Ladies and gentlemen, good day, and welcome to the Capri Global Capital Limited Q4 FY 2026 Earnings Conference Call. As a reminder, all participant lines will be in a listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Hardik Doshi. Thank you, and over to you, sir. Good afternoon, everyone, and warm welcome to Q4 FY 2026 earnings call for Capri Global Capital Limited. This is Hardik Doshi, Head of Corporate Finance & Investor Relations. Before we begin, let me read out a brief disclaimer. The discussion on today's call regarding Capri Global Capital Limited's earnings performance is based on judgments derived from the results declared, and information on business opportunities available to the company at this time. The company's performance is subject to risks, uncertainties, and assumptions that could cause results to differ in future. In that context, participants on today's call are advised to consider the same while interpreting the results. A full disclaimer is available on slide 63 of the earnings presentation, which is available on our website. Participants are requested to kindly take a note of the same. Format of today's call would be opening remarks by the management team, followed by Q&A. With that, let me now introduce the management team from Capri Global Capital present on the call. With us today, we have Mr. Rajesh Sharma, Managing Director and Promoter, Ms. Divya Sutar, Executive Director, Business Strategy, Mr. Kishore Lodha, Chief Financial Officer, and Mr. Sanjeev Srivastava, Chief Risk Officer. I would now request our Managing Director, Mr. Rajesh Sharma, to present his opening remarks on the results. Over to you, sir. Thank you, Hardik. Good evening, everyone. I hope you all are doing well. We announced our audited financial results for the fourth quarter of FY 2026 on 30th April. I trust you have had the opportunity to go through our earnings presentation, which is also available on our website. Before I move on to the financial and operational highlights, I would like to touch upon the broader operating environment, and the key developments during the quarter. Recent geopolitical situation triggered demand upheavals due to supply chain disruptions and higher fuel and energy costs. However, India's economy continues to demonstrate resilience amid a mixed and uncertain global macroeconomic backdrop, with domestic high-frequency indicators for March not reflecting much adverse impact. Amidst this soft macro environment, I am delighted to share a key development in the history of Capri Global. The company has secured credit rating from two leading global rating agencies, long-term issuer default rating of BB- with a stable outlook by Fitch Ratings and Ba3 corporate family ratings with a stable outlook by Moody's Ratings, marking a significant milestone in our growth journey, and offering strong validation of our business model, governance standard, and risk management practices. These ratings reflect company's diversified and 100% secured lending portfolio with strong asset quality, robust capitalization, and focus on prudent lending and risk management processes. The stable outlook from both agencies underscore confidence in the company's ability to sustain its growth momentum while maintaining financial discipline. With this backdrop, I am pleased to say that Capri Global delivered strong quarterly performance in Q4 FY 2026, continuing its growth momentum, and maintaining asset quality, while delivering highest ever quarterly profit of INR 283 crores, a 59% increase year on year, and full year profit of INR 949 crores, almost double from the last year. Also, we delivered marked improvement in asset quality this quarter, with gross NPA declining to 0.9%. Now, coming to our detailed business and earnings performance during the quarter. We continued our strong momentum across all lending businesses in fourth quarter FY 2026. Our consolidated AUM stood at INR 36,623 crores, reflecting a robust 60% year on year growth, and 20% quarter on quarter growth. Gold loans grew an impressive 111% year on year, and MSME grew at healthy 23% year on year, while housing loans rose 43% year on year. Disbursement for the quarter rose 116% year onyear to INR 18,145 crores on account of growing customer base, and widening distribution network. Our growth remains granular, diversified, and retail-led, with our customer base now exceeding 6.9 lakhs. For our gold loan business, we delivered a strong, and well-balanced performance in line with our strategic objective of growth driven by branch expansion while maintaining focus on effective risk management. During the quarter, we further expanded our presence in high potential southern and eastern regions of India with a net addition of 89 new branches, mainly 36 in Telangana, 18 in Andhra Pradesh, 8 in Karnataka, and 20 in Odisha to support the next phase of growth. Gold loan AUMs have robust growth to INR 6,965 crore, a sequential increase of 33% quarter on quarter led by healthy customer demand and trust. Our aggregate branch productivity continues to see strong gains, and has improved now from base INR 14 crore per branch in previous quarter to INR 17 crore per branch. Our gold loan employee base increased only by 10% year on year, thus resulting in significant improvement in our employee productivity from INR 1.6 crore a year earlier to INR 