Onemi Technology Q1 FY27 Earnings Call — Analysis (NSE: KISSHT)
Kissht Q1FY27 AUM surges 61% YoY to ₹8,001 Cr; management signals full-year AUM growth will overachieve 40% guidance.
The take
Q1FY27 Total Income ₹677 Cr ( +45% YoY ) . New guidance — FY27 aum growth overachieve 40% . New story: High-quality customer shift compresses yields .
Results
Total income ₹677 Cr (+45% YoY); PAT ₹95 Cr (+59% YoY, +16% QoQ); Credit cost fell to 6.80% of average AUM from 8.85% YoY; ROAA 5.05%, ROAE 21.20%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| AUM | ₹8,001 Cr | point_in_time · Q1FY27 · Jun-26 | |
| AUM growth (YoY) | 61% | yoy · Q1FY27 | |
| AUM growth (QoQ) | 13% | qoq · Q1FY27 | |
| Disbursements | ₹3,812 Cr | +37% | yoy · Q1FY27 |
| Total Income | ₹677 Cr | +45% | yoy · Q1FY27 |
| Pre-Provisioning Operating Profit | ₹256 Cr | +42% | yoy · Q1FY27 |
| Profit After Tax | ₹95 Cr | +59% | yoy · Q1FY27 |
| Credit Cost | 6.80% | yoy · Q1FY27 · Q1FY26: 8.85% | |
| ROAA | 5.05% | yoy · Q1FY27 · steady vs prior quarters | |
| ROAE | 21.20% | yoy · Q1FY27 · steady | |
| Gross NPA | 2.25% | point_in_time · Q1FY27 · Jun-26 | |
| Net NPA | 0.36% | point_in_time · Q1FY27 · Jun-26 | |
| Collection Efficiency | 96.82% | point_in_time · Q1FY27 · Jun-26 | |
| Capital Adequacy (NBFC subsidiary) | 40.2% | point_in_time · Q1FY27 · Jun-26 |
Guidance
FY27 AUM growth guidance of >40% expected to be overachieved; 15% credit cost reduction and >20% ROE reaffirmed; cost of borrowing to decline at least 100 bps in H2 FY27.
What management committed to
- FY27 AUM growth will overachieve the 40% guidance given last quarter. — overachieve 40%, FY27
- Credit cost for FY27 will be 15% lower than FY26. — 15% reduction, FY27
- Overall cost of borrowing (debt) will decline by at least 100 bps from Q1FY27 levels by the end of FY27. — minimum 100 basis points, Q4FY27
- ROE will remain above 20% in the coming quarters. — above 20%, FY27
- Loan against property (LAP) business will achieve breakeven by Q3 FY27. — breakeven, Q3FY27
- Organic customer acquisition channel share will stabilize at 40-50%. — 40% to 50%
Key themes
Deliberate high-quality AUM growth with improving credit metrics
How the narrative shifted
- High-quality customer shift compresses yields: Management deliberately acquires lower-risk, lower-priced customers, compressing revenue margin but improving credit cost and profitability.
- Credit cost declining on better underwriting: Credit cost fell significantly; recent vintages outperform, enabling selective pin code reopening.
- Off-book partnership driven AUM growth: Off-book share rose to 53.6%, reducing on-book asset intensity and boosting PPOP despite lower reported yield.
- LAP scaling with technology differentiation: LAP AUM at ₹617 Cr, tech-enabled underwriting and property valuation, branches breakeven in 7-8 months, reaching segment breakeven by Q3.
- Cost of funds improvement trajectory: IPO and rating upgrades expected to lower cost of borrowing by at least 100 bps in H2, with potential further rating upgrades in FY28.
- Macro watch but Kissht book resilient: Industry stress in small-ticket and multi-lender segments, but Kissht’s recent vintages show material improvement; geopolitical oil price risk monitored.
Operational commentary
- Registered user base reached 74.6 million (+33% YoY); served 12.25 million customers (+26% YoY).
- Management paused lending in 450 pin codes last quarter as a precautionary measure; reopened ~40% (180 pin codes) after positive credit signals, exercising cautious optimism.
- Off-book share increased to 53.6% from 49.7%, reflecting growing co-lending partnerships (45+ lenders).
- Loan against property (LAP) AUM reached ₹617 Cr (7.7% of total), with 101 branches across 8 states; AI-validated property valuation and model-based underwriting deployed; 40% customers sourced from existing personal loan base.
- Technology stack enhanced: transformer-based underwriting models improve AUC to 74% (vs 66% in 2023), AI voice agents achieve 80%+ of human collection efficiency, 80% of code written with AI, and multi-agent fraud system runs 50+ checks.
- Organic customer acquisition channel share rose to 31% from 27% QoQ, expected to stabilize at 40-50%.
- IPO in May 2026 boosted net worth nearly 4x to ₹2,245 Cr; NBFC subsidiary capital adequacy surged to 40.2%.
- Secured AMFI registration for mutual fund distribution subsidiary to earn fee income from existing customers' SIP investments.
- Underwriting tightened for salaried profiles vulnerable to AI-driven job loss; additional checks on recent salary credits.
- Management flagged industry-wide stress in small-ticket loans and multi-lender borrowers, but affirmed Kissht's recent vintages performing materially better than a year ago.
Analyst Q&A
Q. Could you discuss the factors supporting the very good AUM growth this quarter and how sustainable is it?
Growth is driven by sharpened risk models that allow approving more high-quality customers, and by disciplined re-opening of paused geographies. We remain firmly confident of over-delivering on the 40% AUM growth guidance.
Q. How do you reconcile the slightly lower collection efficiency and higher bounces with reopening more pin codes?
Bounce is range-bound and partly seasonal. Credit cost has dropped to 6.80% from 8.85% YoY. Recent vintages are performing materially better; that data gives confidence to reopen select locations. The overall risk picture is improving.
Q. What is the margin outlook given the deliberate shift to high-quality customers and rising off-book share?
Revenue margin compression is deliberate. Lower-risk customers are priced lower, but the benefit in credit cost and operating leverage more than compensates. ROE guidance of 20%+ remains firmly on track, with op-ex to AUM down to 18%. Over three years, cumulative benefits from operating leverage, cost of funds reduction, and lower risk will allow maintaining ROA >5% while passing on savings to customers.
Q. What is the FLDG portion included in opex this quarter?
The exact number is not readily available; it likely adds about a percent. Only the utilized FLDG hits credit cost, unutilized capital is blocked.
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