INDIA SHELTE FIN Q1 FY27 Results (NSE: INDIASHLTR)
Signal: Earnings grew
The read
Revenue growth decelerated to 19.8% YoY (4th straight deceleration from 43% in Q1FY26), but NII grew 31% on stable spreads, keeping PAT growth at 20%. Margins flat, asset quality healthy (GNPA 1.55%), but rising impairment (+31% YoY) and slowing loan book warrant monitoring.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹432.39 Cr | 19.8% | 5.3% |
| EBIT | 0 lakh | N/A | |
| Net profit | ₹143.02 Cr | 19.9% | |
| EPS | ₹13.15 | 19.0% | |
| EBIT margin | 0% |
P&L walk
Revenue growth slowed to 19.8% YoY (4th consecutive deceleration), but NII expanded 31% as finance cost grew only 13.8% vs interest income +24.7%. Margins stable (EBITDA margin ~71.6%), impairment rose 31% in line with AUM growth. PAT tracked revenue at +20%.
Key positives
- NII grew 31% YoY (₹23,493 lakh vs ₹17,919 lakh) driven by 24.7% interest income growth and controlled finance cost (+13.8%).
- EBITDA margin ~71.6% and net profit margin 33.1% remain healthy.
- Gross NPA at 1.55% and Net NPA at 1.15% indicate sound asset quality.
- LCR at 163% provides strong liquidity buffer.
Key concerns
- Revenue growth decelerated for 4 consecutive quarters from 43.3% (Q1FY26) to 19.8% (Q1FY27), signaling slower loan book expansion.
- Impairment on financial instruments rose 30.9% YoY and 70.2% QoQ, though from a low base.
- No prior-year comparatives for NPA ratios or cost-to-income; trend assessment limited.
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