3.1 crore now. Considering the volatility in gold loan prices, we maintain conservative loan-to-value ratios for new disbursements while ensuring strong collection practices across the portfolio. Our efforts in controlling asset quality proved effective with gross NPA in gold loans stood amongst the best in the industry at 0.3%, underscoring our focus on management and portfolio quality. Overall, Q4 marked strong performance for the gold loan business, combining growth through geographical diversification alongside risk discipline, and operational execution. With 90% branches now operating above the break-even threshold of INR 5 crore AUM per branch. Our MSME AUM grew to INR 6,465 crore, up 23% on year on year, and disbursements stood at INR 2,550 crores for FY 2026, up 65% year on year, led by steady execution, and network expansion. Within MSME, our Micro LAP business continues to gain traction with AUM rising to INR 824 crores as at the end of Q4 FY 2026. This vertical enable us to serve emerging self-employed borrowers with smaller ticket size requirements. In this segment, our immediate priority is to leverage robust technological interventions to boost sales productivity, and enhance operating efficiency across the expanded network before moving into the next phase of branch expansion. Our housing AUM stood at INR 7,447 crores, delivering a year on year growth of 43%. We continue to see resilient demand across the affordable housing segment, where rising income levels, and a stable interest rate regime are driving demand for housing loans. With foray into high potential South India market by entering states such as Andhra Pradesh in the previous quarter, we now have strengthened our presence in South India with 25 branches. The strategic expansion step toward geographical diversification, increasing portfolio granularity, and support yield expansion over time. Further, our yields in housing finance segment have increased consistently, a result of our efforts to pivot the mix towards self-employed customer segment, which now comprise 74% of AUMs. Our construction finance AUMs saw healthy growth of 38% year on year to INR 5,708 crore, spread across 282 active projects with an average sanction ticket size of INR 48 crore and outstanding portfolio ticket size of INR 20 crore. The book remains granular and well-diversified by geography, reflecting our focus on working with mid-sized developers in metro and tier one cities. We continue to emphasize discipline underwriting through rigorous due diligence, and escrow-based cash flow management, ensuring a risk containment approach. Our total branch network expanded to 1,429 locations in Q4 FY 2026, with a net addition of 98 branches during the quarter and 318 branches during the year. We continue to invest in expanding our network and geographical footprint in line with our goal of becoming a large scale pan-India retail lender. Let me now provide an update on our core earnings. Our blended yields, and spreads on net advances remain healthy in the quarter at 16.3% and 7.1% respectively, driven by increasing share of high yields product, and decline in cost of funds. Our net interest income for Q4 FY 2026 stood at INR 596 crore, up 56% year on year, and FY 2026 stood at INR 1,998 crore, up 50% year on year, driven by strong loan book expansion. In line with our focus on building a diversified, and resilient earnings profile, we continue to strengthen our non-interest income stream in Q4 FY 2026, reinforcing our strategy of generating recurring quality of income. Non-interest income grew 36% year on year to INR 247 crores, contributing 29% of our net total income for the quarter. This strong increase was largely driven by growth in commission on insurance distribution, and co-lending fee income. In our insurance distribution business, we generated net fee income of INR 65 crore during the quarter, and INR 153 crore for the full year. With the help of our upgraded fully digital end-to-end platform, Capri Care launch in Q3, third quarter, we can now issue policy real time with speed and convenience, thus significantly easing insurance adoption across our retail customer base, and scale our insurance distribution. While our loan protection insurance has addressed life-related risk, we have embedded preventive healthcare and wellness solutions such as annual health screening, and cashless consultation into the Capri Care ecosystem, evolving it from a claim-driven product offering into a proactive health and protection partner for our customers. Going forward, we will continue to strengthen our insurance offering for gold loans and MSME customers while expanding into cross-sell for retail health, and motor insurance through digital channels. This digital first integrated approach is expected to drive higher insurance penetration, improve customer engagement, and meaningfully enhance fee income contribution over time. Our co-lending AUM surged 91% year on year, and 9% quarter on quarter to INR 7,783 crore, now accounting for 21% of total AUM, reflecting our strategy of capital-efficient growth. As you would be aware, new co-lending guidelines have come into effect from 1st January 2026, and as per that, industry will start moving to new co-lending guidelines once existing contracts expire. Because of this, there could be temporary slowdown in co-lending