Dar Credit & Cap Q4 FY26 Earnings Analysis

- Dar Credit expects to reach a loan book (AUM) of INR 230-235 crores by Q4 FY26 (March 2026). - Projected AUM for FY27 is over INR 300 crores, indicating strong growth in loan disbursements. - Monthly disbursement target is INR 14-15 crores, set internally to achieve overall growth goals. - Borrowings expected to increase by around INR 100 crores to approximately INR 250 crores by FY27 to support growth. - PAT growth is expected to continue with margins remaining healthy, aiming for INR 18-19 crores PAT in FY27. - Focus on expanding secured MSME loans and niche personal loans to municipal employees in Bihar, Jharkhand, and Rajasthan. - The company is well-capitalized (CAR ~44%) with ample borrowing headroom to fuel growth without immediate equity raises.

- FY27 AUM expected to cross INR 300 crores, up from INR 202 crores currently. - Disbursement goal: INR 230-235 crores by Q4 FY26 and over INR 300 crores by March 2027. - Projected borrowing to increase by around INR 100 crores to about INR 250 crores in FY27. - Management expects PAT growth to continue in FY27 with improved margins and profitability. - Earnings Per Share (EPS) projected to increase significantly in FY27. - Current PAT margins at 20% expected to sustain or improve due to stable cost of funds and disciplined risk management. - No equity fundraise planned for FY26; growth to be funded through debt (NCDs, PSU banks, NBFC borrowings). - Expansion focused on Bihar, Jharkhand, and Rajasthan for secured and unsecured MSME lending to drive growth.

- No explicit mention of current or planned capital expenditure (capex) or strategic investments in the earnings call. - The company is focusing on expanding its loan portfolio, especially in secured MSME loans and personal loans to municipal employees. - Expansion plans include growing presence in Bihar, Jharkhand, and Rajasthan through new branches targeting secured and unsecured MSME lending. - For funding growth, the company relies on borrowing (current borrowing at INR159 crores with headroom up to INR500 crores) including PSU banks and listed NCDs. - No immediate plans for equity fund raising; well-capitalized with a Capital Adequacy Ratio of ~44%. - Technological investment includes developing an in-house app-based solution for digital underwriting and operations, currently in trial phase, going live soon. - Management prioritizes operational efficiency and digital transformation over new product launches or major capital investments.

- No immediate plans for equity fundraising in FY26 as the company is well capitalized with a Capital Adequacy Ratio (CAR) of around 43% and a net worth of INR 100+ crores. - The company currently has ample borrowing capacity, with borrowings at approximately INR159 crores and a headroom to borrow up to INR500 crores considering a 5:1 leverage. - Fundraising efforts are focused on raising debt primarily through listed Non-Convertible Debentures (NCDs) worth around INR100-125 crores planned over the coming years. - Recent NCD issuances of about INR20 crores at coupon rates of 12-12.5% have helped reduce borrowing costs compared to bank loans. - The management is also pitching to PSU banks and large NBFCs for fresh debt to support growth and expansion into new geographies such as Bihar, Jharkhand, and Rajasthan. - Equity raises may be considered in the future if needed for expansion, but none are planned currently.

The transcript does not specifically mention current or expected order book or pending orders for Dar Credit and Capital Limited. However, related insights on loan book and disbursement plans include: - Current loan book (AUM) around INR 202-213 crores as of Q3 FY26. - Target to reach INR 230-235 crores by Q4 FY26. - Planned growth to over INR 300 crores AUM by FY27. - Average monthly disbursement planned at INR 14-15 crores. - Expansion focused on Bihar, Jharkhand, and Rajasthan to boost MSME and secured lending. - Borrowing planned to increase to INR 250 crores by FY27 to support growth. - No specific mention of order book or pending orders typical to product sales; growth relates to loan disbursement.