Satin Creditcare Network Limited (SCNL), a leading microfinance institution, has reported a robust financial performance for the second quarter of fiscal year 2026, marking its 17th consecutive quarter of profitability. The company's strategic focus on portfolio diversification and geographic expansion is yielding positive results, as evidenced by its latest financial figures.

Financial Highlights

For Q2 FY26, SCNL reported:

• Consolidated revenue growth of 20.58% year-over-year, reaching ₹793.00 crores
• Net profit after tax (PAT) of ₹53.00 crores, up 18.95% from the previous year
• Net Interest Income (NII) of ₹449.00 crores, a 14.60% increase year-over-year
• Assets Under Management (AUM) of ₹12,687.00 crores, growing 7.99% year-over-year

Portfolio Diversification Strategy

SCNL is actively pursuing a diversified lending portfolio with a target of 15% allocation to non-microfinance institution (non-MFI) products. This strategy aims to balance the company's risk profile and tap into new growth opportunities. The non-MFI portfolio has shown significant progress, increasing from 8% to 15% over the past five years.

Geographic Expansion

The company entered Mizoram in July 2025, strengthening its presence in the Northeast region, which has been one of its most resilient and high-performing areas. During the first half of FY26, SCNL opened 162 new branches across India, bringing its total branch count to 1,713.

Asset Quality and Risk Management

SCNL has maintained a strong focus on asset quality:

• Gross Non-Performing Assets (GNPA) stood at 3.5% as of September 30, 2025
• The company has implemented a Natural Calamity Insurance for incremental disbursements from September 2025
• Rejection rates remained high at 64%, reflecting a tighter credit evaluation framework

Subsidiary Performance

Satin Housing Finance Ltd. (SHFL) and Satin Finserv Ltd. (SFL) have shown promising growth:

• SHFL's AUM grew by 20% year-over-year to ₹1,022.00 crores
• SFL's MSME book grew by 49% year-over-year

Future Outlook

Dr. HP Singh, Chairman cum Managing Director of SCNL, commented on the results: "Our focus on operational discipline and risk management continues to yield tangible results, with profitability and asset quality metrics performing ahead of industry standards. This reinforces the strength of our diversified model and our ability to navigate an evolving environment with agility and confidence."

The company plans to further reduce credit costs, enhance digital and field efficiencies, and deepen customer engagement. With a strong capital base and a capital adequacy ratio of 26.3%, SCNL is well-positioned for sustainable growth.

As SCNL continues to expand its product offerings and geographical reach, it remains committed to its mission of financial inclusion and empowerment, particularly in rural and semi-urban India. The company's strategic initiatives, including the recent launch of Satin Growth Alternatives Ltd. for MSME financing, underscore its commitment to addressing diverse credit needs and promoting inclusive growth in India's financial ecosystem.

Satin Creditcare Network Limited , a prominent player in the microfinance sector, has reported a robust financial performance for the second quarter. The company's consolidated net profit saw a significant increase of 19% year-over-year, reaching 532 million rupees compared to 447 million rupees in the same period last year.

Revenue Growth and Operational Performance

The company's revenue showed strong growth, increasing to 7.9 billion rupees from 6.6 billion rupees in the corresponding quarter of the previous year, marking a 19.7% rise. This growth in revenue indicates the company's expanding operations and market presence.

EBITDA and Margin Analysis

Satin Creditcare's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw an improvement, rising to 3.85 billion rupees from 3.3 billion rupees year-over-year. However, the EBITDA margin experienced a slight decline, moving from 50.82% in the previous year to 48.85% in the current quarter. This marginal decrease in margin suggests that while the company is growing, it may be facing some cost pressures.

Financial Position and Key Metrics

As of September 30, Satin Creditcare Network's consolidated financial position shows:

The company maintains a strong capital position with a CRAR of 26.12%, well above regulatory requirements, indicating a robust buffer against potential risks.

Loan Portfolio and Asset Quality

Satin Creditcare's loan portfolio stood at 952,456.72 million rupees as of September 30. The company's asset quality metrics show a Gross NPA of 3.52% and a Net NPA of 1.19%, reflecting its focus on maintaining a healthy loan book.

Liquidity and Funding

The company reported a Liquidity Coverage Ratio (LCR) of 132.85%, demonstrating strong liquidity management. Cash and cash equivalents stood at 188,541.24 million rupees, providing a solid liquidity cushion.

Conclusion

Satin Creditcare Network's financial results indicate resilience, with growth in both revenue and profitability. The company maintains a strong capital position and focus on asset quality. However, the slight decline in EBITDA margin may warrant attention to cost management in the coming quarters.