Thank you. Good evening, friends from India and Asia, and warm welcome to all of you.

Greetings also to those who joined the call from western part of the world. To present our Q4 FY26 earning call today, I have with me Managing Director and CEO Parag Sharma, Managing Director S.

Sunder, Joint Managing Director and CFO, Sanjay Kumar, our investor relation head. It has been a good fourth quarter year for result for Shriram Finance under current circumstances.

Let us first look at the broad economic indicators. The India's GDP growth slow down to 7.8 in the third quarter physical 2026, down from 8.4 previous quarter.

However, FY26 growth projection have been revised to 7.6 from 7.1. The despite the current volatility, the IMF have projected the growth rate of 6.5 for FY27.

The economy strength is attributed to resilient domestic consumption and investment. However, it faces risk of high oil prices and geopolitical tension.

India's retail inflation rose slightly to 3.4 in March 2026, up from 3.21 in February. This increase is mainly due to higher food prices influenced by external geopolitical factors, especially the ongoing crisis in West Asia.

India's wholesale price based inflation also accelerated over three years high, reaching 3.88 in March from 2.13 in February. The RBI key a key takeaway of RBI policy are as follows.

Repo rate unchanged at 5.25. Policy stance remained at neutral.

GDP forecast 26-27 is at 6.9 against earlier against the 7.6 of 25-26. CPI inflation forecast for FY26-27 is raised to 4.6, up from 4.2 due to rising crude oil price and supply chain disruption.

India's rural economy is facing dual threat in 2026 from potential monsoon shortfall and elevated agro input cost driven by global conflict, both of which could weigh on agricultural output and farmers income, rural demand, and food inflation. The southwest monsoon remain critical for Indian economic growth as strong kharif harvest boosts rural income, drives demand for FMCG, tractor, automobile, two-wheeler, jewelry, and consumer durables.

As per the the IMD forecast, the rains are likely to be 92% of the average 92% of average rainfall as per IMD. The Skymet has projected southwest monsoon of 94% of long-term long-period average.

The deficit is expected to weaken rainfall primarily in the second half of the season. However, good rains during last two years above 100% has helped the reservoir being at a good level, and also water table being high.

These are the positive, and we expect that to help out the initial challenges in this current year. The GST collection grew by 8.8% to over ₹2 lakh crore in March this year as compared to ₹1.83 lakh crore in March 2025.

Meanwhile, gross GST revenue rose ₹22 lakh crore in financial year 25-26, an 8.3% increase over ₹20 lakh crore year recorded last year. Overall, the OEMs had a good year this year.

Their total CV sale increased by 18.86 in Q4 FY26, which stands at 3.25 lakh unit as against 2.74 lakh unit sold in Q4 25. For the full year, the sales increased by 12.64% to 18 10.8 lakh unit against 9.59 lakh unit in the FY25.

Within CV, M&HCV recorded 21.32 in Q4 26, which stands at 1.4 lakh unit against 1.15 lakh unit sold in Q4 25. For the full year sales, it increased by 12.86 to 4.23 lakh unit against 3.75 lakh unit in FY25.

LCV sale recorded 17.14 growth in Q4 26, which stands at 1.8 lakh unit versus 1.58 lakh unit sold in Q4 FY25. For the full year sales increased by 12.5% to 6.57 lakh unit against 5.84 lakh unit.

Passenger vehicle sales Q4 26 recorded 13.22% growth, which stands at 13.16 lakh units as against 11.63 lakh unit in Q4 25. For the full year, sales increased by 7.94% to 46.43 lakh unit as against 43.02 lakh unit in FY25.

Two-wheelers recorded growth of 26.39% with sales of 57.73 lakh unit in Q4 26 FY26 as against 45.68 lakh unit sold in Q4 25. For the full year, sales increased by 10.7 to 217.06 lakh unit against 196.07 lakh unit in FY25.

Three-wheelers sales recorded growth of 26.74 in Q4 with sale of 2.27 lakh unit sold versus 1.79 lakh unit sold in Q4 25. For the full year, sales increased by 12.79% to 8.3 36 lakh unit against 7.41 lakh unit.

