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AUM growth remains muted; PAR rates improve

Healthy customer additions; PAR 30 and 90 continue to improve

* CREDAG’s AUM grew ~3% YoY and was flat QoQ at INR259b as of Sep’25 (slightly below our estimates). The share of Karnataka in AUM stood at INR79b as of Sep’25 vs. INR81b in Jun’25, while AUM in other states stood at INR180b in Sep’25 vs. INR179b as of Jun’25.

* Disbursements grew 33% YoY but declined ~2% QoQ to INR53b in 2QFY26.

* The company added 220K+ new borrowers during the quarter.

* CREDAG opened 150 new branches in 1HFY26, including 96 branches in 2Q.

Asset quality as of Sep’25:

* PAR 0+ declined ~120bp QoQ to 4.7%.

* PAR 0+ (excl. Karnataka) declined ~60bp QoQ to 3.8%.

* PAR 30+ declined 120bp QoQ to 3.7%.

* PAR 60+ declined 100bp QoQ to 3.1%.

* PAR 90+ declined 80bp QoQ to 2.5%.

* PAR 15+ accretion rate was range-bound due to the temporary impact of heavy rains and floods across its operating geographies.

* The PAR 15+ accretion/AUM in Karnataka improved to 0.51% in Sep’25 from 1.9% in Mar’25.

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