Sammaan Capital Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sammaan Capital Ltd filed with BSE on 23 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
Sammaan Capital reported its first earnings call since IHC's acquisition of a strategic stake, with the transaction closed and share allotment completed on 31st March 2026. The company reported an opening AUM of roughly INR53,160 crores with zero gross and net NPA, and all three domestic rating agencies (CRISIL, CARE, ICRA) upgraded the company within the first 50 days of the IHC investment. Management laid out multi-year targets for AUM growth, net interest margin expansion, cost-to-income reduction, and return on assets and equity through fiscal 2030.
Numbers mentioned
Opening AUM: INR53,160 crores
p. 7
“We start with an opening AUM, which has a 0 gross and a 0 net NPA.”
Gagan Banga, page 7 of the filed PDF · View the filing
IHC equity ownership: 28.5%
p. 6
“IHC's current equity ownership stands at 28.5%.”
Gagan Banga, page 6 of the filed PDF · View the filing
Total proceeds received from IHC: INR5,652 crores or $592 million
p. 6
“All in all, we've already received approximately INR5,652 crores or $592 million on issuance of equity shares and on the 25% upfront payment on warrants.”
Gagan Banga, page 6 of the filed PDF · View the filing
Balance receivable on warrant conversion: INR3,200 crores or $335 million (next 18 months)
p. 6
“The balance approximately INR3,200 crores or $335 million has to be received within the next 18 months on conversion of the warrants.”
Gagan Banga, page 6 of the filed PDF · View the filing
Annualized credit cost on disbursements: 1.9%
p. 7
“With all the provisions taken earlier as well as in quarter 4 fiscal '26, the annualized credit cost for this INR3.6 lakh crores disbursement adjusted for the rundown every year comes at 1.9% annualized credit cost which is fairly healthy and competitive.”
Gagan Banga, page 7 of the filed PDF · View the filing
Capital adequacy: 20.2%
p. 11
“We are starting with a capital adequacy of 20.2%.”
Gagan Banga, page 11 of the filed PDF · View the filing
Book value per share: about INR160 per share
p. 11
“the book value per share, which is currently at about INR160 per share would increase to and go past INR200 per share.”
Gagan Banga, page 11 of the filed PDF · View the filing
Domestic bond appreciation: about 100 basis points
p. 9
“our bonds have already domestically appreciated by about 100 basis points.”
Gagan Banga, page 9 of the filed PDF · View the filing
International bond appreciation: almost 250 basis points (since September 2025)
p. 9
“our international bonds have appreciated almost 250 basis points.”
Gagan Banga, page 9 of the filed PDF · View the filing
Return on managed assets: 1.5%
p. 11
“we are introducing a new evaluation metric, return on managed assets, which are currently at 1.5%.”
Gagan Banga, page 11 of the filed PDF · View the filing
Return on asset: 1.6%
p. 8
“What is very important to note is that our current opening AUM will give us the financial flexibility via the ROA generates of approximately 1.6% to make all the investments which we need to do in tech, in the branch network and in enhancing the people network.”
Gagan Banga, page 8 of the filed PDF · View the filing
Recoveries expected from provided amounts: close to about INR7,000 crores
p. 19
“We would recover close to about INR7,000 crores from what we have provided.”
Gagan Banga, page 19 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.
Disbursements — approximately INR30,000 crores · this year
stated firmly by Gagan Banga
p. 10
“We intend to, through this year, disburse approximately INR30,000 crores.”
Gagan Banga, page 10 of the filed PDF · View the filing
Profit after tax — INR1,400 crores · this year
stated firmly by Gagan Banga
p. 10
“We are targeting a profit after tax this year of INR1,400 crores.”
Gagan Banga, page 10 of the filed PDF · View the filing
Dividend payout ratio — at least 25%, targeting 40%
stated as an aspiration by Gagan Banga
p. 10
“We would have a steady dividend payout policy of at least 25%. We would be targeting 40%, which has been projected here.”
Gagan Banga, page 10 of the filed PDF · View the filing
Net interest margin — ballpark of 8% · next 3 years
stated as an aspiration by Gagan Banga
p. 10
“as cost of funds declines by 150 basis points over the next 3 years, we would see just by that 150 basis points addition on our net interest margin, plus with the leverage, etc., the net interest margin should be touching a ballpark of 8%.”