Tractor also recorded a growth of 22.87% with a 2.86 lakh unit sold as against 2.33 lakh unit sold in Q4 FY25. For the full year, sales increased by 18.95% to 10.5 lakh unit as against 18 8.83 lakh unit in FY25.

Construction equipment recorded a degrowth of 16.02 with 29,289 units being sold as against 34,876 lakh unit sold in Q4 25. For the full year, sales increase decreased by 8.24% to 1.4 1.14 lakh unit as against 1.24 lakh unit in FY25.

EV sales, electric vehicle sales, the PV increased by 82.4% to 1.89 lakh unit as against 1.03 lakh unit for the full year. Similarly, three-wheelers increased by 18.84% to 8.31 lakh unit as against 6.99 lakh unit.

Two-wheeler, the full year increased by 21.72 to 13.93 lakh unit against 11.44 lakh unit. On April 8, 2026, in terms of investment agreement dated December 19, 2025, the company achieved a transformative milestone by successfully completing preferential allotment of 4,17, 1 lakh 1 47,11,21,055 fully paid up equity shares of face value of ₹2 each to MUFG Bank Limited at an issue price of 840.93 per share.

This landmark transaction totaling ₹396.18 billion resulted in MUFG Bank holding 20% stake in Shriram Finance on a fully diluted basis, which significantly bolsters our capital adequacy and provides a robust foundation for long-term strategic expansion. The Board of Directors have recommended a final dividend of ₹6 per equity share of face value of ₹2 each fully paid, that is 300% for financial year 25-26, subject to approval by members in ensuing 47th Annual General Meeting of the company.

This is in addition to the interim dividend of 4.8 per equity share declared on October 31, 2025. With this, total dividend for the financial year will be 10.8 per share for ₹2 each.

I shall now ask my colleague, Parag Sharma, to take us through operational performance.

Thank you. Good evening, everyone, and welcome to our Q4 FY26 earnings call, and I trust you had the opportunity to peruse our results and the related investor presentation, which has been posted on the website of stock exchanges.

With regard to disbursement, growth was 14.91% year-on-year. Disbursement in Q4 FY26 this year aggregated to ₹50,952.30 crores versus ₹44,340.57 crores in Q4 FY25.

Our assets under management as on 31st March 2026 registered a growth of 14.85% over Q4 FY25 and of 3.62% sequentially. Our AUM stood at ₹3,02,273.75 crores as against ₹2,63,190.27 crores a year ago and ₹2,91,709.03 crores in Q3 FY26.

Net interest income in Q4 FY26 registered a growth of 15.58% year-on-year. We earned a net interest income of ₹6,994.08 crores in Q4 FY26 this year as compared to ₹6,051.19 crores in Q4 FY25.

Our net interest margin in Q4 FY26 was at 8.61% as against 8.25% in Q4 FY25 and 8.58% in Q3 FY26. Our profit after tax grew by 40.86% in Q4 FY26 over Q4 FY25.

We registered PAT of ₹3,013.57 crores for Q4 FY26 as compared to ₹2,139.39 crores in Q4 FY25 and ₹2,521.67 crores in Q3 FY26. Earning per share for the quarter stood at ₹16.02 as against ₹11.38 in Q4 FY25 and ₹13.40 in Q3 FY26.

Our asset quality, gross stage 3 in Q4 FY26 stood at 4.58% and net stage 3 at 2.33% as against 4.55% gross and 2.64% net in Q4 FY25 and was 4.54% gross and 2.38% net in Q3 FY26. Our credit cost on total assets for FY26 stood at 1.68% as against 2.07% for Q4 FY25 and 1.62% for Q3 FY26.

Our cost to income ratio was 25.32% in Q4 FY26 as against 27.65% recorded in Q4 FY25. Our cost to income ratio in Q3 FY26 was 29.66%.

The increase in cost to income in Q3 FY26 was mainly due to incremental impact of ₹196.95 crores on gratuity and long-term compensated absences representing increase in past service cost because of change in definition of wages under new labor code. On the liability side, this quarter the borrowings had been muted and overall liabilities have not grown compared to December quarter and liabilities stand at ₹2,50,690 crores.