volume for couple of quarters, but eventually volume should come back. Going forward, we would also be exploring direct assignment route at a faster pace and higher volume as there is a good demand for the same from partner banks considering the PSL nature of our loan book as well as gold portfolio. Our co-lending and DA income for the quarter is INR 2.97 crore, up 76% year on year and down 16% quarter on quarter, driven by higher dispersal volume, and deeper engagement with partner banks. Our car loan distribution business maintained its steady momentum with origination of INR 3,492 crore in Q4 FY 2026, up 18% year on year, and INR 11,910 crore in FY 2026, up 13% year on year. With a growing footprint and deep relationship across 14 partner banks and financial institutions, we have built a scalable platform with pan-India network in this segment, with potential to monetize further for distribution of other products. On the expenses front, our operating expenses increased 7% quarter on quarter. This was mainly driven by net addition of 692 employees, up 5% quarter on quarter, on account of new branch additions. Our continued focus on operating efficiency is visible with the cost-to-income ratio improving to 49.4% in Q4 FY 2026, compared with 54.8% in Q4 FY 2025. This sharp improvement signifies the benefit of investment in technology, a maturing branch network, rising productivity, and improving operating leverage across our businesses. As a result of margin expansion, operating efficiency improvement, and a strong traction in fee income, our pre-provision operating profit surged 68% year on year to INR 427 crore for the quarter, and robust 97% year on year to INR 1,446 crore for full year. Further, we continued our strong profitability momentum in Q4 FY 2026, delivering a robust PAT of INR 283 crores, up 59% year on year, and INR 949 crore for FY 2026, strong, up strong 98% year on year. Our return ratios considerably improved during FY 2026, with return on average equity at 16.5% versus 11.8% for previous year, and return on average assets at 3.5% for the year versus 2.7% for the previous year. Now coming to our asset quality, we saw marked improvement in our asset quality across each of our business segments. Our gross Stage 2 assets decreased by INR 100 crore, driven by reduction of INR 22 crore in MSME, INR 18 crore in gold, INR 53 crore in construction finance. The decline in construction finance is on account of strong collection efforts, and rollback of three account. Our gross Stage 2 ratio for the quarter was down to 2.8% from 4% in previous quarters. Our gross Stage 3 asset decreased by INR 11 crore quarter on quarter, mainly driven by decrease in housing loan. Our gross Stage 3 ratio improved quarter on quarter by gold loan to 0.3%, for housing loan 1%, and remained flat 3% for MSME, and 0.3% for construction finance. At consolidated level, our gross Stage 3 ratio improved further to 0.9% down sequentially by 61 basis points, while net Stage 3 ratio stood at 0.5%, down 35 basis points sequentially, which is amongst the top quartile in the industry. Our impairment cost for the quarter stood at INR 54 crore. This is largely attributed to Stage 1 provisions on account of increase in the loan book, and included prudent management overlay, and provision to account for evolving macroeconomic conditions of INR 16 crore. Historically, our credit cost has remained in the range of 0.6%- 0.7% of the average total assets. At consolidated level, our provision coverage ratio on Stage 3 assets remained steady at 41.2%, and our segment-wise PCR also remained healthy, and amongst the best in our peer group. Let me now talk about our liability side. Our borrowings increased by 55% year on year, and incremental borrowings sanction limits for the full year was around INR 10,950 crore. We added 15 new lender relationship this year, taking the active relationship now to 35 flat. We also continue to diversify our borrowing by mix, by raising funds through other instruments such as non-convertible debentures and commercial papers. During the year, we raised INR 2,187 crore from non-convertible debentures and commercial papers. In addition, we also closed last week our second public NCD issuance for INR 489 crore with average tenure of four years. As a result of MCLR reduction in our effective effort on repricing existing borrowings, our cost of borrowings declined further by 18 basis points quarter on quarter. Our balance sheet remained robust with low leverage ratio of 3.3x, providing ample headroom to support growth across business segments. Our standalone capital adequacy ratio, CGCL, is about 25.8% and 27.7% for a housing finance subsidiary. Our liquidity remains comfortable with over INR 3,964 crore in cash and bank balances, investments and undrawn credit line across CGCL and CGHFL. On the technology front, this year our focus was something fundamental, or building fast that is to build right. Four years ago, we made a deliberate structural choice to move away from being a traditional NBFC that operates on technology to becoming a platform native AI first financial institution. What we have built is not a static endpoint. It is scalable architecture that will continue to deepen operating leverage as we progressively embedded AI across the technology stack. Let me anchor this in the numbers first. As you