1. At a Glance – Blink and You’ll Miss the Turnaround
₹1,751 crore market cap. Stock chilling at ₹159. Trading at 0.67× book value like it personally offended Mr. Market in the past. P/E at 9.1× while the industry median flirts with 25×. ROE still modest at 7.5%, but Q3 FY26 PAT clocked ₹72 crore, up a casual 404% YoY.
AUM is now ₹13,341 crore (Q3 FY26), collections are behaving like a topper kid (~99% cumulative), and GNPA drama is slowly getting therapy. Satin Creditcare is no longer whispering “turnaround story” — it’s starting to clear its throat loudly.
But let’s not get carried away like a bull market WhatsApp forward. This is still a leveraged microfinance lender with a complicated past and a balance sheet that demands respect, not blind faith. So… revival or just a dead cat doing parkour? Let’s open the books.
2. Introduction – Once Bitten by MFIs, Twice Shy
If you’ve survived the Indian MFI cycles, you already know the trauma: demonetisation, COVID, regulatory whiplash, borrower stress, write-offs, ARC sales, and investor patience tested harder than UPSC prelims. Satin Creditcare has lived through all of it.
Founded as a hardcore microfinance player, Satin expanded into MSME lending, housing finance, and business correspondent services. Then came the rough years — profits evaporated, NPAs spiked, confidence tanked. The stock price chart looked like a heart monitor during a panic attack.
Fast forward to FY25–FY26, and the tone has changed. Profits are back, AUM is growing, capital has been raised, stressed assets have been sold, and management is openly talking about stability instead of survival.
But MFIs are never linear stories. They’re cyclical, political, and extremely sensitive to execution. So before we clap, let’s understand what Satin actually does, how the numbers stack up, and whether this recovery has
legs or just good PR.
3. Business Model – WTF Do They Even Do?
Think of Satin as a financial kirana store for Bharat.
Core Engine: Microfinance (88% of H1 FY24 revenue)
- Income Generating Loans (IGL) to rural women borrowers
- Group lending, small ticket sizes, high frequency repayments
- 76% rural portfolio, presence across 96,000 villages
Add-ons (12% but growing):
- MSME loans via Satin Finserv (secured retail MSME lending)
- Housing finance via Satin Housing Finance (affordable + micro housing)
- Business correspondent services through Taraashna Financial Services
Geographically, Satin is not playing favourites:
- UP (27%), Bihar (14%), WB (8%), Punjab (7%)
That’s a proper North-East belt exposure — high yield, high risk, high adrenaline.
In short:
➡️ High-yield lending
➡️ High operating leverage
➡️ High sensitivity to collections
This is not a lazy compounder. This is active finance.
4. Financials Overview – The Numbers Finally Talking Sense
📊 Q3 FY26 Performance Table (₹ crore)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 747 | 684 | 788 | 9.3% | -5.2% |
| Financing Profit | 96 | 19 | 71 | 404% | 35% |
| PBT | 93 | 15 | 69 | 520% | 35% |
| PAT | 72 | 14 | 53 | 404% | 36% |
| EPS (₹) | 6.51 | 1.29 | 4.81 | 404% | 35% |
👉 Translation: Profit recovery is real, but revenue growth is still moderate. Margin recovery is doing the heavy lifting.
Question for you: Would you rather trust margin recovery or topline growth in MFIs?
5. Valuation