The cost of liabilities have marginally come down compared to previous quarter from 8.69 to 8.59%, and as of March 25, it was 8.96%. The incremental cost of fund is not relevant because we've not borrowed much, but still it was at 7.2%.

The liquidity coverage ratio for the company is at 323.17%, which was 335% in the December quarter. Overall liquidity is at ₹13,000 crores, roughly around ₹13,000 crores, and that is sufficient for more than 2 months of liability repayment.

The liquidity was slightly brought down because of anticipation of large capital funds being targeted for the first week of April, which was ₹40,000 crore. The leverage ratio is at 3.82 times, and that has slightly come down from the December quarter.

With this capital infusion, this will be in the range of 2.4% roughly. Capital adequacy ratio post this equity, as of now it is 20.4%, and post equity infusion will be 34%.

With this, I hand it back to the operator for opening the forum for question and answer.

Hi, sir. Thanks for the opportunity.

My first question is on segment-wise AUM growth. Right?

If you look at it, except CV and farm equipment, most other segments are witnessing a tepid growth, specifically in Q4. Despite seasonally being a strong quarter and also benefiting from GST cuts.

How one should read this trend? Is it due to lower credit demand at ground level owing to external environment, or do you see some stress building up in some part of market, and hence we might be calibrating growth in such segments?

Also, last quarter, we did mention about we would start entering into high-ticket size loans, new vehicle loans, et cetera.

Any update on that front also? Basically, if you look at the overall sales number, which I presented while giving you my address, the numbers have grown right from 10% to 20% in various category.

Especially this increase in sales have happened post reform or post the GST reforms or GST rate cuts. Therefore, the last quarter, especially Jan to March, you saw good progress in the new vehicle sales.

There is also equally demand in used vehicle. In the both, I think the demand is good.

This year, we expect the overall growth to be muted. I don't see a big growth in this financial year.

Since the demand for used vehicle is likely to remain strong, I think we will have a steady growth. We also expect on the farm side, tractor side, this year, since monsoons are likely to be delayed and monsoons are likely to be weaker, we expect the demand to come down a little.

However, it should not impact the used tractor financing. On the new vehicle financing, as you asked us, there is a growth in our new vehicle financing, especially the customers who were otherwise going out to the competition, we are able to retain and finance them.

We are seeing a good progress in the growth of new vehicle in our area.

Got it. Just a follow-up on that, sir.

When we are saying FY27 growth are to remain muted, should we assume that it would be lower than FY26 growth as well? I

see we have ended the last financial year with around 12% to 15% growth in most of the segments. If we are able to have same number of sales this year, flat growth, then itself will be achievement.

I think that itself will give us a growth in all the segment for us because our penetration will go up and we'll be able to retain our customers longer. Got it.

Got it. The reason why I'm asking this is because when we hosted a call when this deal got announced, I think our plan was to accelerate growth to 17%, 18% with entering into high-ticket loans, new vehicle financing, et cetera.

Is this a transitory derailment because of external environment, hence we are saying growth will be muted in FY27? Is that the...

I'm not taking about company's growth muted, I'm talking about sales number muted, but we will be growing at 18%, yeah. We will be growing at 18%.

Okay. For us, AUM growth will be 17%, 18% is what you're saying.

Yeah. We have projected and budgeted 18%, and we'll grow at 18%.

Okay. Thanks.

Got it. Thank you so much for this clarity, and best of luck, sir.

Hi, sir. Good evening, and thank you for giving me the opportunity.

My question was firstly on the opex front. While Parag sir highlighted that last quarter 18 190 crore was the one-off in the opex number, but this quarter, we have seen sharp decline even on Y-o-Y basis.

It is down by 2 percentage is. What explains that?

See, there was some decrease in the operating cost, and it was also aided by a strong NII in the current quarter, which has resulted in a improved cost to income ratio. As we have been earlier guiding, we should be in the long-term range, it should be around between 26% to 27%.

Sir, but on the opex front, not talking about the C/I ratio, but on the opex front alone, this improvement is Because

Compared to the previous quarter We are talking about last year.

