Kissht Reports Strong Profit Growth Amid Lending Strategy Shift

Kissht, operating under the banner of OnEMI Technology Solutions, has demonstrated robust financial performance in the first quarter of fiscal year 2027, signaling a successful transition towards a more quality-centric lending strategy. The newly listed non-banking financial company (NBFC) reported a consolidated net profit of ₹95.1 crore, marking an impressive 59% surge compared to the same period last year. This profit acceleration was underpinned by a substantial 45% year-on-year increase in operating revenue, which reached ₹669.5 crore.

The company's loan book has expanded to ₹8,001 crore in Assets Under Management (AUM). A significant portion, ₹7,384 crore or 92.3% of the total AUM, is comprised of unsecured personal loans. Complementing this, the recently introduced loans against property (LAP) vertical has rapidly contributed ₹617 crore, representing 7.7% of the AUM, indicating early traction for this secured lending product.

Management has clearly articulated a strategic reorientation, moving away from aggressive expansion to a more disciplined approach focused on customer quality. This pivot involves a deliberate strategy to accept potentially lower initial yields in exchange for reduced credit risk, a move designed to attract a more stable investor base and institutional capital. The company's stated objective is to progressively onboard higher-caliber customers each year.

Evidence of this enhanced credit discipline is reflected in the company's credit cost metrics. For Q1 FY27, credit costs decreased to 6.8% of AUM, a notable improvement from 8.85% in the prior year and down from 7.02% in the preceding quarter. This reduction suggests a healthier loan portfolio and more effective risk management practices.

Furthermore, Kissht has successfully lowered its cost of borrowing. Recent funding rounds have secured capital at interest rates between 12% and 12.9%, approximately 150 basis points lower than rates observed in FY26. The company anticipates further reductions in its cost of funds, potentially bolstered by upcoming rating upgrades from prominent agencies like CRISIL and India Ratings, which would enhance its creditworthiness.

The expansion into secured lending through the LAP business, initiated in Q4 FY25, is gaining momentum. This segment now spans 101 branches and is projected to achieve operational breakeven by the third quarter of FY27. A key driver of its early success is the cross-selling to existing personal loan customers, with over 40% of LAP clients originating from this established base, demonstrating effective synergy within Kissht's customer ecosystem.

In terms of geographic reach, Kissht has strategically resumed operations in approximately 180 of the 450 previously paused locations. The company currently maintains a presence in nearly 17,000 pin codes, which collectively account for 98% of its revenue, positioning it for sustained and efficient growth across key markets.