Satin Creditcare drops 4% after Q4 results; Here's why profit declined 67%

Shares of Satin Creditcare Network slipped over 4 per cent on Thursday's session after the company's net profit declined by 67.2 per cent year-on-year (Y-o-Y) in the fourth quarter ended March 2025 (Q4FY25). 

 

The microfinance lender's stock fell as much as 4.55 per cent during the day to ₹160.2 per share, the biggest intraday loss since April 7 this year. The stock pared losses to trade 3.3 per cent lower at ₹162.1 apiece, compared to a 0.09 per cent decline in Nifty 50 as of 10:11 AM. 

 

Shares of the company have been range-bound for over two weeks, but have recovered by over 25 per cent from its lows of ₹131, which it hit early last month. The counter has risen by 8 per cent this year, compared to a 3.2 per cent advance in the benchmark Nifty 50. Satin Creditcare Network has a total market capitalisation of ₹1,799.02 crore, according to BSE data.  

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Satin Creditcare Q4 Results breakdown

 

The microfinance lender's standalone net profit declined by 67.2 per cent Y-o-Y to ₹41 crore in Q4FY25 due to a rise in credit costs and muted loan growth.

 

For the financial year ended March 2025, Satin’s net profit fell by 48.8 per cent to ₹217 crore, from ₹423 crore in FY24. Its stock closed 2.66 per cent lower at ₹167.60 per share on the BSE. Revenues for the quarter declined by 5.4 per cent Y-o-Y to Rs 562 crore.  

 

 

Net interest margins fell from 14.2 per cent in Q4FY24 to 11.8 per cent. Impairment costs of financial instruments rose from ₹64.16 crore in Q4FY24 to ₹105.19 crore in Q4FY25. The company’s AUM grew by 6.8 per cent Y-o-Y to ₹11,316 crore as of the end of March 2025. 

Satin Creditcare management commentary

 

H P Singh, chairman and managing director, Satin Creditcare, told Business Standard that the decline in profit was attributable to a significant rise in credit costs and muted growth in assets under management (AUM). 

 

At present, the company is not providing growth guidance. It will assess how the first quarter ending June 2025—which coincides with the summer season and potential heatwave risks—unfolds. Growth in FY26 is expected to be better than FY25, Singh added.