DAR Credit & Capital pivots to secured MSME loans, lifting profit 61%
The microfinance lender posted a 60.7% jump in quarterly profit to ₹3.07 crore as it shifts its portfolio toward secured lending.
What's new
- Q4 net profit rose 60.7% to ₹3.07 crore on revenue of ₹14.23 crore.
- Full-year FY26 profit reached ₹10.13 crore, up 43.9%.
- Management targets FY27 AUM of ₹260-275 crore and a balance sheet of ₹350-370 crore.
Why this matters
The shift toward secured MSME lending is producing bottom-line growth. Maintaining a gross NPA of 1.01% while scaling the branch network shows the company is managing credit quality during this expansion.
What we're watching
- Whether the firm hits its ₹260-275 crore AUM target in FY27.
- Sustainability of the 1.01% gross NPA as the loan book expands.
- Impact of the branch expansion on operating margins.
The full read
DAR Credit & Capital is reorienting its business model. By pivoting toward secured MSME lending, the lender delivered a 60.7% year-on-year increase in quarterly net profit to ₹3.07 crore for the period ending March 2026. Revenue climbed 39.6% to ₹14.23 crore, supported by a broader branch network and stricter underwriting standards. For the full fiscal year, profit reached ₹10.13 crore on revenue of ₹50.05 crore. Management is now looking ahead, setting an AUM target of ₹260-275 crore and a balance sheet target of ₹350-370 crore for FY27. The firm is keeping its gross NPA at 1.01%. The transition from traditional microfinance to secured lending is working. The next test is whether the company can maintain these asset quality metrics while aggressively expanding its balance sheet.
Questions answered
- What is the primary driver behind the profit growth?
- The company attributes the 60.7% profit growth to a strategic pivot toward secured MSME lending and a tighter underwriting process.
- How did the company perform for the full fiscal year?
- DAR Credit & Capital reported a full-year profit of ₹10.13 crore for FY26, representing a 43.9% increase over the previous year.
- What are the company's growth targets for FY27?
- Management has set an AUM target of ₹260-275 crore and a total balance sheet target of ₹350-370 crore for the upcoming fiscal year.
- What is the current status of the company's asset quality?
- The company reported a gross NPA of 1.01%, which it intends to maintain as it scales its operations.
An independent reading of the company's own disclosure — the primary filing above is the final word.