In a credit-hungry, growing economy, OnEMI Technology transitioned from a branch-based lender to a tech-driven digital loans provider. While legacy players like Bajaj Finance and Chola Fin have built business over decades, OnEMI is attempting to redefine efficiency in the segment. The peer benchmarking of OnEMI vs Bajaj Finance vs Chola Fin vs HDB Financial will strip away the marketing jargon and provide you with audited financials, operational KPIs, and valuation benchmarks so that you can take an informed investment decision.

OnEMI Technology Peer Comparison: Operational Benchmarking

While traditional players focus on high-value asset-backed loans (Vehicle/Home), OnEMI operates in the high-frequency, small-ticket digital lending space.

OnEMI vs Bajaj Finance vs Chola Fin vs HDB Financial (As of 9M FY 2026)

OnEMI’s 56.92% AUM growth is the highest in the group. Investors should note that OnEMI is a high-volume player, while legacy players like Bajaj and Chola Fin are low-volume but high-ticket-size players. This strategy provides a good quality of loan book.

Read Also: OnEMI Technology IPO Review

OnEMI Technology Peer Comparison Analysis: Efficiency, Profitability & Asset Quality

OnEMI’s ROA of 8.48% is significantly higher than the industry benchmark set by Bajaj Finance (3.10%). This is a result of the high-interest yields from with small-ticket unsecured lending.

OnEMI’s Net Margin is 12.77%, which lags behind Bajaj Finance (19.35%) and Cholamandalam (16.80%). Despite having a superior ROA (8.48%)—their ability to convert that into final net profit is weaker than the giants. The high operational costs are eating away high yields they generate from borrowers, making their “Final Profitability” less efficient than traditional peers.

OnEMI reports a Cost-to-Income ratio of 55.66%, which is significantly higher than industry benchmarks like Bajaj Finance (33.70%) and Cholamandalam (38.80%). This indicates that for every rupee of income generated, OnEMI spends nearly 56% on operations, technology, and customer acquisition. While common for growing fintechs, it suggests that the company has yet to achieve the “Operating Leverage” that allows legacy players to increase income to the bottom line.

Asset Quality

In unsecured lending, the biggest fear for an investor is the rise in Non-Performing Assets (NPAs). Here, we analyze if the company has enough “buffer” to withstand a credit cycle.

OnEMI’s Gross NPA (GNPA) stands at 2.90%, nearly double that of Bajaj Finance (1.56%). While the Net NPA (0.38%) looks clean due to aggressive provisioning, the high GNPA shows that a larger percentage of borrowers are defaulting at the source. This is a characteristic risk of small-ticket, unsecured digital lending where the “intent to pay” is more volatile compared to secured asset-backed loans.

OnEMI operates in the unsecured digital lending space, whereas peers like Chola Fin and HDB Financial have significant exposure to secured asset-backed loans (Vehicles, Home, Business assets).

In the event of an economic downturn, unsecured loans are the first to default. Unlike Chola or HDB, OnEMI does not have physical collateral to repossess and recover losses. This makes their 2.90% GNPA much more “sensitive” to market shocks than the NPAs of a secured lender.

Is OnEMI Technology IPO Fairly Priced?

Listed peers like Bajaj Finance, Chola Fin, and SBI Cards trade at an average P/E of 26x and a P/B of 4.0x. OnEMI is entering the market at a P/E of ~13.37x and a P/B of 0.91x. Generally, fintechs command a premium over traditional NBFCs due to their scalability.

Final Words

In summary, OnEMI is a High-Yield, Low-Leverage play in the segment, entering the market at a discounted valuation compared to its peers. However, this aggressive growth comes with notable constraints. The company’s unsecured loan portfolio carries a higher inherent risk. While the established players offer the stability of secured assets.

Investors must weigh this attractive entry valuation against the vulnerabilities of unsecured lending and high operating overheads. Please note that a peer comparison is not the sole benchmark to find a good IPO. Many wealth creators may look unattractive or risky at an initial stage, but if a company has good fundamentals and effectively manages its asset quality, it eventually grows.

Disclaimer: OnEMI Technology peer comparison analysis is based on financial data provided in the RHP for the periods ending 31 March 2025 and 31 December 2025. This is not an investment advice please do thorough research before investment.

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.