Satin profit jumps +42.66% QoQ as operating margin rebounds
Revenue rose +20.96% while expenses fell -0.84%; management retained 20–25% FY27 AUM growth guidance.
Filed 28 Oct 2026, 16:14 IST · after market close · Satin Creditcare Network Ltd (SATIN)
Key takeaways
- Standalone Q2FY27 net profit rose +42.66% QoQ as revenue grew +20.96% while expenses declined -0.84%.
- Operating margin recovered 8.08 percentage points to 63.27%, but remained below Q4FY26's 65.46%.
- Consolidated disbursements grew 41% YoY to Rs 3,697 cr, while management retained FY27 AUM growth guidance of 20–25%.
Price around the results
Standalone profit rebounds on operating leverage
Satin's standalone net profit rose +42.66% QoQ, ahead of the +20.96% increase in revenue, as operating profit grew +38.66%. Other income contributed only 0.26% of pre-tax profit, so the improvement was not driven by a non-operating item. The tax rate increased 0.98 percentage points, indicating that a lower tax burden did not flatter the profit growth.
Margin recovers, but remains below the Q4 peak
Operating margin expanded 8.08 percentage points as revenue grew +20.96% while expenses declined -0.84%. Interest expense rose +35.06%, limiting the flow-through to pre-tax profit even as PBT increased +44.53%. Margin moved from 65.46% in Q4FY26 to 55.19% in Q1FY27 and 63.27% in Q2FY27; it was 1.98 percentage points above the median of 37 Financial Services peers that had reported the quarter.
Disbursement growth supports management's FY27 framework
Management said standalone Q2FY27 disbursements rose 28% YoY to Rs 3,101 cr, while consolidated disbursements rose 41% to Rs 3,697 cr. It retained guidance for 20–25% consolidated AUM growth, 3.0–3.5% standalone credit cost and 3.5–4.0% standalone ROA in FY27, and said growth is seasonally higher in the second half. The company said it has moved to Grameen Score and PIN-code-based assessment within its underwriting guardrails, alongside AI, machine learning and data science across the loan lifecycle.
No same-session market reaction after the filing
Satin filed the standalone results after market close on 28 October 2026. This leaves no same-session price reaction to assess.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹812 cr | ₹671 cr | +20.96% |
| Other income | ₹1 cr | ₹1 cr | +7.27% |
| Expenses | ₹298 cr | ₹301 cr | -0.84% |
| Operating profit | ₹513 cr | ₹370 cr | +38.66% |
| Operating margin (%) | 63.27% | 55.19% | — |
| Interest | ₹279 cr | ₹206 cr | +35.06% |
| Depreciation | ₹7 cr | ₹6 cr | +6.84% |
| Profit before tax | ₹228 cr | ₹158 cr | +44.53% |
| Tax | ₹57 cr | ₹38 cr | +50.49% |
| Net profit | ₹172 cr | ₹120 cr | +42.66% |
| EPS (₹) | ₹15.59 | ₹10.94 | +42.50% |
Operating margin of 63.27% compares with a Financial Services sector median of 61.29% across 37 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.56% | +8.51% |
Volume on the results session was 15.14× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q2FY27 standalone disbursements were ₹3,101 Crores, up 28% year on year.
- Q2FY27 consolidated disbursements were ₹3,697 Crores, up 41% year on year.
Guidance & outlook
- FY27 consolidated AUM growth guidance is 20–25%.
- FY27 standalone credit cost guidance is 3.0–3.5%.
- FY27 standalone ROA guidance is 3.5–4.0%.
- Consolidated AUM is targeted to reach ₹32,000 Crores by FY2030.
- The company expects seasonally higher growth in the second half of the year.
New initiatives
- The company uses AI, machine learning and data science across the loan lifecycle.
- The company moved to Grameen Score as part of its underwriting guardrails.
- The company uses PIN-code-based assessment in its underwriting guardrails.
- The company has partnerships with global impact lenders and DFIs to design, pilot and scale ESG initiatives.
Competition
- The company describes itself as India's fourth-largest NBFC-MFI by AUM and customer base.
Problems & risks
- The company reported 21 profitable quarters in a row despite industry headwinds.
What to watch
- Whether standalone operating margin rebuilds toward Q4FY26's 65.46%.
- Whether interest expense growth remains contained after the +35.06% QoQ increase.
- Whether standalone credit cost stays within management's 3.0–3.5% FY27 guidance.