OnEMI Technology Solutions Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript OnEMI Technology Solutions Ltd filed with BSE on 04 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Kissht reported its first earnings call as a listed company, with AUM growing 73% year-on-year and 19% quarter-on-quarter to Rs 7,066 crore in FY26. Full year PAT grew 75% year-on-year to Rs 281 crore, while GNPA improved from 2.89% to 2.12% and collection efficiency remained above 97%. Management outlined FY27 guidance of AUM growth above 40%, a return on average AUM of 4.5%-5%, and a reduction in impairment costs of 10%-15%.
Numbers mentioned
AUM: ₹ 7,066 crore (FY26)
p. 4
“AUM grew 73% year-on-year and 19% quarter-onquarter to ₹ 7,066 crore.”
Ranvir Singh, page 4 of the filed PDF · View the filing
PAT: ₹ 281 crore (FY26)
p. 4
“PAT grew 75% year-onyear to ₹ 281 crore.”
Ranvir Singh, page 4 of the filed PDF · View the filing
Total income: ₹ 2,209 crore (FY26)
p. 4
“For FY26, total income reached ₹ 2,209 crore, up 63% year-on-year.”
Ranvir Singh, page 4 of the filed PDF · View the filing
Pre-provisioning operating profit: ₹ 836 crore (FY26)
p. 4
“Preprovisioning operating profit grew 54% to ₹ 836 crore”
Ranvir Singh, page 4 of the filed PDF · View the filing
Return on average assets: 5% (FY26)
p. 4
“We delivered a return on average assets of 5% and return on average equity of 24%.”
Ranvir Singh, page 4 of the filed PDF · View the filing
GNPA: 2.12% (FY26)
p. 4
“GNPA reduced from 2.89% to 2.12%, a year-on-year improvement of 77 basis points.”
Ranvir Singh, page 4 of the filed PDF · View the filing
Collection efficiency: above 97% (FY26)
p. 4
“Collection efficiency remained above 97%.”
Ranvir Singh, page 4 of the filed PDF · View the filing
Net NPA: 0.29% (FY26)
p. 4
“Net NPA was contained at 0.29%.”
Ranvir Singh, page 4 of the filed PDF · View the filing
AUC of underwriting model: 74%
p. 5
“reaching an AUC of 74% on our latest model, up from 66% in 2023”
Ranvir Singh, page 5 of the filed PDF · View the filing
FOIR for new customers: 30% (FY26)
p. 5
“the new customers acquired in FY26 are at FOIR. FOIR stands for ‘Fixed Obligation Income Ratio’ of 30% - down from 34% the previous year.”
Ranvir Singh, page 5 of the filed PDF · View the filing
First EMI T90: 0.7% (FY26)
p. 5
“The first EMI T90, has improved significantly from 1.5% to 0.7% in FY26.”
Ranvir Singh, page 5 of the filed PDF · View the filing
Collection efficiency (Q4, DPD-30 basis): 97.15% (Q4 FY26)
p. 6
“closing FY26 at 97.01% on a DPD-30 basis, and improving to 97.15% in Q4”
Ranvir Singh, page 6 of the filed PDF · View the filing
Bounce rate: 13.1% (FY26)
p. 6
“our bounce rate remains strong at 13.1% and stable across the year”
Ranvir Singh, page 6 of the filed PDF · View the filing
Stage-2 book: 2.4% (FY26)
p. 6
“the movement in our Stage-2 book, which reduced from 3.5% to 2.4%.”
Ranvir Singh, page 6 of the filed PDF · View the filing
Stage-3 ECL coverage: 86.2% (March 2026)
p. 6
“As of March 2026, our Stage-3 ECL coverage stands at 86.2%.”
Ranvir Singh, page 6 of the filed PDF · View the filing
Stage-2 ECL coverage: 75.6% (March 2026)
p. 6
“Stage2 ECL coverage improved sharply from 59.2% in March 2025 to 75.6% in March 2026.”
Ranvir Singh, page 6 of the filed PDF · View the filing
Management overlay: ₹ 136 crore
p. 6
“we carry a management overlay of ₹ 136 crore, maintained as a buffer against unforeseen stress.”
Ranvir Singh, page 6 of the filed PDF · View the filing
LAP AUM: ₹ 518 crore
p. 7
“LAP AUM stands at nearly ₹ 518 crore, across 98 branches in 8 states, contributing 7.3% of total AUM.”
Ranvir Singh, page 7 of the filed PDF · View the filing
On-book AUM: ₹ 3,556 crore
p. 7
“On-book AUM stands at ₹ 3,556 crore, supported by 45+ lending partners, where cost of borrowing has been between 11.5% and 14.25%.”
