The company also expects its cost of funds to decline by at least 100 basis points in the second half of the financial year following a ratings upgrade and recent equity infusion, said Ranvir Singh, Chairman and CEO of OnEMI Technology Solutions.
He added that the company’s loan against property (LAP) business remains on track to turn profitable by the October-December 2026 quarter.
Singh said the company remains comfortable with the performance of its unsecured loan portfolio despite concerns around the impact of higher oil prices and the West Asia conflict.
“The outlook we have is that the risk is playing out very strongly, and the same thing we’ll see over the next few quarters as well,” he said.
He added that the company had tightened underwriting norms in the previous quarter but has since eased some parameters after seeing better-than-expected credit performance.
OnEMI continues to guide for Stage 3 assets at 2.25%, with Singh saying, “I don’t think we see anything significantly flowing from Stage 2 to Stage 3.”
The company expects lower borrowing costs to support margins in the coming quarters. Singh said the ratings upgrade has reduced the cost of incremental borrowings by 200-225 basis points, while the recent capital raise has strengthened lender confidence.
Singh ruled out acquisitions, saying the company remains on track to exceed its 2026-27 AUM target through repeat customers and its existing lending franchise. “This is a complete organic growth that we are seeing,” he added.
OnEMI currently has a market capitalisation of ₹5,439.47 crore.
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