finserv Ltd. scaled its MSME book to Rs 516 crore, marking a 58% jump.

In additional disclosures, Satin Housing Finance Ltd. reported net worth of Rs 182.56 crore as of March 31, 2025, total income of Rs 126.62 crore, and profit before tax of Rs 10.58 crore for FY25. Satin Finserv Ltd. reported SME disbursements of Rs 347.90 crore in FY25. Another entity referenced in the data reported total income of Rs 0.85 crore and PAT of Rs 0.06 crore for FY25.

Stock move and valuation metrics cited

The provided market snapshot stated that Satin Creditcare shares rose 6.87% over one week. It also listed valuation metrics with PE at 13.78 and PB at 0.68.

Why these Q2FY26 disclosures matter

For microfinance lenders, investors typically track three parallel threads: growth (disbursements and AUM), income quality (NII and NIM), and stress indicators (credit costs, collections, and profitability). In Q2FY26, Satin Creditcare’s disclosures pointed to higher revenue, higher NII, and an improved NIM, while maintaining disbursement momentum.

At the same time, the FY25 commentary provides context that sector headwinds can pressure profitability even when total income rises. As a result, Q2FY26’s stated profitability and margin improvement are likely to be read alongside the company’s earlier disclosures on credit costs, collections, and operating expense intensity.

Conclusion

Satin Creditcare’s Q2FY26 update highlighted Rs 53 crore consolidated PAT, Rs 793 crore revenue, Rs 449 crore NII, and 14% NIM, alongside Rs 2,421 crore disbursements. The company’s earlier FY25 disclosures also flagged that sector headwinds had raised costs and reduced annual profitability, even as income and AUM grew. Investors will continue to track future quarterly updates for confirmation on portfolio quality, credit costs, and whether margin improvement sustains alongside growth.