Ranvir Singh, page 7 of the filed PDF · View the filing
Off-book AUM: ₹ 3,510 crore
p. 8
“Off-book AUM stands at ₹ 3,510 crore, where we provide FLDG up to 5%, which is the First Loss Default Guarantee.”
Ranvir Singh, page 8 of the filed PDF · View the filing
Capital adequacy: 25.3%
p. 8
“Capital adequacy remains comfortable at 25.3%.”
Ranvir Singh, page 8 of the filed PDF · View the filing
Net worth: ₹ 1,343 crore
p. 8
“Net worth has grown to ₹ 1,343 crore - 2.4x increase over 3 years, almost entirely through retained earnings and organic profitability.”
Ranvir Singh, page 8 of the filed PDF · View the filing
Impairment cost as % of average AUM: 8.2% (FY26)
p. 8
“our impairment cost as a percentage of average AUM has fallen from 9.7% in FY25 to 8.2% in FY26 and in Q4 alone, it stood at 7%.”
Ranvir Singh, page 8 of the filed PDF · View the filing
Disbursal: ₹ 3,954 crores (Q4 FY26)
p. 17
“the disbursal in Q4 was ₹ 3,954 crores, it is in the fact sheet and the Q3 of FY26 was ₹ 3,113.”
Krishnan Vishwanathan, page 17 of the filed PDF · View the filing
Portfolio yield: 30 or 31% (Q4 FY26)
p. 15
“our portfolio yield is close to about 30 or 31% in Q4.”
Krishnan Vishwanathan, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
AUM growth — north of 40% · FY27
stated firmly by Ranvir Singh
p. 8
“We expect to grow at north of 40% in AUM, with disciplined asset quality and calibrated risk selection, while secured business scale-up is also expected to be strong.”
Ranvir Singh, page 8 of the filed PDF · View the filing
Gross NPA — below 2.25% · FY27
stated firmly by Ranvir Singh
p. 9
“On asset quality, we are targeting gross NPA below 2.25%, year-on-year reduction in impairment costs of 10%-15%, and continued improvement in Stage-1 mix.”
Ranvir Singh, page 9 of the filed PDF · View the filing
Return on average AUM — 4.5%-5% · FY27
stated firmly by Ranvir Singh
p. 9
“On profitability, we are targeting a return on average AUM in the range of 4.5%-5%, which entails a return on average equity in the range of 19-21%.”
Ranvir Singh, page 9 of the filed PDF · View the filing
Cost of borrowing — 200 bps improvement already seen, further 100-150 bps possible with upgrade · FY27-FY28
stated conditionally by Krishnan Vishwanathan
p. 10
“if we are able to get one more upgrade, we can possibly see later part of FY27, but more so in the year FY28, a further 100 to 150 basis point reduction in cost of borrowing.”
Krishnan Vishwanathan, page 10 of the filed PDF · View the filing
LAP branch expansion — at least 80 more branches · FY27
stated firmly by Ranvir Singh
p. 20
“We plan to have at least 80 more branches by end of this financial year.”
Ranvir Singh, page 20 of the filed PDF · View the filing
On-book leverage (debt-to-equity) — 2.5 to 3 · long run
stated as an aspiration by Krishnan Vishwanathan
p. 23
“we see the steady state leverage as being 2.5 to 3 on debt-to-equity.”
Krishnan Vishwanathan, page 23 of the filed PDF · View the filing
Rating upgrade — FY27
stated as an aspiration by Krishnan Vishwanathan
p. 10
“We are cautiously optimistic on getting another upgrade from both of these institutions at some point in FY27”
Krishnan Vishwanathan, page 10 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Overall growth including secured will be around 40%, and the 4.5% ROA guidance is for the overall book, with secured expected to deliver similar ROE over time.
Answered by Ranvir Singh
Asked by Prithviraj Patil: What is the target AUM mix for secured business and how will ROA flow through?
p. 10
“The overall growth, both secured and unsecured put together will be 40% odd. Despite the fact that secured is at a lesser ROA, the ROA guidance that we have given of 4.5% is for the overall book.”
Ranvir Singh, page 10 of the filed PDF · View the filing
Growth is driven by targeting high-quality customers and a large repeat customer base, with the same momentum visible in April-May.
Answered by Ranvir Singh
Asked by Kevan Faria: What is driving AUM acceleration and is momentum visible in April-May?
p. 11
“The short answer to your second question is Yes, the same momentum is visible.”
Ranvir Singh, page 11 of the filed PDF · View the filing
LTV will remain range-bound around 48% as the strategy focuses on turnaround time rather than higher leverage.
Answered by Ranvir Singh
Asked by Ayush Vaid: Is the LAP LTV of 48% conservative and will it increase?
p. 12
“We have been conservative when it comes to LTV. We don't expect it to increase significantly. It will be range bound in and around 48%.”
