India Shelter Finance Corporation Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript India Shelter Finance Corporation Ltd filed with BSE on 07 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
India Shelter Finance reported AUM growth of 29% year-on-year to Rs. 11,044 crores for FY26, with quarterly disbursements crossing Rs. 1,000 crores for the first time in Q4. PAT for the quarter came in at Rs. 138 crores, up 27% year-on-year, with return on equity at 17.6%, while asset quality metrics improved with Gross Stage-3 at 1.2% and Net Stage-3 at 0.9%. Management discussed a cautious operating environment due to LPG supply disruptions and geopolitical tensions, and set out growth and margin targets for the coming years.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
AUM: Rs. 11,044 crores (FY26)
p. 4
“the AUM growing at 29% year-on-year to Rs. 11,044 crores”
Rupinder Singh, page 4 of the filed PDF · View the filing
Disbursement: more than Rs. 1,000 crores (Q4FY26)
p. 4
“In Q4FY26, for the first time, our disbursement crossed Rs. 1,000 crores.”
Rupinder Singh, page 4 of the filed PDF · View the filing
Branch additions: 41 branches (FY26)
p. 4
“for the year, we have added 41 branches, in line with our branch expansion strategy of adding 40 to 45 branches each year”
Rupinder Singh, page 4 of the filed PDF · View the filing
30+ DPD: 4% (Q4FY26)
p. 4
“On asset quality metrics, 30+ has improved by 100 bps, quarter-on-quarter to 4%.”
Rupinder Singh, page 4 of the filed PDF · View the filing
Gross Stage-3: 1.2% (Q4FY26)
p. 4
“Gross Stage3 improved by 29 bps, quarter-on-quarter to 1.2%.”
Rupinder Singh, page 4 of the filed PDF · View the filing
Net Stage-3: 0.9% (Q4FY26)
p. 4
“And net Stage-3 improved further by 23 bps to 0.9%.”
Rupinder Singh, page 4 of the filed PDF · View the filing
PAT: Rs. 138 crores (Q4FY26)
p. 4
“PAT for the quarter came at Rs. 138 crores, registering a growth of 27% year-on-year and 11% quarter-on-quarter.”
Rupinder Singh, page 4 of the filed PDF · View the filing
Return on equity: 17.6% (Q4FY26)
p. 4
“Return on equity further improved to 17.6% in this quarter.”
Rupinder Singh, page 4 of the filed PDF · View the filing
Net worth: Rs. 3,198 crores (Q4FY26)
p. 4
“Our net worth now stands at Rs. 3,198 crores.”
Rupinder Singh, page 4 of the filed PDF · View the filing
Portfolio yield: 14.8% (FY26)
p. 5
“Our portfolio yield is 14.8%, down by 10 basis points year-on-year basis.”
Ashish Gupta, page 5 of the filed PDF · View the filing
Disbursement yield: 14.6% (Q4FY26)
p. 5
“Our disbursement yield in Q4 was 14.6%.”
Ashish Gupta, page 5 of the filed PDF · View the filing
Bucket cost of funds: 8.2% (Q4FY26)
p. 5
“Our bucket cost of fund is 8.2%, while our marginal cost of fund in Q4 was 7.9%.”
Ashish Gupta, page 5 of the filed PDF · View the filing
Net interest income growth: 31% (Q4FY26 year-on-year)
p. 5
“Net interest income for quarter is up by 31% year-on-year on the back of strong growth in our AUM and improvement in spreads.”
Ashish Gupta, page 5 of the filed PDF · View the filing
Cost to income ratio: 36% (Q4FY26 and FY26)
p. 5
“Cost to income for the quarter and year is at 36%, down by about 100 basis points year-on-year.”
Ashish Gupta, page 5 of the filed PDF · View the filing
Credit cost: 30 basis points (quarter), 50 basis points (year) (Q4FY26 and FY26)
p. 5
“Including this, our credit cost for the quarter and year is 30 basis points and 50 basis points respectively, in line with our guidance for medium term.”
