SRG Housing Finance Surges Past ₹900 Cr AUM, Profit Jumps 43%

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AuthorRiya Kapoor|Published at:
SRG Housing Finance Surges Past ₹900 Cr AUM, Profit Jumps 43%
Overview

SRG Housing Finance Limited (SRGHFL) reported robust Q3 FY26 results, with Gross Loan Assets (AUM) growing 33.42% YoY to ₹943.93 crore, nearing its ₹1,000 crore target. Profit After Tax (PAT) surged 43.03% YoY to ₹8.21 crore. Net Interest Income (NII) grew 40.87%, and Net Interest Margin (NIM) improved to 2.68%. Management highlighted network expansion and disciplined asset quality maintenance.

📉 The Financial Deep Dive

SRG Housing Finance Limited (SRGHFL) has unveiled a strong set of unaudited results for Q3 FY26, showcasing significant year-on-year expansion.

The Numbers:

  • Gross Loan Assets (AUM): Grew by an impressive 33.42% YoY to ₹943.93 crore from ₹707.47 crore.
  • Loan Disbursements: Increased by 18.02% YoY to ₹107.34 crore.
  • Total Income: Rose by 27.33% YoY to ₹51.25 crore.
  • Net Interest Income (NII): Demonstrated robust growth of 40.87% YoY to ₹24.23 crore.
  • Net Interest Margin (NIM): Improved to 2.68% from 2.53% in Q3 FY25.
  • Profit Before Tax (PBT): Surged by 44.91% YoY to ₹10.39 crore.
  • Profit After Tax (PAT): Grew substantially by 43.03% YoY to ₹8.21 crore.
  • Basic Earnings Per Share (EPS): Increased by 25.72% YoY to ₹5.23.
  • EBITDA: Reported at ₹32.03 crore, up from ₹25.39 crore YoY.

The Quality:
Asset quality remains a focus, with Gross NPAs improving to 1.83% (from 1.98% YoY), while Net NPAs were sustained at 0.68% (vs 0.61% YoY). The Cost to Income ratio saw a minor improvement, settling at 64.07% (from 65.40% YoY). Return on Average Equity (ROAE) stood at 2.90% for the quarter, a slight uptick from 2.80% in the prior year period. The company maintains a healthy Capital Adequacy Ratio (CAR) of 38.99%.

The Grill:
While the provided text is a factual summary and not a transcript analysis, management commentary highlighted the company's strategic focus. Mr. Vinod K. Jain, MD, indicated the company is 'nearing its target of ₹1,000 crore AUM', currently at ₹944 crore. Growth drivers cited include network and team expansion, supported by timely capital availability. Management reiterated its commitment to maintaining asset quality, with targets of Gross NPAs below 2% and Net NPAs between 0.60-0.75%. New approvals in Q3 FY26 were ₹130 crore, with an average ticket size of ₹13 lakh and tenure of approximately 10 years. Management also noted that certain costs were 'front-ended due to expansion efforts', suggesting potential for future operational efficiencies.

🚩 Risks & Outlook

The company operates a loan book comprising 70.77% Housing Loans and 29.23% Loan Against Property (LAP), with a significant majority of loans (93.87%) in rural areas, primarily to the self-employed segment (74.60%). Outstanding borrowings have increased to ₹799.28 crore from ₹566.06 crore YoY, funded by banks, FIs, and NCDs.

Potential forward-looking risks, as per the disclaimer, include changes in the economic environment, tax laws, inflation, and litigation. Investors should watch for continued AUM growth, asset quality trends, and the realization of benefits from the current expansion phase in the coming quarters.

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