Satin Creditcare Network Ltd—the name sounds fancy enough to sell perfume, but it’s actually a micro-loan behemoth with mud on its boots and ₹12,687 Cr worth of loan books across India’s villages.
In Q2 FY26, Satin delivered ₹716 Cr in revenue (+19 % YoY) and ₹52 Cr PAT (+25 % YoY). That’s modest, but the key lies beneath: collections are now at 99 %, and PAR90 has fallen to 3.5 % – from double-digits a few years ago. It’s a miracle only micro-bankers and gods of UP can understand.
At ₹158/share, Satin is valued at just 0.6× book and 10.5× earnings. Debt-to-equity is 2.9×, ROE 7.9 %, ROA 2 %. Not flashy, but steady. The market cap is ₹1,749 Cr vs ₹8,522 Cr borrowings—leverage on leverage, as every NBFC likes it.
But this time, the auditor is smiling (suspiciously): no defaults, no fresh COVID hangover, and a clean-up of ₹266 Cr stressed assets sold to ARCs. That’s how you get back on track after a decade of pain and PowerPoint apologies.
2. Introduction – From Crash to Comeback
Rewind to 2018: Satin was one of India’s top MFIs, handing out micro-loans faster than chai stalls hand out tea. Then came COVID, collection boycotts, and regulatory heart attacks. The balance sheet looked like a crime scene, and its stock fell from ₹500 to ₹100.
Cut to FY26: the company has quietly rebuilt its empire across 23 states & 95,000 villages, serving 3.2 million borrowers through 1,335 branches. AUM has risen to ₹12,687 Cr, up 26 % YoY. And its net NPA is just 1.4 %. Somewhere in Gurugram, the finance team is finally sleeping peacefully.
Satin also owns subsidiaries—Satin Finserv (MSME loans), Satin Housing Finance Ltd (affordable housing), and Taraashna Financial Services Ltd (BC arm). Each is slowly turning profitable, and the group has become more diversified than a startup’s LinkedIn post.
3. Business Model – How to Lend ₹500 and Still Sleep at Night
Satin’s model is simple to describe but complex to execute: borrow at ~10 %, lend at 20 – 24 %, and pray your borrowers repay on time.
MFI segment (88 % of portfolio) – classic group lending to women entrepreneurs. They fund everything from sewing machines to fertilizer bags.
Non-MFI segment (12 %) – includes small business and MSME loans via Satin Finserv and housing loans via Satin Housing Finance.
Average Ticket Sizes – IGL ₹35 k; MSME ₹1.5 L; Housing ₹3 – 18 L.
Funding Mix – 57 % term loans/PTCs, 25 % direct assignment, 10 % NCDs, 7 % ECBs.
Customers are mostly rural (76 % of AUM). Top states: UP (27 %), Bihar (14 %), West Bengal (8 %), Punjab (7 %). The company added 4 lakh new customers in H1 FY24 alone.
Basically, Satin is the Uber of village credit – without surge pricing and with far more paperwork.
4. Financials Overview
Metric
Latest Qtr (Sep’25)
YoY Qtr (Sep’24)
Prev Qtr (Jun’25)
YoY %
QoQ %
Revenue (₹ Cr)
716
600
641
+19.3 %
+11.7 %
Fin. Profit (₹ Cr)
72
63
59
+14 %
+22 %
PAT (₹ Cr)
52
42
43
+24.8 %
+20.9 %
EPS (₹)
4.7
3.8
3.9
+24 %
+21 %
Annualised EPS = ₹4.7 × 4 = ₹18.8; P/E ≈ 8.4×. Margins are tight (10 % financing margin), but the trend is clean and positive – exactly what analysts love to call “green shoots” after a bad loan hangover.