Ashish Gupta, page 5 of the filed PDF · View the filing
BT-out: 4.5% (FY26)
p. 6
“BT-out for the year is down to 4.5%, down by about 80 basis points year-on-year.”
Ashish Gupta, page 6 of the filed PDF · View the filing
Liquidity: more than Rs. 600 crores (as of call date)
p. 6
“we are comfortably placed with liquidity of more than Rs. 600 crores and undrawn sanction of Rs. 1,400 crores.”
Ashish Gupta, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Branch additions — 40 to 45 branches per year · ongoing
stated firmly by Rupinder Singh
p. 5
“Branch addition of around 40 to 45 for the year.”
Rupinder Singh, page 5 of the filed PDF · View the filing
Spreads — more than 6% · medium term
stated firmly by Rupinder Singh
p. 5
“Maintaining the spreads of more than 6% in the medium term.”
Rupinder Singh, page 5 of the filed PDF · View the filing
Credit cost — 40 to 50 bps · medium term
stated firmly by Rupinder Singh
p. 5
“Credit cost to remain between 40 to 50 bps.”
Rupinder Singh, page 5 of the filed PDF · View the filing
Loan/AUM growth — 25% to 30%; Rs. 30,000 crores AUM · next 3 years, by 2030
stated conditionally by Rupinder Singh
p. 5
“Loan growth of 25% to 30% for next 3 years, with a clear goal of reaching Rs. 30,000 crores AUM by 2030.”
Rupinder Singh, page 5 of the filed PDF · View the filing
Fixed-rate portfolio funded by variable-rate liabilities — about 5% · FY27
stated firmly by Ashish Gupta
p. 6
“We are committed to further bring this down to about 5% in FY '27.”
Ashish Gupta, page 6 of the filed PDF · View the filing
OPEX to AUM — 15 to 20 bps reduction per year
stated firmly by Rupinder Singh
p. 10
“What is our objective? Every year, it should come down by 15 to 20 bps and things look very well on track.”
Rupinder Singh, page 10 of the filed PDF · View the filing
Disbursement growth — beyond 20% · FY27
stated as an aspiration by Rupinder Singh
p. 11
“I feel that this year we will cross 20% of disbursement number which we are quite confident of and we will do anyway beyond that piece.”
Rupinder Singh, page 11 of the filed PDF · View the filing
Branch network — 500 branches · by 2030
stated as an aspiration by Rupinder Singh
p. 12
“network in a market which is distributed in terms of 307 branches, which is going to reach by 2030 up to 500 branches eventually”
Rupinder Singh, page 12 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said it is a watchful situation but has not seen impact in customer behavior as of March.
Answered by Rupinder Singh
Asked by Adityapal: Is credit behavior being impacted by negative news around shortages?
p. 6
“But as of now, typically as we close the March month, we didn't find much of the difficulty in terms of customers. But yes, it is a cautious environment.”
Rupinder Singh, page 6 of the filed PDF · View the filing
Management said disbursement growth of around 20% this year should be sufficient to achieve 27-28% AUM growth given falling BT-out.
Answered by Rupinder Singh
Asked by Kunal Shah: What is the disbursement growth outlook given the revised AUM growth guidance?
p. 8
“I think even if we are able to disperse, say, 20% of growth in terms of disbursement here, we will be able to achieve the numbers what we are talking about in terms of the 27%-28% AUM growth.”
Rupinder Singh, page 8 of the filed PDF · View the filing
Management said co-lending remains a small test business with no planned scale-up included in the budget.
Answered by Rupinder Singh
Asked by Kunal Shah: What is the status and outlook for co-lending business?
p. 8
“In our plan, in our budget, we are not including any of the numbers which is around the co-lending.”
Rupinder Singh, page 8 of the filed PDF · View the filing
Management said the ratio is expected to remain broadly stable between LAP and HL going into FY27.
Answered by Rupinder Singh
Asked by Shubhranshu Mishra: What is the split between LAP and home loan disbursements and outlook for FY27?
p. 10
“It is 56%-57% for HL and remaining is LAP. That is going to be the same range bound.”