all are aware, our AUM grew 60% year on year. Disbursement grew by 83%, while headcount grew just by 19%. That delta between disbursement growth and headcount growth is not incidental. It reflects technology and AI replacing linear growth with intelligent scale. This is clearly visible in our financial outcomes. As mentioned, our cost-to-income ratio for the year has compressed to 49% from 60% year earlier, and return on average assets expanded to 3.5%, and return on average equity expanded to 16.5%. Capri today operates on real-time event-driven architecture, where every customer interaction across sourcing, underwriting, servicing and collection is captured within our in-house lending ecosystem, and instantly converted into decision grade intelligence. In Q4 alone, we processed over 115,000 customers interaction through speech to text pipeline, and executed more than 40,000 multilingual AI voice interactions, entirely autonomous, and without human intervention. The real value, however, is not in the volume. It is in the conversion of interaction into intelligence. These interactions feed into a continuous learning feedback driven system that generated over 285,000 structured intelligence output during the quarter. Each one tagged, scored, and routed into our credit risk and collection engine real time. We have fundamentally graduated from process-based lending to data empowered decisioning. Our bureau rule engine processed over 61,000 applications in Q4 alone. Our automated bank statement analysis pipeline completed over 29,000 assessment without human intervention. What this means in practice is that a growing share of our book is now witnessing reduced variability, compressed stats, and improved portfolio behavior coupled with consistency. During Q4 FY 2026, our Capri Loans customer app recorded over 31.5 lakh digital customer engagement. In terms of financial through output, the app facilitated transaction of approximately INR 784 crore during the quarter. For the full year FY 2026, the app delivered over 85 lakh customer engagement with an aggregate transaction value exceeding INR 1,700 crore. On the collection side, the system operates as a predictive closed loop framework. We triggered approximately 145,000 automated nudges every month driven by AI-led action models. Our platform is built on an API-first microservices-driven architecture, which handled over 310 million external API calls in a single month across our various applications. Behind these external calls are billions of internal interactions that allows us to run the entire lending lifecycles in real time. At this scale, we are no longer operating applications. We are running a unified intelligence platform that power fast, high-quality decisions at a scale. Let me now come to what we believe is the most important strategic milestone in this transformative transformation journey. While most institutions today are consumers of AI, they integrate third party LLMs, layer workflows on top, and position that as transformation. Capri has moved into a different category. We have built and deployed our own specialized small language model, SSLM, that is domain trained model, purpose-built for financial services use cases in India, and already operating in production for collections communication across voice and messaging channels. Because it runs within a controlled closed loop environment, it deliver our critical properties simultaneously. That is low latency, high domain accuracy, zero external data leakage, and near zero hallucination risks. Equally important, every output is auditable, explainable, and aligned with regulatory expectations. This is not an incremental layer on top of existing systems. It is a fundamental shift in how intelligence is created, controlled, and deployed within the organization. I can now say that Capri technology and AI has become a mode and not merely a tool. On the ESG front, I am pleased to share that our ESG practices have been recognized by leading global independent rating agencies, including S&P Global and Morningstar Sustainalytics. Capri Global has achieved an S&P ESG score of 70, ranking 20th globally within its industry, and seventh in the Asia Pacific region, the highest amongst our NBFC peers. We've also been recognized in the S&P Global Sustainability Yearbook as the highest-scoring NBFC in its category, receiving their prestigious Industry Mover Award. Further, the company has established a sustainable financing framework independently validated by Sustainable Fitch through a second-party opinion rated good, and has been assessed as low ESG risk by Morningstar Sustainalytics. These ratings places us firmly among the leaders in ESG practices within the NBFC sector, and reflect our adherence to globally benchmarked standards. Importantly, these assessments are based on publicly available, independently verified data, reinforcing the strength, transparency, and resilience of our operating model. Before we open the floor for questions and answers, let me sum up. We delivered a strong performance in FY 2026 with healthy AUM growth across our key lending segments, supported by a diversified and predominantly retail secured portfolio. Profitability improved during the year, driven by changing mix to high-yield products, improving margin, a strong growth in fee-based income, and operating leverage