Ranvir Singh, page 12 of the filed PDF · View the filing
About 45% of customers have another personal loan outside Kissht, typically of larger ticket size from bigger institutions.
Answered by Krishnan Vishwanathan
Asked by Subhranshu Mishra: What proportion of active customers already hold other personal loans?
p. 13
“some 45% of our customers will have another personal loan outside of our personal loan.”
Krishnan Vishwanathan, page 13 of the filed PDF · View the filing
OPEX rose due to LAP business investment (not yet at breakeven) and a one-time investment in the field collections team.
Answered by Krishnan Vishwanathan
Asked by Devanshu Dhruv: What drove the increase in OPEX in Q4?
p. 15
“There were largely two drivers of increased OPEX in Q4. One, as you rightly mentioned, LAP is a significant driver.”
Krishnan Vishwanathan, page 15 of the filed PDF · View the filing
Portfolio yield was 30-31% in Q4, down from a slightly higher level in Q3, with further gradual decline expected from operating leverage and lower cost of funds.
Answered by Krishnan Vishwanathan
Asked by Devanshu Dhruv: What are the current portfolio yields and where are they headed?
p. 15
“our portfolio yield is close to about 30 or 31% in Q4. And you asked about last quarter, the last quarter may have been higher by, I would say, 50 to 75 basis points.”
Krishnan Vishwanathan, page 15 of the filed PDF · View the filing
Yield minus cost of borrowing is around 18-19% currently and expected to reduce over the longer term.
Answered by Krishnan Vishwanathan
Asked by Devanshu Dhruv: What spread does the company expect to maintain?
p. 17
“yield minus the cost of borrowing will basically be closer to about 18 to 19% in the near term and in the longer term, it will be, it will reduce, like I said, yes.”
Krishnan Vishwanathan, page 17 of the filed PDF · View the filing
The rise was due to a change in write-off policy from 120 to 150 days, not a change in credit quality.
Answered by Krishnan Vishwanathan
Asked by Abhi Shah: Why did GNPA rise sharply from 0.79% to 2.89% over two years?
p. 20
“the reason why the GNPA shot up from 0.79 to 2.9 is more a technicality. There was a time where we would write off earlier at 120.”
Krishnan Vishwanathan, page 20 of the filed PDF · View the filing
75% has already been infused into the NBFC subsidiary; the remaining 25% is earmarked for general corporate purposes, and the company is comfortably capitalized for FY27 growth.
Answered by Chirag Jain
Asked by Juzer Haveliwala: When will the balance 25% of IPO proceeds be deployed and when might more capital be needed?
p. 21
“we are comfortably capitalized to achieve the 40% AUM growth guidance for FY27.”
Chirag Jain, page 21 of the filed PDF · View the filing
On-book leverage is expected to settle at 2.5-3x debt-to-equity, while off-book leverage is not seen as a constraint given FLDG structure.
Answered by Krishnan Vishwanathan
Asked by Rishabh Doshi: What is the sustainable long-term leverage ratio?
p. 23
“we see the steady state leverage as being 2.5 to 3 on debt-to-equity.”
Krishnan Vishwanathan, page 23 of the filed PDF · View the filing
Risks flagged
Global macro headwinds including higher oil prices, elevated rates, geopolitical disruptions and currency volatility affecting India
p. 4
“higher oil prices, elevated rates, geopolitical disruptions, currency volatility, these are all the factors weighing on India too.”
Ranvir Singh, page 4 of the filed PDF · View the filing
Subtle shifts in repayment behavior and pockets of stress that can precede broader credit cycle deterioration
p. 4
“Economic cycles rarely announce themselves dramatically, they reveal themselves quietly through small distortions, changing repayment behavior, pockets of stress, and subtle shifts that initially appear isolated.”
Ranvir Singh, page 4 of the filed PDF · View the filing
Elevated risk in certain pin codes flagged by early-warning systems leading to paused lending
p. 5
“we reduced disbursements by approximately 7% and paused lending across approximately 450 pin codes, where early-warning systems flagged elevated risks”
Ranvir Singh, page 5 of the filed PDF · View the filing
LAP business has not yet reached breakeven and remains a drag on profitability
p. 15
“LAP continues to be a business which has not reached breakeven. And we are still probably a year or two away from being at steady state ROA.”
Krishnan Vishwanathan, page 15 of the filed PDF · View the filing
Lender partners may adjust hurdle rate expectations if unconvinced FLDG coverage is sufficient
p. 13
“Now, they may build in some expectation if they are not convinced whether the FLDG is covered or not.”
Krishnan Vishwanathan, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.