Yeah. No, compared to Q4 FY25, sir.

See, okay. Compared to Q4 25, it's a long-term thing.

I would suggest that we compare with the December number. December number, as you are aware that ₹196 crores of additional cost was incurred for providing into the new labor code requirement.

That increased the staff cost. That is not there in the current quarter.

There has been a muted we were not very aggressive in the increasing the headcount. It has been compared to the previous year, if you see, from 79,000-odd employees, we are at 76,000 employees.

That has also contributed to a lower staff cost in the current quarter, which, going forward, we again want to increase it closer to 80,000 in the next couple of quarters. That is one.

On the other opex, the current quarter, we spent less on our branding expenses and other advertisement costs. Also, there was one change in the accounting estimates wherein the expenses related to the two-wheeler DSA payout, as till December 2025, we were charging it upfront.

Now basis to align with the IndAS requirements, we have decided to defer it over the tenor of the contract, and hence there has been a dip of around ₹50 crores on that account. Got it, sir.

Got it. Sir, thank you so much for that detailed answer.

My second question was on the GS2 plus GS3 print. On the sequential basis, we've seen an uptick there, and it is visible across CE, PV, MSME, which are our key segments.

Have you seen some deterioration in that specific segment or are we experiencing any customer profile-specific or geography-specific issues, sir?

See, we are into retail segment. There will be some fluctuations in the cash flow of the retail customers.

We can't It keeps moving from stage 2 or stage 3 sometimes, and even between stage 1 and stage 2, and come back. There is nothing like one specific geography.

There are some segments of MSME had some impact, but I think it is now reasonably well controlled. We also have reduced our MSME growth just to keep a watch on the segment, and we're very careful about it.

Most of our MSME loans are against the mortgage of property, we have nothing to really worry about it.

Got it. Sir, just a follow-up there.

Within PV, we have seen highest GS2 increase. Also in CV, it is up by almost 17 basis points on a sequential basis.

While you highlighted within MSME, there are some segments, within CV and PV also, if you could give some more details?

This also see, again, no, we are into extreme retail, individual operator kind of a lending where there will be fluctuation in the incomes. We have anticipated this while lending itself.

Our business model itself recognizes this fact, and the credit cost is factored in our lending rates. We have nothing to really worry about it.

If you look at our asset quality overall, it is moved from gross stage 3 4.55 to 4.58, only 3 basis point year-on-year.

Got it. Sir, given that you highlighted that our customer segment is relatively retail, extremely retail, now given that the geopolitical situation as well as oil prices going up, it exposes us significantly.

Are we looking at a higher, let's say, building in a higher credit cost number for FY27 or in the current quarter, have you tried to create some buffers?

See, overall coverage, we have increased a little. Right now, we cannot comment on that because fuel price are not gone up.

Unless the fuel price goes up and to what extent it goes up, we can't build a model on what is the likely credit cost. Ultimately, whatever is the increase in the fuel price, the operators will pass on to the customer.

It is not absorbed by the transporter alone or even part. He passes it on to the either shipper or the customers so that his business model does not get disrupted.

Got it, sir. Got it.

All right, sir. Thank you so much, sir, for answering my questions, and good luck for the next quarter.

Thank you.

Hi, sir. My question was that as you mentioned that in some quarters, the slippage moves up.

In Q4, it's usually unlikely that slippages moving up. Was there anything specific [unclear]

No, Q4 gone up by what?

Marginally, 4.

4.58. 4.58.

It is from 4.55 to 4.58.

It has gone up 17 bps not a big increase, but just keeping into context that it's a Q4 where we usually see improvement across other vehicle financiers.

No, we are not seeing any kind of a what you call challenging situation. Things are quite normal.

Since we are lending to all the retail customers, cash flows mismatches will be there.

Okay. Second question was, sir, now post this MUFG infusion, we are at the same level as far as the stake is concerned between you and MUFG.

As far as the deal is concerned, there was a point wherein MUFG will not be able to, say, buy from secondary market for 24 months. Does that stay or maybe there is a possibility that there could be some stake increase before that also by MUFG?

