MTM gains lifted Satin's Q4 yield as forex costs raised borrowing expense
Branch expansion also increased operating expenses, with management pointing to 392 new branches and efficiencies expected in coming quarters.
Filed 15 Sep 2026, 17:35 IST · after market close · SATIN (SATIN)
Key takeaways
- Interest expense of Rs 343.48 cr was the main charge below operating profit, leaving standalone profit before tax at Rs 180.90 cr.
- The 65.46% standalone operating margin needs to be read alongside management's comment that Q4-FY26 yield was lifted by MTM gains and followed by forex-related borrowing costs.
- The company added 392 branches in FY26, while management said the expansion raised operating expenses and that efficiencies would become visible in coming quarters.
Interest absorbed much of Satin's operating profit
Satin reported standalone operating profit of Rs 531.30 cr, but interest expense of Rs 343.48 cr materially reduced the conversion into profit before tax of Rs 180.90 cr. Other income was only Rs 0.56 cr, so reported profitability was not driven by that line. Net profit was Rs 136.95 cr after tax of Rs 43.95 cr.
Q4 margin was shaped by MTM and forex effects
The 65.46% operating margin was accompanied by management's explanation that Q4-FY26 yield was elevated by mark-to-market gains. The company also said changes in forex rates subsequently created an expense through the cost of borrowing. Management separately attributed elevated operating expenses to branch expansion.
Branch additions set the near-term operating context
Management said the company added 392 branches in FY26 and expects operating efficiencies to become visible in coming quarters. The presentation also said Satin Finserv expanded its green-finance portfolio through 34 loans totalling Rs 256 cr. It further described partnerships with global impact lenders and development finance institutions to design and scale ESG initiatives.
Results were filed after market close
The standalone results were filed after market close on 15 Sep 2026. The stock's post-results reaction is not covered because the filing was after the close.
Q4FY26 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q4FY26 |
|---|---|
| Revenue | ₹812 cr |
| Other income | ₹1 cr |
| Expenses | ₹280 cr |
| Operating profit | ₹531 cr |
| Operating margin (%) | 65.46% |
| Interest | ₹343 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹181 cr |
| Tax | ₹44 cr |
| Net profit | ₹137 cr |
| EPS (₹) | ₹12.45 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company added 392 branches in FY26 and expects operating efficiencies to become visible in coming quarters.
- Satin Finserv expanded its green finance portfolio with 34 loans totaling ₹256 crores in FY26.
New initiatives
- The company is partnering with global impact lenders and DFIs to design, pilot and scale ESG initiatives.
- The company has established exhaustive greenhouse-gas accounting across Scope 1, 2 and 3.
Problems & risks
- Q4-FY26 yield was elevated due to MTM gains and a subsequent borrowing-cost expense from changes in forex rates.
- Operating expenses were elevated because of branch expansion.
What to watch
- Whether operating efficiencies become visible after the addition of 392 branches in FY26, as management said.
- Whether the 65.46% operating margin holds while branch-related operating expenses are monitored.
- Whether interest expense remains affected by forex-related borrowing costs relative to Rs 343.48 cr in Q4-FY26.