CLSA on Credit Access ; O-P, TP cut to Rs 1600

Reported a 7% PPOP beat in 2QFY27, driven by better NII, while creation of a macroprudential buffer kept PAT in line with estimate. ROA exceeded guidance for second straight quarter, prompting management to raise its FY27 ROA guidance by c.100bp. AUM growth accelerated further to 19%, led by retail finance book, which now accounts for c.25% of AUM and continues to see lower delinquencies, per management On asset quality, net slippages rose c.70bp QoQ but remain below steady-state levels Management has pointed to some increase in credit costs in 3QFY27 due to the drought Factor in one more repo rate hike & impact of the draft insurance distribution guidelines, leading us to trim our FY28-29 PAT estimates by 2-4%

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