from existing branch network, while asset quality remained resilient. With a strong capital position, and continued investment in technology and distribution, we are well-positioned to scale efficiently, and are confident of achieving our AUM target of INR 55,000 crores, and sustainable return on average equity of 16%-18%, and return on average assets to 4%-4.5% by FY 2028. We shall now be happy to take questions. Thank you. We'll now begin the question and answer session. Anyone who wishes to ask question may press star and one on their touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assemble. The first question is from the line of Ishank Gupta from Choice Institutional Equities. Please go ahead. Yeah. Hi, sir. Good afternoon. My first question is regarding our AUM mix. Gold loan AUM mix has already reached 46%. As of last quarter, we were targeting around 45% gold loan mix. What would be our target for the gold loan mix? Yeah. Thank you. Gold loan mix looks like the way we are operating, opening more branches, gold loan mix can be reached about 50%. Got it. Got it. As of last quarter, you mentioned that, you were going to, go to RBI to seek permission to open new gold loan branches. In RBI, in February policy, have done the requirement to take the permission. What is the target for new branch addition, gold loan branch addition over the next two years? Next two years, we would like to add about 700 branches-800 branches, including gold loan. Majority will be the gold loan branches. Now, as you rightly said, we don't require any permission, so that will make us plan in a manner that we will be able to those branches in a very time frame manner. This year, we should be able to add about 350 branches in gold loan alone, and all these branches should be operational within this financial year. Got it. Our yields on gold loans have again dropped sequentially by 90 basis points. Last quarter, we were targeting 18% gold loan yield. What would be the sustainable yield for the gold loan segment, and overall blended yield? If you look at this growth has happened largely because we also followed a high co-lending in DA book. In that, we have decided that to capture the market, and also to open the new market, we lower the yield, but we are able to do down sell through the co-lending route. Meeting those banks' criteria, and some of the customer whom we would not otherwise lend, we have decided to lend in the co-lending scheme. Overall, it is an accretion to the, our overall, profitability and contribution per branch. While the yield have gone down, that is compensated by much higher volume growth. Sure, sir, the co-lending AUM in the gold loan segment has reduced sequentially from 39 odd percent to 31%. Going forward for, specifically for gold loan, what would be the target in terms of co-lending? I think as a company between the DA and co-lending, it will remain in the range of 20% is the target. That is overall, 20%-25%? Yes. No, 20%. Not 25%. 20%? 20% overall AUM will remain in the co-lending and DA across mix of all MSME, gold, and housing. Understood. My last question was regarding the cost of funds. Last quarter, we said that we will be targeting a reduction of 20 basis points-25 basis points over the next year. In the quarter itself, we have witnessed a reduction of 18 basis points-20 basis points. Is there a possibility of further reduction? If yes, how much over the course of next two years? Overall basis, cost of fund has come down because we also changed the mix of borrowing by including the debentures and commercial paper. I think this year, looking at the interest rate hike might happen the post-election and other things, I think we should be able to do about 10 basis points- 20 basis points. This year we are not expecting much cost of borrowing go down. Even though we reduce 20 basis points, that will be very good from our perspective. Exit of around 9%-9.1% for the year? 9%, conservatively, you can consider 9%. for 2028, any further reductions? 2028, I think it will also we expect our some point of time credit rating upgrade to happen, and that will be in addition to this, rate reduction. If the credit rating happens in next 6 months-9 months, which we expect to, in that case, the further cost of fund will go down by another 20 basis points. Sir, I would like to add in one last question. Our credit, sustainable credit cost could be 0.6% or 0.7% for the year, because for the quarter it came at 0.8%? Our credit cost will remain by and large in the range of 0.7%. This increase has happened because we are taking the management overlay, as guided by our Board, we, and we are very conservative that way, we taken about INR 16 crore additional management overlay due to macroeconomic environment. Barring that, if you look at our asset quality, it has been best in the quarter in the year. The almost majority of the provisions have also come because of the new loan book. There is no slippage, it just happened. Got it. All the best for the future. Thanks. Thank you. A reminder to all participants that you may press star and one to ask question. The next question is from the line of Siddhesh from PL Capital. Please go ahead. Hi, am I audible? Yes, sir. Hello. Hi. Just wanted to understand on the car loan front. What is the strategy to monetize, and what are the plans for starting other products