Dar Credit and Capital Ltd has reported strong financial results for the fiscal year 2026, showcasing significant growth in profitability, a successful capital raise, and an expanded market presence. The company's performance reflects its strategic focus on operational efficiency and market diversification.
Financial Highlights
The company recorded a substantial increase in net profit, driven by higher revenues and improved margins. Revenue from operations grew by over 20% compared to the previous fiscal year, underpinned by robust demand across its core business segments. The capital raise, completed through a combination of equity and debt instruments, has strengthened the company's balance sheet and provided additional resources for future expansion.
Profitability and Efficiency
Dar Credit and Capital Ltd achieved a net profit margin of 15%, up from 12% in FY25, reflecting enhanced operational efficiency and cost management. The company's return on equity improved to 18%, indicating effective utilization of shareholder funds. Key drivers included increased lending activity, higher fee-based income, and disciplined expense control.
Capital Raise and Balance Sheet Strength
The company successfully raised INR 500 crore through a mix of qualified institutional placement and non-convertible debentures. This capital infusion has reduced its debt-to-equity ratio to 1.2, providing greater financial flexibility. The funds will be deployed to expand its loan book, invest in technology, and enter new geographic markets.
Market Presence and Expansion
Dar Credit and Capital Ltd expanded its branch network by 15 new branches, primarily in Tier II and Tier III cities, enhancing its reach to underserved markets. The company also launched new digital lending platforms, which contributed to a 30% increase in customer acquisition. Its market share in the SME lending segment grew to 8%, up from 6% in the prior year.
Strategic Initiatives
The company's growth has been supported by strategic initiatives including partnerships with fintech firms, adoption of AI-based credit assessment tools, and a focus on green financing. These initiatives have improved customer experience and risk management while aligning with sustainability goals.
Outlook
Management remains optimistic about FY27, targeting a 25% growth in loan book and further margin improvement. The company plans to raise additional capital through a rights issue and explore opportunities in asset management. With a strong capital base and expanding market presence, Dar Credit and Capital Ltd is well-positioned to capitalize on the growing demand for credit in India.
