Kissht prioritizes borrower quality, cost reduction in growth strategy

Indian non-banking financial company Kissht (On EMI Technology Solutions) has initiated a new strategy prioritizing lending quality over sheer volume. The company aims to establish a more sustainable and profitable lending operation by focusing on higher-quality borrowers and reducing overall borrowing costs.

For the first quarter of fiscal year 2027 (Q1 FY27), Kissht reported a consolidated net profit jump of 59% year-over-year to ₹95.1 crore, with operating revenue rising 45% to ₹669.5 crore. This performance reflects a transition towards a more disciplined NBFC model focused on lower credit costs, sustained profitability, and efficiency driven by technology.

Kissht's lending business is primarily composed of two products: unsecured personal loans and loans against property (LAP). As of June 2026, its assets under management (AUM) stood at ₹8,001 crore, with unsecured personal loans making up 92.3% and LAP constituting the remaining 7.7%. The company is concentrating on enhancing borrower quality and expanding its secured lending segment.

The focus on improved borrower quality is already yielding results in cost reduction. Credit costs as a percentage of AUM declined to 6.8% from 8.85% a year earlier. Kissht is offering lower interest rates to higher-quality customers, and cohorts acquired after December 2025 show improved collection efficiency. The company has also resumed lending operations in previously paused geographical areas with high credit risk.

Concurrently, Kissht is developing its LAP business as a second significant growth engine, expecting it to reach break-even by Q3 FY27. Investments are being made in technology such as AI-powered property valuation and digital services. The company is also gradually expanding its financial services, with potential future offerings including gold loans, business loans, and auto loans.