in that entity? Currently, car loan is a completely distribution business. We are currently distributing the leads generated by our team with about 12+ institution and partner banks. In the times to come, we'll add the more product like used car, credit card, personal loan, and mortgages over the period of next 3 years-4 years. This year we'll be adding the used car, and the advantage will be the same supervisory team and team of 1,800 people will be able to drive the same business, so that cost allocation will happen on the higher revenue. Next year we will be able to see that about INR 20 crore of profit is able to deliver by the car loan entity alone. Idea is and target is in next four, five years, this INR 20 crore has become to significant amount of INR 60, INR 70 crore of income, which is coming purely from the fee income. In that direction, this year we adding another product to used car loan distribution through our partner banks. Understood. How do you see AUM mix changing at the company level? As of now, AUM mix is about 46% gold. I think gold will become about close to 50%. Rest of the three segment of MSME, housing finance, construction finance will range between 16%-18% each. Okay. Lastly, can you help me with your AUM, ROA and ROE targets for FY 2027 in terms of guidance? As I said in my opening remark also, our guidance for the FY 2027, our aim will be to achieve a ROA about 4% and ROE not less than 16%. Understood, sir. That's it from my side. Wishing you all the very best. Thank you, sir. Thank you. The next question is from the line of Hardik Dara from GrowMo Credit Advisors. Please go ahead. Hello. Good evening, sir. Am I audible? Sir, just thank you so much for taking this question. Just wanted to understand the strategy, you know, apart from gold loan on the other three verticals, MSME, HFC and construction finance. How aggressive are we planning to grow these other three verticals, and what can be the growth expectation? I agree that, you know, 16%-18% is the tentative mix. Just wanted to understand that how aggressively will these three grow over the next two years. Individually, I think these segment will also grow in the range about. MSME will grow in the range about 20%-25%. Construction finance will also grow in the range about 25%-30%. Housing will also grow in the 25%-30%. Overall, if you look at our business mix, it is designed in a manner to grow in tandem with the overall growth. Gold has done wonderfully well because gold price increase also helped in the faster growth. We assume that price remains stable, we should be able to grow all the segment together. Gold can still rise more because there are a lot of branch addition also happening. All other segment will rise in the range about 25%-30%. Got it. Thank you, sir. Thank you. The next question is from the line of Suhani Singh from Sejai Capital. Please go ahead. Hello. Hi, good afternoon. I wanted to understand how do you see origination growth trending in the car loan segment? Car loan, if you see, we have seen about 18% growth. We expect our car loan origination will continue to grow in the range of 12%-15% year on year. Next coming year, our more focus will be improving the margins rather than the volume growth alone. FY 2026, we originated about INR 11,910 crore, which was up by 13% year on year. Okay. Okay. With pressure on fee margins despite higher growth volume, where do you see margins stabilizing and profitability settling? You are asking about the car loan or overall? The overall. Overall, we clearly see there are two things. One is the operating scale is kicking in, so that efficiency is coming in where the cost-to-income ratio is coming down and our overall efficiency is going on because of the technology part as well. Another efficiency, I would say that gold loan branches, the old branches which are growing, this is already delivering the high profit because break-even point is long back is crossed,` and more volume the per branch AUM grows, the more profitability improve in the gold loan segment as well. Current our branch per AUM about INR 17 crore, and we make break-even about INR 5 crore. I think, per branch AUM basis, we are among the top three players in the country, and that speaks our profitability of the branch. I think gold loan business will start delivering the higher profitability, this is the per branch AUM in the coming year. As far as the MSME and home loan is concerned, home loan have achieved a base of about INR 7,500, so operating scale will kick in there also, and their margin will significantly improve in the coming year. MSME is already stabilized. MSME margin will remain stable on the similar pattern what was in the current years. Okay. Thank you so much, sir. Thank you. A reminder to all participants that you may press star and one to ask question. The next question is from the line of Prince Choudhary from PINC Wealth. Please go ahead. Hi. Sir, can you share more lights on what are the changes of RBI for the new guidelines of co-lending, and how this will impact our growth for couple of quarters? RBI guideline in the co-lending comes on the part of, one is more clarity. Second, on the loan of moratorium, they have advised that interest accrued should be included in the LTV. Third, the income assessment of the customer above loan of INR 250,000 should be done. These are