Rupinder Singh, page 10 of the filed PDF · View the filing
Management attributed the improvement to organic SARFAESI-driven resolutions on accounts that had earlier moved into Stage-3.
Answered by Rupinder Singh
Asked by Mayank Mistry: What explains the improvement in asset quality and credit cost this quarter?
p. 11
“So, most of these resolutions that is purely on basis of that piece in an organic form.”
Rupinder Singh, page 11 of the filed PDF · View the filing
CFO said part of the NIM increase came from recovering previously unaccrued interest during NPA resolutions in Q4.
Answered by Ashish Gupta
Asked by Varun Palacharla: What explains the margin expansion beyond lower cost of borrowing?
p. 13
“while doing the resolution of these NPA, we end up recovering a portion of interest, which we had not accrued earlier. So, this is also contributing to increase in the NIM growth from 9% to 9.5%.”
Ashish Gupta, page 13 of the filed PDF · View the filing
Management said competitive pressure is present across all markets but has not been a specific point of concern.
Answered by Rupinder Singh
Asked by Meghna Luthra: Is there any state or pocket seeing a sharp rise in competition that could impact yield or growth?
p. 13
“So, it is not a point of concern at all. Every market, every region have a certain set of dominating players here and there.”
Rupinder Singh, page 13 of the filed PDF · View the filing
Management said Rajasthan's share is expected to gradually decline as other geographies grow faster.
Answered by Rupinder Singh
Asked by Miten Lathia: Will Rajasthan concentration reduce over time?
p. 14
“So, going forward, Rajasthan concentration is going to ease down by virtue of other geographies, their delivery mechanics are going to go up basically.”
Rupinder Singh, page 14 of the filed PDF · View the filing
CFO said the company is comfortably above the regulatory PBC threshold.
Answered by Ashish Gupta
Asked by Prithviraj Patil: What PBC level is the company currently operating at?
p. 14
“So, on the PBC front, we are comfortably placed at about 64%.”
Ashish Gupta, page 14 of the filed PDF · View the filing
CFO confirmed the additional provisioning was a management overlay applied to Stage-2 assets due to macro caution.
Answered by Ashish Gupta
Asked by Kunal Shah: Is the increase in Stage-2 provisioning entirely due to management overlay?
p. 18
“Considering the overall macro environment and we have also gone through the RBI circular, it says that there should be minimum 1.5% for home loan and 2.5% for LAP loan should be the minimum base threshold for ECL.”
Ashish Gupta, page 18 of the filed PDF · View the filing
CFO detailed the interest rate reset structure across variable, semi-variable, and fixed rate books.
Answered by Ashish Gupta
Asked by Kunal Shah: What is the current mix of fixed versus floating rate assets and liabilities?
p. 19
“about 48% of the book is there, which is the fixed rate book altogether.”
Ashish Gupta, page 19 of the filed PDF · View the filing
Risks flagged
LPG supply disruptions and geopolitical tensions creating a cautious operating environment
p. 3
“Recent LPG supply disruptions and related availability issues in some markets created short-term operating challenges for households and small businesses.”
Rupinder Singh, page 3 of the filed PDF · View the filing
Uneven monsoon patterns affecting rural and semi-urban cash flows
p. 3
“rural and semi-urban markets have faced temporary stress from uneven and abnormal monsoon patterns across certain regions, impacting agricultural cash flows and informal income segments”
Rupinder Singh, page 3 of the filed PDF · View the filing
Cautious credit environment leading to tighter underwriting and lower log-in to sanction ratios
p. 8
“Today, that is less than 50%. It had even bottomed down to the level of 40% to 43%.”
Rupinder Singh, page 8 of the filed PDF · View the filing
Uncertainty around timeline for resuming co-lending under CLM1 model
p. 8
“For CLM1, I think we have to wait some more time. If you ask me exact timeline, it will be difficult at this juncture.”
Rupinder Singh, page 8 of the filed PDF · View the filing
Rising competition across all operating markets
p. 13
“Every market is being plundered by all kinds of competition, not now, but from the beginning, basically.”
Rupinder Singh, page 13 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.