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Earnings Call Transcript

Emerald Finance Earnings Call Transcript: Key Takeaways

Emerald Finance reported Q1 FY27 consolidated income of ₹9.44 Cr (up 39.97% YoY) and PAT of ₹4.88 Cr (up 52.72% YoY). The company is pivoting towards Early Wage Access (EWA) and MSME lending.

Why this was an Alfa AlertManagement guides 66% Net Profit growth for FY27 (explicit single-year guidance).
Guidance and delivery
Management target Net Profit 66.0% FY27
Highlights
Revenue growth39.97% YoY
MarginsPAT margins stable at 50-51%; likely 40-45% as interest costs rise.
Order bookAUM at ₹125 Cr; EWA run rate ₹26 Cr monthly.
Demand visibilityStrong corporate onboarding for EWA with 32 new organizations.
Management confidenceHigh; reaffirmed EPS guidance of 7 despite slow Q1.

Growth

Revenue grew 39.97% YoY; Net Profit rose 52.72% YoY with diluted EPS improving to 1.44 from 0.92.

Outlook

Management reaffirmed FY27 EPS guidance of ₹7. Targeting 40-50% PAT CAGR over next 2-3 years without equity dilution.

Risks

Gold loan business saw a dip due to RBI restrictions on banks. Rising NPAs mentioned but currently below provisions.

Last quarter's promises, checked

Delivered

  • Guided EPS ~4.36 for FY26 → delivered 4.36 (= BEAT)
  • Guided 150-200 new corporates/year → delivered 32 in Q1 (~128 run-rate) (= BEAT)
  • Guided EWA revenue share 8% for FY26 → delivered 10.5% in Q1 (= BEAT)

Partly delivered

  • Guided EWA run-rate ₹11.5-12Cr/qtr → delivered ₹26Cr/month in Q1 (= BEAT)
  • Guided new product launches (Insurance/SIP) → integrations in advanced stages (= PARTIAL)

Missed

  • Guided FY27 PAT ₹32-40Cr → Q1 PAT ₹4.88Cr (~₹20Cr run-rate) (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: EMERALD. Summary written with AI assistance from the document.

Read the document ↗

Emerald Finance Ltd: key numbers

Share price
₹63.02
Market cap
₹212.8 Cr
Revenue (annual)
₹31.17 Cr
Net profit (annual)
₹14.47 Cr
P/E (TTM)
13.1×Sector 22.0×
Promoter holding
59.70%+0.00% QoQ
FII holding
1.78%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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