being implemented across our co-lending partners, and technology integration will take some time. We expect the company to resume at the full volume with the co-lending partners in the quarter of July to September. This by June, I think most of the player will go live. Couple of players have already gone live, and the rest of the partners will go live by the next quarter. I think the full volume we'll be able to see from the September quarter. Thank you. The next question is from the line of Soumya from Nirvan Capital. Please go ahead. Hello, good evening. Thank you so much for the opportunity. I just have couple of questions. Starting with what is the strategic rationale behind entering capital markets, and how do you see this contributing to fee income? Yes. Fixed income, since we are being NBFC always maintain a high liquidity in our treasury, and some of those treasury most of the time remain in the negative carry because we put the money in the debt mutual fund, where negative carry is sometimes even 2.5% - 3%. As against that, we have decided to start this vertical where some part of the book we will maintain in the treasury operations by buying the bond, and down selling them, and also helping some of the issuer to raise a bond from the bond market by managing their public issues. It will contribute to the fee income as well as also to reducing our negative carry in our treasury income. It will be incidental to what we are doing today. I think, next year you will see that once we get the Category I license, we applied, and we have been told by SEBI that by end of June we can have that. You'll see some income coming in. Yeah, our income target, net income target is in the range of about INR 40 crore-INR 50 crore in gross level. At net level, it will be in the range of about INR 20 crore-INR 25 crore. Okay, sir. Got that. Secondly, what is the current scale of revenue contribution from fixed income and bond-related activities? Bond-related activity, contribution, it is likely that it reduces the negative carry first. If we earmark about average INR 600 crore-INR 800 crore we booked will remain, and we expect to reduce almost 3% negative carry on this portfolio. It helps contributing indirectly about INR 25 crore of income to the bottom line. Okay, sir. Thank you so much, sir. That's it from my side. Thank you. A reminder to all participants that you may press star and one to ask question. The next question is from the line of Kushal, an individual investor. Please go ahead. Hello. Yes, sir. You're audible. Yes. Since we are expanding a lot of branches, currently we have 1,400 branches, and those old branches are going to become efficient in next year. Our target is around 700 branches. What is the PAT guidance we are giving for FY 2027? Hello? We have given the PAT guidance of next year, FY 2027, about INR 1,300 crore. INR 1,300 crore. Okay. Thank you. Thank you. The next question is from the line of Ameerka Andekar from HDFC ERGO. Please go ahead. Hello, sir. Am I audible? Am I audible? Yes, yes, you are audible. Yeah, sir. My question is, if you can give like the LTVs on the, on book for the gold loans. We have the disbursement LTVs, but if you can provide the LTVs on the, gold loans which are on the book currently. Portfolio level LTV is about 66%. On the new disbursement, portfolio LTV is about 70%. Okay, understood. On the overall AUM guidance, I think previous quarter we had said we would be doing around INR 50,000 crore-INR 55,000 crore of AUM by FY 2028. Is there any update on that number? I think what we have said as a target for FY 2026, we have surpassed that. Is there any upward guidance on the AUM front? Also in the overall, you have mentioned, you know, individually, MSME would grow between 20%-25%, and construction finance and housing would grow between 25%-30%. In this kind of a mix, how do you see the gold loans also growing? We are, you know, adding branches, so h ow do you see that also growing? If you can give that number. Thank you. Overall growth we are targeting conservatively 25%. We are giving a guidance of INR 46,000 crore by end of FY 2027, and about INR 57,000 crore by FY 2028. We revised the FY 2028 guidelines by about INR 2,000 crore. As gold loan is concerned, you are rightly said that, yes, we are adding more branches, gold loan proportion overall AUM will grow. Gold loan will grow in the range of about 25%-30%. Overall growth may remain in 25%-30% range, but conservatively we are saying 25%. Gold within that segment will grow little higher because we are adding more branches as well. Okay. Got it, sir. Thank you. Thank you. A reminder to all participants that you may press star and one to ask question. The next question is from the line of Kashvi Dedhia from Centra Insights. Please go ahead. Yeah. Thank you for the opportunity. Since the cost of borrowings are declining, how much scope remains further for expansion in stress? Cost of borrowing further decline, I said earlier also that by the year end we are targeting about 20 basis points. We another 20 basis point can also be achieved further from the rating upgrade from the 12 months from the rating upgrade happens. I think we expect next six months some positive news on that. However, it depends on various other factor and it doesn't remain in our complete control. We hope that all the environment and