Suryoday Small Q2 FY27 Earnings Call — Analysis (NSE: SURYODAY)
Suryoday SFB reported Q2FY27 PAT of ₹76.5 Cr with GNPA dropping to 2.9% post ₹596 Cr write-offs/OTS, maintaining full-year 30-35% advances growth guidance.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Net Total Income ₹495.3 Cr ( +46.5% YoY ) . New guidance — FY27 gross advances growth 30% to 35% . New story: Asset Quality Cleanup and CGFMU Recovery .
Results
Net total income grew 46.5% YoY to ₹495.3 Cr, NII rose 42.8% to ₹368.8 Cr with NIM at 7.2% (+28bps YoY), and PAT reached ₹76.5 Cr as GNPA fell to 2.9% from 6.5% QoQ.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Gross Advances (incl. IBPC) | ₹14,972 Cr | +34.6% | yoy · Q2FY27 |
| Disbursements | ₹3,096 Cr | +27.4% | yoy · Q2FY27 |
| Total Deposits | ₹16,184 Cr | +35% | yoy · Q2FY27 |
| Retail Deposits | ₹13,676 Cr | none · Q2FY27 · 84.5% of total deposits | |
| CASA Ratio | 19.4% | yoy · Q2FY27 · CASA balance up 26.8% YoY | |
| Net Interest Income | ₹368.8 Cr | +42.8% | yoy · Q2FY27 |
| Net Interest Margin | 7.2% | +28bps | yoy · Q2FY27 |
| Net Total Income | ₹495.3 Cr | +46.5% | yoy · Q2FY27 · ₹338.1 Cr in Q2FY26 |
| PPoP | ₹145.5 Cr | yoy · Q2FY27 | |
| Profit After Tax | ₹76.5 Cr | sequential · Q2FY27 · Net margin 15.5% | |
| Gross NPA | 2.9% | -360bps | sequential · Q2FY27 · 6.5% in Q1FY27 |
| CRAR | 19.37% | point_in_time · Q2FY27 · Sep-26 |
Guidance
Management reiterated FY27 advances growth of 30% to 35% with an exit ROA target of approximately 1.4% to 1.5%.
What management committed to
- We remain focused on the full-year objective of 30% to 35% advances growth [in FY27]. — 30% to 35%, FY27
- [The Bank targets] an exit ROA of approximately 1.4% to 1.5% [for FY27]. — 1.4% to 1.5%, Q4FY27
- We plan to raise another INR200 crores [Tier 2 capital] well before the end of the year, hopefully by December or latest Q4 of the current financial year. — INR200 crores, Q4FY27
- [The Bank will add] around closer to 50 branches in the next 4 months or 5 months. — 50 branches, Q4FY27
- INR450 crores to INR550 crores will be the range at which we'll be focusing on the [IF] disbursement for the next 5 months. — INR450 crores to INR550 crores, Q4FY27
- [The Bank aims to achieve] 45-55 [mix between IF and Retail Assets] in the medium term. — 45-55, FY28
Key themes
Asset cleanup and digital credit scaling
How the narrative shifted
- Asset Quality Cleanup and CGFMU Recovery: Management emphasizes the structural reduction in reported GNPA to 2.9% via ₹387 Cr CGFMU claim settlement and ₹596 Cr write-offs/OTS, ensuring a cleaner balance sheet.
- Rapid Scaling of Digital Credit (CLOU): The Credit Line on UPI product is framed as an exponential customer acquisition and fee-generating engine offsetting volatile PSLC income.
- Drought Impact Vigilance in Core States: Management adopts a prudent stance on ₹1,000–1,100 Cr exposure in Maharashtra and Karnataka drought regions, freezing NTC customer onboarding while watching for lagged credit impacts.
- Granular Retail Liability Mobilization: In a competitive deposit market, building granular retail deposits (now 84.5% of total) is key to managing cost of funds and supporting 30%+ credit growth.
Operational commentary
- Received ₹387 Cr of CGFMU claims in July 2026 and executed ₹596 Cr of legacy stressed asset write-offs and OTS, reducing GNPA to 2.9%.
- Credit Line on UPI (CLOU) business scaled to ~₹350 Cr portfolio with over 14 lakh customers targeted; portfolio exhibits 15-20 days average duration.
- Mortgages and Commercial Vehicle (CV) secured portfolios grew at 36% YoY, advancing diversification toward secured lending (retail assets at 59% vs IF at 41%).
- Current bucket collection efficiency for Inclusive Finance (IF) remained stable at 99.3% in Q2FY27 compared to 99.2% in Q1FY27.
- Raised ₹200 Cr Tier 2 capital in early October 2026 improving CRAR by 1.8%, with another ₹200 Cr planned by Q4FY27.
- Monitoring drought exposure of ₹1,000–1,100 Cr in Maharashtra and Karnataka; halted new-to-credit (NTC) customer onboarding in affected districts.
Analyst Q&A
Q. Status of the CGFMU cover for FY27 disbursements and impact on credit costs if delayed?
The central government renewal notification is pending for fresh FY27 disbursements, but pre-March 2026 disbursements remain 100% covered. The bank provided ₹40-45 Cr in H1 for estimated premiums, so no P&L shock is expected when the window opens.
Q. Why PAT guidance was not raised despite already reaching last year's PAT and whether drought in Maharashtra/Karnataka threatens the target?
Management is maintaining the ₹300 Cr PAT guidance prudently due to potential lagged impacts of drought and tight liquidity, though confident of achieving it aided by digital business (CLOU) fee growth.
Q. What caused the slippages to increase to ₹122 Cr in Q2 and which segments contributed?
Slippages were roughly 50-50 split between IF (~₹65 Cr) and secured/digital (~₹57 Cr), with minor uptick in CV and mortgage accounts alongside normalization of IF from very low Q1 levels.
Research and educational content only. Not investment advice.