Anything on that that you would like to say?

See, this cannot be spoken here because nothing is been discussed. They have just come in, and you are already talking about something futuristic.

I think this is not a very appropriate question at all.

No, just wanted to get a sense because there was a, say, condition that there won't be a secondary market purchase for 24

See, these are all part of the agreement. Okay?

You cannot be speaking immediately on the arrival, what would be the next stage. You can't be speaking about it.

Yeah.

It's too early, you're saying, at that rate.

You have to understand, no? It's not even 1 month.

Correct.

Correct. Sure, sir.

Get that. Lastly on the growth, we had said that maybe this year at the start of the year, we were saying 15% growth, but around the GST cuts and the positive impact of it coming in Q3, we had expected that we might do 16%, 17% or slightly higher than 15%.

We are closing this year at 15%. What gives you the confidence that 18% in FY27 would be achievable considering some impact in Q1 as far as growth is concerned due to some lagging effect of this war?

What really gives you the confidence that 18% would be really possible?

See, 18% is the budget we planned, and looking at the current situation, we need to relook at it, but not now. Because we would like to wait for this situation to be understood fully.

We would like to know which are the segment fully has impact. Right now, as of today, since fuel price have not increased, the monsoon conditions are not known, we can't predict anything.

April month is normal April month for us. We have not seen any challenges.

Going forward, what is going to happen, that we need to see. Definitely, after the first quarter, first 3 months, we will relook at our budget, then probably give guidance.

Sure, sir. That was very helpful.

Thanks a lot.

Good evening, sir. Thank you for the opportunity.

The first one is slightly clarificatory. This 18% growth you're talking about is on the AUM or the disbursement?

Second, what is our growth guidance for opex or cost to assets guidance? Third is, sir, how do we look at the credit cost?

Do we want to increase our provisioning given there are certain headwinds and uncertainties? Fourth is around the new directors we have on board, the Japanese directors.

How do we look at the executive team from a 3-year perspective? Would we see any changes at the executive level?

Yeah. See, the 18% is on AUM growth.

Opex cost will be on same level at around 26%, 27%. The credit cost, as of now, we don't see a big challenge there, but we will be revisiting the number after the first quarter result looking at the market condition and the challenges we are facing.

It will be mostly dependent on how the higher fuel price as and when it is declared is going to have impact on the inflation, and if the inflation impacts the consumption and the manufacturing, what will be the ultimate impact on the transporters. That will take some time for us to understand.

As of now, we feel there is no change in our estimation on the credit cost. The new directors have joined the board, and there's no change in the way management is functioning.

Management is continued to function, and the board also has recommended Mr. Parag Sharma approved his continuation for next 5 years, and it is going to be AGM for the shareholders' approval.

Sir, what I meant is that presently, they're on the board. Would we see more of Japanese people on the senior management personnel as well in executive roles, in management roles?

No,

no. Right now, directors have come in the board.

We have some people coming in the executive role, but not in the senior management role.

Understood, sir. Understood.

Thank you so much, sir.

Yeah. Good evening, sir.

Am I audible?

Yes.

Hi, sir. Sir, just one thing.

Few times we talked about fuel prices and the fact that, given that state elections might now get over, there could be an increase in fuel prices. Just wanted to understand this fuel price increase feeding into inflation, which may consequently feed into some impact on consumption and eventually the load that truck operators get.

When something like this happens, do we first see this impacting asset quality, or first the impact comes on growth?

See, basically, what happens is when these things happen, the transporters pass on the cost to the customer. They don't absorb the cost, they don't have any challenge on their net earnings.

Net earning of the customer do not get impacted at all. The impact will be when the economy slows down, when there are not enough activity in the economy, when the vehicles are not fully engaged, then the impact comes.

It happens over the period. If the economy revives or keep growing at the same rate, even when the prices go up, the transportation prices, nothing happens to the credit cost or to the transporters' business.

Got it. Sir, in that case, if fuel prices indeed go up, and we'll have to see by what amount it goes up, and if that leads to some slowdown in the economy, you see that the growth might slow down or the number of vehicles sold might slow down, but there is no direct impact on collections and credit costs and asset quality like you mentioned.

