INDIA SHELTE FIN Q2 FY27 Results (NSE: INDIASHLTR)
Signal: Earnings grew
The read
Q2FY27 marks a sharper income-growth quarter at ₹50,435.35 lakh, +36.7% YoY, versus the prior Q1FY27 growth profile, with NII at ₹24,098.25 lakh, +44.6%; however, PAT growth was lower at +20.3% as impairment rose 71.1% YoY, and EPS growth of +4.7% materially lagged PAT growth after employee-share issuance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹504.35 Cr | +36.7% | +16.6% |
| Net profit | ₹146.53 Cr | +20.3% | |
| EPS | ₹13.36 | +4.7% | |
| EBIT margin | 0 |
P&L walk
Standalone total income rose to ₹50,435.35 lakh, +36.7% YoY and +16.6% QoQ, led by higher interest income and fee income; PAT increased to ₹14,652.91 lakh, +20.3% YoY, but impairment costs rose 71.1% YoY and EPS grew only 4.7%.
Key positives
- Total income reached ₹50,435.35 lakh, +36.7% YoY and +16.6% QoQ, accelerating from ₹36,894.35 lakh in the year-ago quarter.
- Net interest income rose to ₹24,098.25 lakh, +44.6% YoY, while finance costs increased 17.1% YoY, supporting spread-led operating growth.
- Gross NPA and net NPA were reported at 1.55% and 1.16%, respectively, with liquidity coverage at 153.94%.
- The company maintained 110% security cover on secured listed non-convertible debentures as of September 30, 2026.
Key concerns
- Impairment on financial instruments rose to ₹1,631.03 lakh, +71.1% YoY and +24.3% QoQ, outpacing total-income growth and limiting PAT growth to +20.3%.
- Operating cash flow remained negative at ₹38,927.88 lakh in H1FY27, despite reported half-year PAT of ₹28,864.72 lakh, primarily reflecting a ₹72,197.12 lakh increase in loans.
- EPS increased only 4.7% YoY to ₹13.36 versus 20.3% PAT growth, indicating dilution pressure following 4,38,516 employee-option share allotments in H1FY27.
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