| Net Profit Q2 | ₹125.12 Cr100.4% YoY Growth |
|---|---|
| AUM | ₹9,317 Cr68.4% YoY Expansion |
| Market Cap | ₹6,467 CrBanking & Finance |
| ROE TTM | 21.65%Efficient Capital Use |
Key highlights
- Consolidated net profit for Q2 FY27 reached ₹125.12 crore, a 100.4% increase over the previous year
- Assets Under Management (AUM) expanded to ₹9,317 crore, up 68.4% YoY
- Management raised FY27 AUM growth guidance to 60%+ from the earlier 40% target
- Average cost of borrowing fell to 13.76%, a reduction of 70 basis points sequentially
- Gold loan exposure successfully reduced to sub-8% to mitigate sectoral risk
Record Growth Triggers Guidance Upgrade
OnEMI Technology Solutions reported significant margin expansion and top-line growth for the quarter ended September 30, 2026. Total income rose 43% YoY to ₹740 crore, while net profit doubled to ₹125.12 crore, beating sector-wide averages. The company's Return on Average Equity (ROE) stood at 21.65%, supported by an improving Return on Average Assets (ROA) of 5.78%.
Driven by strong momentum in the first half of the year, management has aggressively raised its AUM growth guidance for FY27. The target is now set at over 60%, a substantial increase from the previous guidance of 40% plus, reflecting high confidence in the credit cycle and operational efficiency.
Strategic Pivot to High-Quality Credit and Segment Diversification
- Shifted focus toward borrowers with Bureau scores above 760, which now account for 24.8% of the book
- Reduced lending to over-leveraged customers, with loans to those holding three or more live loans falling by 35% YoY
- Loan Against Property (LAP) segment turned profitable in Q2, achieving breakeven one quarter ahead of previous estimates
- Expanded LAP operations to 107 branches across 9 states, serving 40% of existing customers
- Lowered credit costs to 6.2% of average AUM, down from 9.3% in the same period last year
- Maintained a conservative Stage 3 coverage ratio of 84.6% to buffer against potential volatility
Prioritizing Discipline Over Aggressive Ambition
We believe growth without profitability is expensive ambition, while profitability without growth is comfortable stagnation. The real achievement is to deliver both, not at the expense of tomorrow, but on the strength of what we build today.
Capital Infusion Strengthens Balance Sheet
The company recently bolstered its capital base through an ₹832.20 crore preferential equity allotment completed on October 23, 2026. This infusion, involving 2.65 crore shares, has positioned the company to further scale its NBFC subsidiary, Si Creva Capital Services. These funds are being utilized to reduce high-cost debt and invest in proprietary AI-driven underwriting.
Borrowing costs have already declined from 14.45% to 13.76% sequentially. The company plans to pass a portion of these savings to its high-quality customers to drive further acquisition of low-risk borrowers, maintaining a virtuous cycle of lower costs and reduced risk.
| Date | Announcement | Amount |
|---|---|---|
| 28 Oct 2026 | Q2 FY27 Unaudited Consolidated Net ProfitSource: crisp.scoutquest.in | ₹125.12 Cr |
| 30 Jul 2026 | Management guidance on Q1 FY27 earnings call: FY27 AUM growth to exceed 40%, credit cost reduction of 15%, LAP breakeven by Q3Source: youtube.com | – |
| 29 Jul 2026 | Q1 FY27 Unaudited Consolidated Net ProfitSource: sahi.com | ₹95.08 Cr |
| 27 May 2026 | Q4 FY26 Audited Consolidated Net ProfitSource: stockscans.in | ₹82.18 Cr |
What to watch next
- Completion of ₹624.15 crore rights issue into subsidiary Si Creva Capital by December 31, 2026
- Potential credit rating upgrade following two successful fundraises in FY27
- Further reduction in credit costs with a target of 15% plus YoY decline by year-end
- Next quarterly earnings update expected in late January 2027
“Our machine learning models continuously flag early signs of stress and the segments where exposure needs to be cut. The objective is simple: act before the stress reaches the balance sheet.”
“In the next six to 10 months, our old debt which was raised at a time when we were rated lower will drop off and all of the new borrowings will kick in, further reducing costs.”
| Share price | ₹316.1 |
|---|---|
| Market capitalisation | ₹6,467.66 Cr |
| Revenue (annual) | ₹2,179.25 Cr |
| Net profit (annual) | ₹281.45 Cr |
| Revenue (latest quarter) | ₹731.81 Cr+9.31% vs previous quarter |
| Net profit (latest quarter) | ₹125.12 Cr+31.60% vs previous quarter |
| P/E (TTM) | 17.04×Sector 19.7× |
| Promoter holding | 20.42%-4.38% QoQ |
| FII holding | 9.95%Current quarter |
Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.
Exchange filing by OnEMI Technology Solutions Ltd announcing Q2 FY27 consolidated financial results and management transcript. Market figures from a third-party data provider.