macro environment remain positive. We can expect, and aim for that. Okay. Do we see any impact of recent macro situations on MSME book? So far we have not seen any deterioration in our collection efficiency or asset quality. We have not seen any sign as far as till now is concerned. Okay. Also the decline in capital adequacy appears mainly driven by subsidiary investment. How do we think about it? Like, what will be the capital allocation going forward? Going forward, we will increase the DA co-lending. That will conserve some part of capital. Some point of time we require, we will raise Tier 2 capital also to shore up the capital base. In nutshell, about 18 months- 24 months, our aim is to effectively utilize all the down selling tool of DA co-lending and also raise Tier 2 capital, so, capital requirement is taken care of. Okay. Okay, thank you. That's it from my side. Thank you. The next question is from the line of Pehel Sharma from PG Capital. Please go ahead. Hello. I just want you to put some highlight on the strategic intent, like, what is behind the proposed international bond issuance? International bond issuance, with the purpose to diversify your resources of borrowing, it will give us one of more avenue to borrow the money, and it can be done every year. We, being into lending business, always require the debt capital, and which is one of the major raw materials. I think it is just opening that avenue, and we have got the international rating done. We are little cost-conscious in terms of our cost of funds. Currently because of the macroeconomic environment and West Asia crisis, the hedging cost has substantially gone up. We are waiting that to settle down, and hoping that happens in next two, three, four months. Whenever it happens, we intend to reach, and access the market depending on the underlying situation. Great. Great. In addition with that question, I have one more question that what are the key drivers like behind the improvement in GNPA and NPA during the quarter? It is of course, collection efficiency because lot of emphasis is put not only on the technology, but also on the ground by right hiring, right push, right training program, right AI-enabled videos on media front, and customer communication. That has helped together across all verticals to improve our collection efficiency, and hence our GNPA, net NPA numbers are like that. Okay. Okay. Thank you so much and all the best. Thank you. The next question is from the line of Kalmesh from an individual investor. Please go ahead. Sir, good afternoon. My question is, currently we are at 70% loan to value ratio. What if the gold prices crash by 10%-15%? How would you manage that? I think you have very, very relevant question in terms of current volatility. Gold loan prices will not fall in one single day. Assuming the gold loan prices fall 4%, and customer LTVs breach by to that extent, either we give the customer, ask him to pay additional money to bring back his loan to value within the norm of 75%, or he has to give additional gold to pledge to bring the LTV back in the norm. Telling which, we give him a notice that within 14 days if you don't fulfill, take those goods, margin goods, we have a right to auction the gold, and recover money. Whenever it happens, our teams on ground do collection calling, and able to recover the money. For example, on a INR 1 lakh, 4% gold have fallen, we have to recover INR 4,000. Jewelry worth about INR 5,500 jewelry, and I think a mix of those we are able to do in most of cases. In case the customer don't do, as I said, we have right to auction the gold, and recover money. We hope the gold will not fall 10%-15% in single day. Yeah, sir. Yeah. I just asked a hypothetical question, yeah. Thank you, sir. Thank you. The next question is from the line of Vighnesh Iyer from Sequent Investments. Please go ahead. Hello, sir. Just one question from my side. I wanted to understand, what is the kind of growth that we can see on the insurance income side and fee income side as a whole, you know, in FY 2025. I think insurance distribution is in purely in line with our AUM growth target. Insurance income should also grow in the tandem of about 25%-30%. Overall the fee income? I mean, all the non-interest income. Card loan income will grow about 12%-15%. Insurance income will grow in line with our AUM growth of 25%-30%. Co-lending income, I would say that it will remain more or less same as the last year because co-lending now DA for one quarter will be little lower side. There may not be any growth in the co-lending income, but that will be compensated by the DA, more or less it will remain the same. Okay. Got it, sir. Thank you. Ladies and gentlemen, we take this as a last question. I now hand the conference over to Mr. Rajesh for closing comments. Rajesh, Sir, please go ahead. Yeah. I thank you for participating in the earnings calls today. Should you have any questions, you can reach out to us or to our IR advisor, and we shall be happy to answer your queries. I reiterate, we are on track to achieve an AUM of INR 55,000 crore by FY 2028, with return on average equity of 16%-18%, and return on average assets of 4%-4.5%. Thank you once again, and have a happy week ahead. Thank you. Thank you. On behalf of MUFG, that concludes this conference. Thank you for joining us. You may now disconnect your lines.