Gagan Banga, page 10 of the filed PDF · View the filing
Cost-to-income ratio — 26% · by fiscal '30
stated as an aspiration by Gagan Banga
p. 10
“The fraud detection rate as miniscule as it may be, will also meaningfully increase. And the costincome ratio, as I mentioned, would be in the ballpark of 26% by fiscal '30 through the various operational efficiencies that we are targeting to achieve.”
Gagan Banga, page 10 of the filed PDF · View the filing
Workforce — 20,000 people · financial year target
stated as an aspiration by Gagan Banga
p. 10
“The financial year target is to expand our workforce to 20,000 people, have a branch network of 1,600 branches and have over 15 products.”
Gagan Banga, page 10 of the filed PDF · View the filing
Employee count — 8,000 people · by the end of this year
stated firmly by Gagan Banga
p. 11
“By the end of this year itself, we will be 8,000 people and the borrower base would grow about tenfold.”
Gagan Banga, page 11 of the filed PDF · View the filing
Return on managed assets — about 3%
stated as an aspiration by Gagan Banga
p. 11
“As the scale improves, we will get to about 3%.”
Gagan Banga, page 11 of the filed PDF · View the filing
Portfolio mix - secured lending — 60% secured, 20% unsecured/semi-secured, 80% retail
stated firmly by Gagan Banga
p. 11
“On the portfolio mix, we would target 60% secured lending, 20% unsecured or semi-secured lending.”
Gagan Banga, page 11 of the filed PDF · View the filing
Gearing cap — 3.5x to 4x
stated firmly by Gagan Banga
p. 11
“we would cap our gearing at about 3.5x to 4x.”
Gagan Banga, page 11 of the filed PDF · View the filing
ROA — 1.8% in FY27, 3.7% in FY28, 4.4% in FY29 and FY30 · FY27-FY30
stated as an aspiration by Gagan Banga
p. 16
“So the ROA, just so that everyone is clear, fiscal year '27, we expect that to improve to 1.8%, fiscal '28 to 3.7%, fiscal '29 to 4.4% and in fiscal '30 also be at 4.4%.”
Gagan Banga, page 16 of the filed PDF · View the filing
ROE — high-teens, 18%
stated as an aspiration by Gagan Banga
p. 17
“India will go through cycles. And if we continue to do steady compounding, we will in year here or there, get to 18% ROE.”
Gagan Banga, page 17 of the filed PDF · View the filing
Cost of funds reduction from AA to AAA — 270 bps · FY27
stated conditionally by Gagan Banga
p. 19
“We stand by the 270 bps number. That on a marginal basis would require us to go from AA to AAA.”
Gagan Banga, page 19 of the filed PDF · View the filing
Cost of funds reduction domestic borrowing — 60 to 70 basis points more
stated conditionally by Gagan Banga
p. 9
“the number to really track is the domestic borrowing program, which has improved by 100 basis points and should be moving in the direction of improving by at least 60 to 70 basis points more, especially now that all 3 rating agencies rate us at AA+.”
Gagan Banga, page 9 of the filed PDF · View the filing
Marginal cost of funds decline — approximately 160 basis points
stated conditionally by Gagan Banga
p. 12
“it is but logical that as an outcome of these upgrades, our marginal cost of funds would decline by approximately 160 basis points.”
Gagan Banga, page 12 of the filed PDF · View the filing
Disbursals by product mix — 80% existing products in FY27-28, 50/50 mortgage vs other products by FY30 · FY27 to FY30
stated firmly by Gagan Banga
p. 15
“The next couple of years, which is fiscal '27, '28, 80% of the disbursals would be dedicated to existing products, which would continue to come down as the other products increase.”
Gagan Banga, page 15 of the filed PDF · View the filing
Q1 disbursals growth — 50% to 60% more than Q4 · Q1
stated firmly by Gagan Banga
p. 16
“we would disburse in the first quarter at least 50% to 60% more than what we disbursed in quarter 4.”
Gagan Banga, page 16 of the filed PDF · View the filing
Credit rating trajectory — AAA
stated as an aspiration by Gagan Banga
p. 16
“The AA+ is just the first stop. AAA is the destination.”
Gagan Banga, page 16 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 is engaged with international rating agencies and expects a positive trajectory to follow the domestic upgrades, while cost of funds decline is gradual because of maturity structure of existing borrowings.