Yes.

All right, sir. Second thing is, sir, almost what?

55 days into this West Asia war, in the last maybe 1 week or so or maybe not 1 week, maybe last 1 month or so, have you seen some supply chain disruptions on the ground where truckers are not getting adequate loads? Basically, what I'm trying to understand is are we still at a point in time on 24th April today where this West Asia conflict has had no impact on the economic activity?

See,

as of now, we don't really see that, because there are delays in getting raw materials. This is a challenge of supply.

As far as the transportation slowing down or customers not getting enough load, there are no indication as of now.

Got it, sir. Then, sir, lastly, I just wanted to understand, we have reported a very strong Y-o-Y and Q-o-Q growth in the profits in this quarter.

Just trying to understand, was taking any contingent provisions or management overlay contemplated in the board meeting earlier today?

There were discussion on the same, but we thought unless we have a realistic picture on either the fuel price or the monsoon situation, we will not be able to assess. Definitely there, but since it is not assessed, we have not really acted on that.

We always have conservative approach, and we do have some additional cover.

Got it, sir. Then, sir, my last question is for Parag sir.

Sir, given what has been happening to the bond yields and the fact that we are also active in the debt markets, while you mentioned in your opening remarks that we did not borrow a lot in the last quarter, how were incremental cost of funds trending in March compared to, let's say, Jan and Feb? How are they today in April?

Lastly, for us, when I talk about our liabilities and our cost of borrowings, we all know you will see some benefit in your cost of funds because of a credit rating upgrade. If we were to just remove that element out, do you think that the cost of borrowings and especially the incremental cost of funding has started moving up if we just take out the element of that credit rating upgrade benefit that we have?

I think capital market, we have not borrowed in the last quarter. If I look at what we borrowed in December quarter compared to rates at which we might have borrowed at the earlier rating levels, we did around 7.5 was the last bond issuance we did in the December quarter.

If we had to borrow in March quarter, I think we would have borrowed at close to around 7.70, 7.75 level. That would have been around 25 basis point increase in the bond rates.

Yes, this is at the AA+ rating level, and we have now been upgraded, we have to test the waters with AAA rating. We are, as of now, not in a hurry because of the excess liquidity, and maybe looking at borrowing only after maybe 4 or 5 months.

We'll have to look at the market situation at that point of time. At the earlier rating level, yes, in a quarter, there has been some movement in the bond.

When it comes to other borrowing instrument, I think we are more comfortable because bank, the risk weight comes down, rate should definitely improve. We have reduced our deposit rates.

Overall, I think we should look at lower cost of borrowing in the coming year.

Got it, sir. This is useful.

Thank you very much, and I wish you and your team the very best.

Hi, team. Congratulations on the quarter.

Just continuing on the previous question, how much of the cost of funds benefit will be pass on to borrowers in terms of yield pricing?

Or put

in another way, are we targeting a NIM at current levels or are we targeting a NIM, let's say, 9%, 9.2% sort of levels?

See, we would like to protect the NIM and keep growing the business. It all depends upon the market situation.

If at all we need to pass on some benefit to the customer to grow our business, we will do it. How much, we can't really park it separately and do it.

As and when it matters, it keeps happening. Ultimately, our aim is to retain our existing customer, and then as and when he grows for larger ticket or new vehicles or new machinery, keep funding him.

Okay. Sir, if I ask this question in another way, in your budgeting today, where you budgeted 18% AUM growth for next year, what have we budgeted for margins?

Margin 8.5.

Net interest margin, we have budgeted 8.5 only. Achha,

8.5 only?

Yeah. For the

Sir, why would you budget that?

Pardon?

Why wouldn't you budget a higher NIM because of the cost of funds benefit we are going to get?

As and when the cost of benefit comes, we'll keep doing it. See, Q-on-Q, it'll vary.

Hmm.

You can't pinpoint and put this is as a number.

Understood. Understood.

Sir. Sir, secondly, just on MSME lending, what percentage of this book is unsecured?

What signs should we see to sort of expect growth to come back?

