Onemi Technology Q1 FY27 Results (NSE: KISSHT)
Signal: Earnings grew
The read
Q1FY27 continues strong AUM growth (+61% YoY) and revenue (+45% YoY), but credit costs (impairment on financial instruments) are rising faster (+28% YoY), compressing operating margins ~300bps. PAT beat (+59% YoY) was aided by a deferred tax credit, while basic EPS collapsed 42.5% from IPO dilution — core lending profitability needs to absorb both higher impairment and a much larger equity base.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹669.5 Cr | 44.6% | 8.1% |
| EBIT | ₹0 Cr | ||
| Net profit | ₹95.08 Cr | 59.2% | |
| EPS | ₹6.41 | -42.5% |
P&L walk
Revenue +44.6% YoY on strong loan disbursement growth; OPM compressed ~300bps YoY as impairment (credit cost) grew +27.9% YoY and other expenses (+68.5% YoY, partly IPO-related) outpaced revenue — profit growth of +59% YoY aided by a deferred tax credit of ₹178 mn; PAT margin ~14.2% vs 12.8% a year ago.
Segments
No segment disclosure — the group is a single reporting segment: financial services (fintech lending).
Key positives
- AUM grew 60.9% YoY to ₹8,001 Cr — strong capital deployment post-IPO with ₹6,368 mn infused into subsidiary for lending.
- Revenue grew 44.6% YoY, demonstrating robust demand for digital lending products.
- Employee cost grew only 8.9% YoY vs revenue +44.6% — clear operating leverage on personnel.
- Standalone PAT grew 86.6% YoY, indicating healthy core parent profitability.
Key concerns
- Impairment on financial instruments (credit cost) grew 27.9% YoY and 12.2% QoQ, outpacing revenue growth — asset quality needs monitoring as AUM scales.
- Other expenses surged 68.5% YoY (to ₹2,633 mn), partly from IPO-related costs, pressuring margins.
- Basic EPS declined 42.5% YoY due to significant equity dilution from the IPO — per-share earnings not reflective of business growth.
- Operating margin (OPM) contracted ~300bps YoY, as cost growth outpaced revenue.
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