SRG Housing Finance Posts Strong 33% AUM Growth, Profit Jumps 43% YoY

BANKINGFINANCE
Whalesbook Logo
AuthorAnanya Iyer|Published at:
SRG Housing Finance Posts Strong 33% AUM Growth, Profit Jumps 43% YoY
Overview

SRG Housing Finance reported robust Q3 FY26 results, with Gross Loan Assets (AUM) surging 33.42% YoY to ₹943.93 crore. Profit After Tax (PAT) climbed 43.03% to ₹8.21 crore. Net Interest Income (NII) rose 40.87%, boosting Net Interest Margins. The company maintains asset quality and eyes ₹1,000 crore AUM target.

📉 The Financial Deep Dive

SRG Housing Finance Limited (SRGHFL) has reported a robust Q3 FY26 performance, underscoring strong operational execution and market traction.

The Numbers:

  • Revenue: Total Income grew by a healthy 27.33% YoY to ₹51.25 crore.
  • Profitability: Profit After Tax (PAT) surged 43.03% YoY to ₹8.21 crore, while basic EPS rose 25.72% to ₹5.23. EBITDA also saw a corresponding increase.
  • Margins: Net Interest Margin (NIM) on Gross Average AUM improved to 2.68% from 2.53% YoY, indicating better lending profitability. The Cost to Income ratio also saw a favourable reduction to 64.07% from 65.40% YoY, signaling operational efficiency.

The Quality:

  • Asset Quality: While Gross NPAs saw a reduction to 1.83% from 1.98% YoY, Net NPAs experienced a marginal increase to 0.68% from 0.61% YoY. The Capital Adequacy Ratio (CAR) remains exceptionally strong at 38.99%, providing a significant buffer.
  • Growth Drivers: The company's Gross Loan Assets (AUM) jumped an impressive 33.42% YoY to ₹943.93 crore, supported by an 18.02% YoY increase in loan disbursements.

The Grill:
Management commentary highlighted confidence in achieving the ₹1,000 crore AUM target imminently. They emphasized sustained efforts in scaling AUM and disbursements while maintaining asset quality. A notable observation was the increase in the average loan ticket size to ₹13 Lacs and tenure to approximately 10 years, alongside a slight increase in Non-Convertible Debenture (NCD) borrowing in the funding mix for Q3 FY26. (No analyst queries or specific management concerns were highlighted in the provided text.)

🚩 Risks & Outlook

  • Specific Risks: The slight increase in Net NPAs warrants close monitoring. Continued reliance on NCDs for funding necessitates careful management of borrowing costs and debt servicing capabilities.
  • The Forward View: Investors will be keen to see SRGHFL cross the ₹1,000 crore AUM milestone and sustain its asset quality metrics. The company's ability to manage its funding costs and expand its geographical footprint (currently 6 states and 1 UT with 95 branches) will be critical for its next phase of growth.
Disclaimer:This content is for educational and informational purposes only and does not constitute investment, financial, or trading advice, nor a recommendation to buy or sell any securities. Readers should consult a SEBI-registered advisor before making investment decisions, as markets involve risk and past performance does not guarantee future results. The publisher and authors accept no liability for any losses. Some content may be AI-generated and may contain errors; accuracy and completeness are not guaranteed. Views expressed do not reflect the publication’s editorial stance.