Mostly, we all large ticket, we have a mortgage. Only the small ticket, we do not insist on the mortgage of property.

Exact numbers, we will pass it on through Sanjay.

Okay. Sir, just on growth?

On growth?

Last 2 years, growth was 25%, 30% in MSME after the merger with SCUF happened. Last year, it has moderated to 10%,

12%.

Some part of it could be caution. My question is next year, should we see this scale back up, or are we continuing with our cautious view?

We'll be cautious. Because one, we slowed down because of the US tariff, now because of West Asia.

We will be looking at reviewing the decision and keep working on it. As of now, we'll be conservative.

We'll be looking at around 13% to 15% growth. As the situation improves, we'll increase our lending.

Understood. Understood.

Sir. I'll follow up with Mundra sir for the unsecured percentage data point.

Thanks.

Wish you all the best.

Thank you.

Hi. Good evening.

Congrats on good numbers. My first question is on this very strong growth seen sequentially in PV portfolio.

If you can give some color, whether the new CV financing you picked up on or was it used which kind of increased its momentum? Whether in used, did we increase our market share in our core vintage segment of 5 to 8-year or 5 to 10-year?

Can you give some color about why this high growth came about in this quarter in the CV portfolio?

The new financing have actually gone up. It has improved significantly because sales also has improved.

If you look at the quarter-on-quarter sale, year-on-year quarter, nearly 20% growth is there in the CV sales. That also helped us.

Our new vehicle financing has gone up significantly. Meanwhile, our used also is growing, because we're able to create more penetration in the deeper pockets.

That also is growing.

In terms of market share, did we increase market share in used?

You mean the new vehicle market share?

No. No, used vehicle.

Used CV market share in financing, yeah.

See, we are the largest player in second-hand vehicle. More the penetration, we'll be able to grow our business.

It is increasing, and the rural demand is also quite good for CV now.

Sir, why did the used PV financing portfolio slow in this quarter? Sequential growth rate is very tepid, whereas, I think, we were in a very good momentum for the last 2, 3 years.

Suddenly in this quarter, we've seen the momentum kind of come down significantly. Generally, what did you see in the market to slow down so much?

There's no slowdown in CV. I don't see.

Actually, we have grown in CV.

No, PV. PV, sir.

Used PV

financing,

yeah. PV.

Passenger vehicle, there's nothing to say that, but maybe the focus was more on the CV, but I think we'll be able to grow that back. We'll be strongest in this financial year.

You will be able to see more than 20% growth in passenger vehicle.

This year. Okay.

This year, yeah.

Sir, you said that April, there has been no impact so far, which means that can you presume that collections are going steady? That's number one.

Secondly, again just circling back to the asset quality when I look at the flow forward and the movement in stage 2 and stage 3, especially in stage 2 also, in CV and PV, there has been an increase in a usually strong quarter of collection. Just want to understand, was it something specific somewhere in these two portfolios which led to slightly lesser collections than what you had budgeted, and which is why there was a slight sequential increase in stage 2 and stage 3 this quarter?

See, in the retail lending, if somebody moves from the 0 bucket to 30 bucket or 30 to 60, we normally don't take a stringent action on the customer. We also understand cash flow mismatches are quite common.

There could be some reason, and marginal increase in these buckets doesn't really bother us, because we are financing earning asset which has a good resale value. If it's unsecured, then we should be worried, or if it is personal loan, we should be worried.

These are all the asset which has a good value, and we normally fund conservatively for used vehicle at around 65% of the value and new vehicle, we finance around 80%, 85% of the value. We don't really rush to make an what called collection, but we do reach out to the customer to reminding.

We are not unduly worried about it, a small increase in the stage 2. We don't get upset.

Understood. Thank you and best of luck.

Yeah. Thanks for taking the question.

When we look at it in terms of the disbursements, what has been the proportion of this new vehicles now? Where do we see it going through over next 18 to 24 months?

Because we have been saying that the new vehicle will start contributing to the growth, but just want to gauge in terms of the proportion of disbursements how it's scaling up.

