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AUM rises ~19% YoY; asset quality broadly stable

Loan growth

* CREDAG’s AUM grew ~19.5% YoY and ~2.1% QoQ at INR310b as of Sep’26 (broadly in line with our estimates).

* Disbursements grew 19% YoY and ~4% QoQ to INR64b in 2QFY27.

* The company added more than 230k new borrowers during 2QFY27.

* The company opened 50 new branches in 2QFY27.

* Retail finance share was 23% in Sep’26 vs. ~21% in Jun’26 and 11% in Sep’25.

Asset quality

* Monthly PAR 15+ Accretion/AUM rate stood at 0.26% in Sep’26 vs. 0.47% in Sep’25 and 0.16% in Jun’26.

* The minor increase in monthly PAR accretion rate was due to 1) excess rainfall and heavy flooding in Aug-26/Sep-26 across certain regions in Bihar, Uttar Pradesh, Chhattisgarh, and Madhya Pradesh, and b) seasonal festivities in a few operating geographies.

* Asset quality has completely normalized across all geographies, with overall X-Bucket CE of 99.71% in Sep’26.

* PAR buckets exhibited a meaningful improvement QoQ, led by lower new PAR accretion.

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