India's Centrum Capital posts higher Q2 revenue

Overview

• India financial services firm's Q2 consolidated revenue rose 6.2% to INR 8.74 bln

• Company's consolidated net loss attributable widened to INR 958 mln for the quarter

• Modulus Alternatives' India Credit Opportunities Fund III reached first close and made its first investment

Outlook

• Centrum expects significantly improved H2 FY2027 performance on better operating results across businesses

• Plans to optimize financing costs over 18-24 months through Centrum Wealth monetization and Unity Small Finance Bank dilution

• Modulus Alternatives targets gross IRR of 16%+ for India Credit Opportunities Fund II

Result Drivers

• LOWER STANDALONE FINANCING COSTS – H1 standalone profit turnaround was largely driven by a 34% yr/yr reduction in financing costs from optimisation efforts

• UNITY BANK FUNDING AND CREDIT COSTS – Lower deposit costs and loan-book growth supported net interest income growth of 19%, while disciplined underwriting cut credit costs 47%

• INSTITUTIONAL /RETAIL EQUITIES MIX – Higher non-broking income and operating leverage drove a 38% yr/yr increase in H1 gross profit, while on the retail side, Q2 client base increased 20% sequentially

Company press release:

Key Details

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)