No, I'll give the exact number through Sanjay, but actually our new vehicle proportions are increasing in our disbursement. I believe this is going to become norm over the period because both in passenger vehicle and the commercial vehicle, new vehicle proportions are increasing, and the exact number will be given through Sanjay.

Broadly, would it be in the range of like 10%, 20% today, and do we see it scaling it up to like 30%, 35% over a period because that's something which can drive the growth by 3, 4 percentage points? Okay.

Just wanted to gauge where we are and how you would look at over next 18 to 24 months in terms of the proportion. It's

yeah, it's around must be around 15% now. On new, it's 15% to 20% now.

It may not go to 30%, 35% of the proportion. I know where you're arriving at, Kunal.

You want to arrive at the overall growth where it comes from.

Yeah, 15%, 20% of the

Yeah, 15%, 20%, it may grow by 5% to 10% another 5% to 10% over the next 2 quarters.

Okay. So 15% to 20% of disbursements might go up by another 5%, 10% percentage points.

Yes.

On the new side. When you project this growth of 18-odd percent, if you can just highlight in terms of across the product segments how we are projecting it, maybe on the commercial vehicles, on the passenger vehicles, MSME you indicated it will be 13% to 15-odd percent, maybe tractors will come down from the base of 32.

What are the numbers when we look at the overall projected growth of 18%? Yeah.

See, in CV, it will be around 15% to 18% overall growth. On the passenger vehicle, it will be more than 20%.

Gold, definitely, since our base is small, the growth will be more than 30%. MSME, as I put, the 13% to 15%, but we may change the gear in the MSME as the situation normalizes.

It all depends on quarter-to-quarter. 18% is broad for full year.

This particular quarter, the growth may not be 18%. It will be a little lesser because we are very watchful.

As the situation becomes more positive, then we'll increase our growth rate.

Got it. Perfect.

Margins you are still saying, maybe even though there would be the equity benefit which might flow through, we are still not seeing an improvement because any which ways we are not borrowing usually. You said we would not need to borrow, okay, over next few months at least from the debt market side.

Then, shouldn't it actually contribute to the overall NIMs in terms of the equity contribution itself?

It will be definitely yes. The NIM will definitely expand.

For the budget sake, we have put it a conservative budget. As we told in the beginning itself, some benefit will be passed on to the customer and some benefit will accrue to the bottom line.

Got it. Yeah.

Lastly, in terms of the GS2 plus GS3 on a year-on-year basis, it's still been flat, okay. We have not seen any deterioration as such.

Maybe quarter-on-quarter, there is still some increase out there in few of the segments. When we look at next year, given this kind of a situation of below-average monsoon plus the geopolitical conflict, should we see the increase and maybe even on the credit cost side, would we see compared to what we have been earlier guiding for, would there be a risk to that number?

See, it depends upon how long this situation continues. Imagine if the if you had seen last quarter last week, Friday the Brent price came down to 85.

By Monday morning, it crossed 100. That is the situation.

How do you predict? It is difficult to predict.

As you rightly said, there are challenges. The cost of the manufacturing will go up.

Cost of the products will go up. The cost of the food prices will go up.

It will have some impact. How much impact and whether it will contribute to the slowdown of the economy, because if the economy is still growing when the prices go up and if it's if they are able to pass on to the customer, then it will be a normal situation.

It will not lead to any credit cost increase. If the economy slows down, then only we have a challenge.

I believe the the it all depends upon how the economy will shape after 2 months. When the monsoon arrives, if the monsoon is reasonably decent, all these things will be normal for us.

The monsoon plays truant, and then you have a challenge. This also will be reflected mostly after November, December, not immediately.

Because immediately, there will be festival period, the demand will come back, nothing will be seen. Post November, December only, we will see some stress.

Perfect. This is very helpful.

Yeah. Thank you and all the best.

Yeah.

Hi. My question was actually already answered, sir.

Thank you.

Thank you for joining call today. As last quarter was very good quarter for us, and we hope to come out with similar good numbers next quarter also.

However, there are a lot of ifs and buts in this quarter. First quarter of this financial year is going to be most difficult to predict, but we are quite hopeful to come out with good numbers.

Thank you very much for joining.