Onemi Technology Q2 FY27 Earnings Call — Analysis (NSE: KISSHT)
Kissht reported strong Q2FY27 PAT doubling YoY to ₹125 Cr on 68% AUM growth to ₹9,317 Cr, prompting management to raise full-year AUM growth guidance to 60%+.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Total Income ₹740 Cr ( +43% YoY ) . Guidance raised — FY27 gross npa below 2.25% . New story: High-quality customer shift compresses yields .
Results
Total income rose 43% YoY to ₹740 Cr with PAT doubling to ₹125 Cr (+32% QoQ) and GNPA improving to 2.18%.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| AUM | ₹9,317 Cr | +68.4% | yoy · Q2FY27 |
| AUM | ₹9,317 Cr | +16.4% | qoq · Q2FY27 |
| Disbursements | ₹4,612 Cr | +56% | yoy · Q2FY27 |
| Total Income | ₹740 Cr | +43% | yoy · Q2FY27 |
| Pre-provisioning Operating Profit | ₹287 Cr | +40% | yoy · Q2FY27 |
| Profit After Tax | ₹125 Cr | +100% | yoy · Q2FY27 |
| Profit After Tax | ₹125 Cr | +31.6% | qoq · Q2FY27 |
| Return on Average AUM | 5.78% | +73bps | qoq · Q2FY27 |
| Gross NPA | 2.18% | -75bps | yoy · Q2FY27 |
| Net NPA | 0.34% | -2bps | qoq · Q2FY27 |
| Credit Cost (% of Avg AUM) | 6.2% | -60bps | qoq · Q2FY27 |
| Cost of Borrowing | 13.76% | -69bps | qoq · Q2FY27 |
| Net Worth | ₹2,377 Cr | point_in_time · Q2FY27 · Sep-26 |
Guidance
FY27 AUM growth guidance raised from 40%+ to 60%+ with expected credit cost reduction of over 15% YoY and RoE above 20%.
What management committed to
- Gross NPA will remain below 2.25%. — below 2.25%, FY27
- LAP AUM will grow by approximately 15% to 20% quarter on quarter over the next two years, reaching approximately 2.5 times current size. — approx 2.5x / 15-20% QoQ, Q2FY29
- Overall cost of borrowing will further decline by at least 150 basis points over the next 3 to 4 quarters. — at least 150 bps, H1FY28
- Stage-2 provisions as a percentage of AUM will remain constant throughout FY27 at approximately current levels. — constant (~2.37%), FY27
- Operating cost (OPEX) as a share of average AUM will improve by 25 to 40 basis points quarter on quarter. — 25-40 bps QoQ improvement, FY27
Key themes
High AUM growth with improving credit quality
How the narrative shifted
- High-quality customer shift compresses yields: The strategy is now being framed as vindicated by industry trends rather than just a trade-off, with specific metrics showing the shift working.
- Credit cost declining on better underwriting: The target itself has been raised from 15% to emphatically more than 15%, moving from a steady improvement story to an accelerating one.
- Off-book partnership driven AUM growth: Off-book share now 55% (up from 53.6%), explicitly credited with enabling the 60%+ AUM growth target without straining the balance sheet or diluting ROE.
- LAP scaling with technology differentiation: Breakeven ahead of schedule shifts the narrative from an experimental scaling investment to a confirmed profitable new growth engine with high ROE contribution.
- Cost of funds improvement trajectory: The trajectory shifted from a hoped-for 100 bps to a guided 150+ bps, making cost of funds a central lever of the margin story.
- Macro watch but Kissht book resilient: Management proactively addressed macro risks (gold loan, MFI, drought, repo rate hike) by framing them as signals the company has already acted on, showcasing active portfolio management over passive concern.
Operational commentary
- Loan Against Property (LAP) segment turned profitable in Q2FY27, a quarter ahead of internal guidance, reaching ₹737 Cr AUM across 107 branches.
- Upward shift in customer profile: borrowers with CIBIL score >760 increased to 24.8% from 20.8%, while <700 score borrowers reduced to ~4%.
- Share of new loans to leveraged borrowers (with 3+ live loans) fell >35% YoY and >7% QoQ.
- Deliberate de-risking: exposure to borrowers carrying gold loans reduced to sub-8% of total book, drought-affected areas to sub-6%, MFI overlap to sub-3.4%, and KCC overlap to sub-2.6%.
- Completed preferential equity allotment of ₹832 Cr approved in October 2026 EGM, augmenting capital adequacy to support growth without further dilution up to ₹30,000 Cr AUM.
- AI-driven underwriting model iteration 42 achieved Area Under Curve (AUC) of 75% (vs 66% in 2023), and AI voice agents now recover early-bucket delinquencies at 85% of human caller rates.
Analyst Q&A
Q. Drivers of AUM growth (+68% YoY) outpacing customer additions (+22% YoY).
Driven by deeper repeat customer engagement, intentional shift to higher-quality/higher-income borrowers taking larger ticket sizes, and moderate increase in average tenure to 17.8 months.
Q. Expected trajectory and run-rate for credit costs going forward.
Credit cost will sustain downward momentum to finish >15% lower YoY (from ~7.0% in Q4FY26 to ~5.8% by Q4FY27) due to proactive risk weeding and upstream borrower acquisition.
Q. Further room for reduction in borrowing costs given systemic rate increases.
Incremental debt was raised at 12.1% in Q2 vs average 13.76%; replacement of older borrowings over the next 3-4 quarters will deliver at least a 150 bps reduction.
Q. Impact and durability of lower effective tax rate (19% vs 26% last quarter).
Attributable to deductible ESOP expenses across 3 legacy schemes; tax benefits will continue to accrue over the next 3 to 5 quarters, though the magnitude will gradually normalize.
Q. Need for future capital raises following the ₹832 Cr preferential allotment.
Given comfortable leverage and current off-book/on-book mix (55:45), no further capital raise will be required until AUM reaches ₹30,000 Cr.
Research and educational content only. Not investment advice.