New Research Reports

ee costs (+11.2% YoY) and other operating expenses (+25.2% YoY). Net profit grew 3.2% YoY to Rs. 530cr, as tax expenses came down by 5.5% YoY. Gross stage 3 (GS3) ratio increased from 3.56% in Q1FY25 to 3.85% in Q1FY26,...

HDB Financial Services (HDB) is the seventh-largest diversified, retail-focused NBFC in India with an AUM of ~INR1.1t as of Jun’25.

Northern Arc’s ?13,351 crore loan book is strategically diversified across MSME (?2,687 crore, 20%), Consumer Finance (?3,502 crore, 26%), Rural Finance (?953 crore, 7%), and Intermediate Retail (?6,209 crore, 47%).

IndoStar Capital Finance (IndoStar) delivered a weak performance in 1QFY26, with muted disbursements and weak AUM growth, impacted by tighter stringent underwriting and seasonal factors.

Muthoot Finance (MUTH) reported robust gold loan growth at 40% YoY vs 41% YoY (FY25) led by higher gold prices and new customer additions. Overall AUM growth stood at 42% YoY vs 43% YoY (FY25). Management maintained guidance at 15% gold loan growth for FY26. We revised upwards gold loan growth to 15% vs 12% CAGR (FY25-27E) earlier. NIMs improved QoQ led by increase in yield on advances. NII grew strongly by 51% YoY led by rise in margins; PPoP grew by 63% YoY led by higher other income (up 135% YoY). Further, provisions declined by 81% YoY due to recovery from NPA accounts; thus PAT grew by 90% YoY. Stage...

We revise our rating from BUY to HOLD

We put Manappuram Finance (Manappuram) in this framework to upgrade the stock, from Hold, to BUY. We find future prospect promising with a new strategic direction for the business, which entails new management, lower MFI mix, better asset quality management and high growth and low yield in core gold business.

Manappuram Finance's gold loan portfolio grew by 22% YoY (vs 19% YoY FY25) backed by higher gold prices. However, MFI portfolio declined by 51% YoY (down 23% QoQ) due to strategy change. Thus, overall AUM de-grew by 1% YoY vs +2% YoY (FY25). We expect 13% CAGR (FY25-27E) AUM growth led by gold portfolio. MFI losses declined during the quarter due to decline in provisions. MFI asset quality improved with GNPA at 4.4% vs 8.5% QoQ led by lower slippages. Cons. NII declined by 10% YoY led by lower NIMs; PPoP declined by 33% YoY led by lower other income (down 77% YoY). Reported profit vs loss QoQ led by lower...

MGFL reported 1QFY26 consol. profit of INR1.3b. NII declined ~10% YoY to ~INR13.8b (in line) and PPoP fell ~33% YoY to ~INR6.6b (in line).

Net earnings were in line with estimates (rising 20.6% y-o-y and down 10.3% q-o-q) to Rs. 1,136 crore driven by growth in NII & other income and a lower opex run rate, however higher credit costs partially offset growth.

Q1 has seen soft disbursement growth (+6% YoY) due to low government spending/ general slowdown in economic activity. We build a growth of 15.5% in FY26, anticipating a pick-up in economic activity in H2. Calculated NIM stood largely stable at 5.2%; we expect a similar trend in FY26 supported by a lower CoF. Asset quality trends have deteriorated in the quarter (GS3/NS3 at 1.91%/ 1.08%) due to payment pressures in the MSME segment; however collection activity remains healthy. We marginally tweak our estimates and...

SUF AUM growth remains stable at 17% YoY vs 17% YoY (FY25) led by lower disbursements. Disbursements grew by 6% YoY (up 6% QoQ) during Q1FY26. Asset quality deteriorated however, continues to remain best-in-class; collections stood at 91%. NIMs (calculated) have improved (up 46bps YoY) led by increase in yields which resulted in strong NII growth (up 28% YoY). PPoP grew by 51% YoY led by higher non-interest income (up 65% YoY). PAT grew by 39% YoY led by higher provisions (up 114% YoY). Thus, RoA improved to 2.9% vs 2.85% QoQ. We have largely retained the estimates and upgraded the stock to BUY rating with TP of Rs.5,530...

CIFC's AUM growth slow down to 24% YoY vs 27% YoY led by flat YoY growth in disbursements. Management maintained guidance for 20-25% AUM growth led by 15-20% disbursement growth for longer term. NIM improved by 10bps QoQ led by lower cost of funds. We expect benefit of lower interest rate environment on account of fixed rate VF book. Asset quality deteriorated with GS3 at 3.16% vs 2.81%. NII grew by 26% YoY led by improvement in NIMs YoY; however, PPoP grew by 30% YoY led by increase in other income (up 94% YoY). PAT grew by 21% YoY led by higher provisions (up 52% YoY). We have largely maintained our...

We maintain our BUY recommendation on the stock.

Cholamandalam Finance (Chola) sustains robust Q1FY26 performance with PAT growth at 21% YoY, RoA at 2.2% and RoE at 19%.

Cholamandalam Inv. & Finance (CIFC)’s 1QFY26 PAT grew ~21% YoY to INR11.4b (in line). Its 1Q NII grew ~24% YoY to ~INR31.8b (in line).

Net earnings were in line with expectations at Rs. 529 crore, increasing 3.2% (y-o-y) but declining 6.0% (q-o-q). This was driven by strong PPOP growth, though higher credit costs offset it.

Total expenses surged 228.3% YoY in Q1FY26, mainly due to finance costs reaching Rs. 99cr, up from zero in Q1FY25, after Jio Credit Ltd accessed external debt markets to support its operational growth. Employee benefit expenses and other expenses grew 63.6% and 144.8%,...

Five Star Business Finance (Five Star)’s management attributes the company’s asset quality deterioration, stage3 assets increasing to 2.5% vs. 1.8% QoQ and 30+ DPD rising to 11.3% vs. 9.65% QoQ, to higher stress in its core product (INR 0.3–0.5mn LAP) in the near term.

Fedbank Financial Services (Fedfina) is best placed in the current cycle by staying ahead of the curve in recognising stress in S-LAP (three quarters ago).