Answered by Gagan Banga
Asked by Varun Ahuja: Any progress with offshore rating agencies, and is the slow cost of funds decline due to non-callable fixed maturity instruments?
p. 12
“We are, Varun, engaged with international credit rating agencies. Both Sammaan's management team, as well as IHC’s management team has had multiple meetings.”
Gagan Banga, page 12 of the filed PDF · View the filing
Management said the team has prior experience across secured and unsecured products, and growth would rely on investment in people, technology, and cross-sell, with mortgages leading growth in the near term.
Answered by Gagan Banga
Asked by Renish: How will Sammaan build non-mortgage portfolios at scale given historical mortgage focus, and what is the cost math for these investments?
p. 13
“The management team here has managed and we personally have managed secured and unsecured loans, personal loans, commercial vehicle loans, loans against securities, all done at scale running into tens of thousands of crores.”
Gagan Banga, page 13 of the filed PDF · View the filing
80% of disbursals will be existing products in FY27-28, moving to a 50/50 split between mortgage and other products by FY30.
Answered by Gagan Banga
Asked by Bhanu Chauhan: What proportion of AUM growth will come from existing segments versus new product lines through FY30?
p. 15
“The next couple of years, which is fiscal '27, '28, 80% of the disbursals would be dedicated to existing products, which would continue to come down as the other products increase. By fiscal '30, we would probably be having 50% of the disbursals through mortgage-backed products and 50% through other products.”
Gagan Banga, page 15 of the filed PDF · View the filing
Management confirmed an error in the FY30 ROA figure (corrected to 4.4%) and expressed confidence based on productivity improvements, market opportunity, and cost of funds trajectory.
Answered by Gagan Banga
Asked by Avinash Singh: Given the competitive landscape of many AAA-rated NBFCs, how confident is management in its profitability projections, and is there an error in the FY30 ROA figure?
p. 16
“Yes, there is an error, and that number is 4.4% in financial year '30. We will update the presentation and resend it to you or also update that on the stock exchanges.”
Gagan Banga, page 16 of the filed PDF · View the filing
Management said upfront investment is limited mainly to branch setup and workforce expansion rather than large capital outlays, with technology investments like CRM already made.
Answered by Gagan Banga
Asked by Naintara Ghosh: How much investment is required to set up the new product suite?
p. 17
“A branch of gold loan takes about INR20 lakh of to set up. It takes about 3 years before it becomes fully productive and profitable.”
Gagan Banga, page 17 of the filed PDF · View the filing
Management explained that equity infusion has no cost impact on P&L, and the spread from sold-down assets on the managed book adds directly to NIM.
Answered by Ramnath Shenoy
Asked by Vineet Sharma: What is driving the significant NIM expansion from 3.5% to 5.8% given cost of funds is not declining as much?
p. 18
“See, what also adds to the NIM is our sold on book. So the spread that we make on the sold on book directly adds to the NIM.”
Ramnath Shenoy, page 18 of the filed PDF · View the filing
Management reaffirmed the 270 bps figure as the total improvement expected across the full AA to AAA journey, not a single-year event.
Answered by Gagan Banga
Asked by Arun Antony: Is the previously guided 270 bps cost of funds decline for FY27 still achievable given West Asia conflict and hardening yields?
p. 19
“We stand by the 270 bps number. That on a marginal basis would require us to go from AA to AAA.”
Gagan Banga, page 19 of the filed PDF · View the filing
Management said projections include expected recoveries of about INR7,000 crores and described the provisioning as a technical step rather than a write-off.
Answered by Gagan Banga
Asked by AS Raju: What is the total outstanding write-off, and do projections include recovery from write-offs?
p. 19
“So the projections, Mr. Raju, do include recoveries. We would recover close to about INR7,000 crores from what we have provided.”
Gagan Banga, page 19 of the filed PDF · View the filing
Risks flagged
Cybersecurity and fraud risk in operations
p. 10
“Cybersecurity is a continuous risk. We have to become digitally resilient.”
Gagan Banga, page 10 of the filed PDF · View the filing
Cost of funds cannot be renegotiated on existing bonds, limiting speed of decline
p. 12
“The bonds can't be negotiated, and they would also have a similar 3 to 4-year maturity.”
Gagan Banga, page 12 of the filed PDF · View the filing
Companies that fail to grow risk entering a negative consolidation phase
p. 19
“Companies don't go anywhere by just hanging in there, either they have to grow or the phase of consolidation would lead to something which is not very positive.”
Gagan Banga, page 19 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.