SRG Housing Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript SRG Housing Finance Ltd filed with BSE on 16 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
SRG Housing Finance reported Q4 FY26 net interest income of around INR 28 crore, up 33% year-on-year, with net profit after tax of INR 9 crore, up 50% year-on-year. For the full financial year 2026, AUM grew 37% year-on-year to INR 1042 crore, disbursements grew 45% to INR 443.54 crore, and profit after tax rose 33% to around INR 32.49 crore. Management also discussed a credit rating upgrade to A- Stable by Acuité and outlined plans for geographic expansion into Tamil Nadu and Telangana.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Net interest income: around INR 28 crores (Q4 FY26)
p. 4
“For the 4th Quarter under review, net interest income stood at around INR 28 crores, registering a healthy growth of 33% year-on-year, while NIM remains healthy at 11.28%.”
Archis Jain, page 4 of the filed PDF · View the filing
Profit after tax: INR 9 crores (Q4 FY26)
p. 4
“Profit after tax for the quarter came in at INR 9 crores, reflecting a strong growth of 50% year-on-year.”
Archis Jain, page 4 of the filed PDF · View the filing
Net interest income: INR 98.26 crores (FY26)
p. 4
“For the financial year 2026, the company reported net interest income of INR 98.26 crores, reflecting a growth of 31% year-on-year.”
Archis Jain, page 4 of the filed PDF · View the filing
NIM: 10.91% (FY26)
p. 4
“Supported by steady AUM expansion and improving funding efficiencies, NIMs for the year stood at 10.91%.”
Archis Jain, page 4 of the filed PDF · View the filing
Profit after tax: around INR 32.49 crores (FY26)
p. 4
“The profit after tax for the period stood at around INR 32.49 crores marking a healthy growth of 33% year-on-year.”
Archis Jain, page 4 of the filed PDF · View the filing
Assets under management: INR 1042 crores (FY26)
p. 4
“As of Financial Year 2026, our assets under management stand at INR 1042 crores, reflecting a strong growth of 37% year-on-year.”
Archis Jain, page 4 of the filed PDF · View the filing
Disbursements: INR 443.54 crores (FY26)
p. 4
“Disbursements for the year grew by 45% year-on-year to INR 443.54 crores reflecting healthy demand momentum across our operating geographies.”
Archis Jain, page 4 of the filed PDF · View the filing
AUM per branch: INR 10.86 crores (Q4 FY26)
p. 4
“AUM per branch increased to INR 10.86 crores in Quarter 4 Financial Year ‘26 from INR 8.44 crores in Quarter 4 Financial Year ‘25”
Archis Jain, page 4 of the filed PDF · View the filing
Average ticket size: INR 15.44 lakh (Q4 FY26)
p. 5
“We also witnessed a 41% year-on-year increase in average ticket size to INR 15.44 lakh during the quarter primarily driven by expansion into newer markets and higher construction costs.”
Archis Jain, page 5 of the filed PDF · View the filing
Average LTV: around 50.7% (FY26)
p. 5
“Importantly, despite the increase in ticket sizes our underwriting discipline remained strong with average LTV maintained at a comfortable level of around 50.7%.”
Archis Jain, page 5 of the filed PDF · View the filing
GNPA: 1.77% (FY26)
p. 5
“GNPA improved to 1.77% compared to 1.84% last year.”
Archis Jain, page 5 of the filed PDF · View the filing
NNPA: 0.65% (FY26)
p. 5
“While NNPA stood at 0.65% reflecting prudent underwriting standards and strong correction efficiency.”
Archis Jain, page 5 of the filed PDF · View the filing
Capital adequacy: 38.62% (FY26)
p. 5
“Our capital position also remained comfortable with capital adequacy at 38.62% providing sufficient headroom to support future growth.”
Archis Jain, page 5 of the filed PDF · View the filing
Cost of borrowing: 10.88% (Q4 FY26)
p. 5
“Cost of borrowing improved to 10.88% in Quarter 4 Financial Year ‘26 from 11.07% in Quarter 4 Financial Year ‘25 reflecting continued strengthening of our liability profile”
Archis Jain, page 5 of the filed PDF · View the filing
Cost to income ratio: 63.14% (Q4 FY26)
p. 5
“operational efficiency also improved steadily with a cost to income ratio declining to 63.14% from 67.49% over the same period supported by improving sale efficiency and operating leverage.”
Archis Jain, page 5 of the filed PDF · View the filing
AUM growth since FY14: INR 26 crore to INR 1042 crore (FY14-FY26)
p. 3
“Our AUM was INR 26 crore in FY’14, which has increased to INR 1042 crore in FY’26.”
Vinod Kumar Jain, page 3 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 INR 600 crores · FY27
stated firmly by Archis Jain
p. 6
“With the discussion on the disbursement number, we are targeting of approximately INR 600 crores of disbursement for this year.”
Archis Jain, page 6 of the filed PDF · View the filing
AUM — INR 1300 crores to INR 1400 crores · FY27
stated as an aspiration by Archis Jain
p. 6
“It will be around INR 1300 crores to INR 1400 crores. But definitely, of course, we are very optimistic on the conditions right now.”
Archis Jain, page 6 of the filed PDF · View the filing
AUM — INR 1500 crores · FY27
stated as an aspiration by Archis Jain
p. 6
“So, we will definitely target for INR 1500 crores of achievement.”
Archis Jain, page 6 of the filed PDF · View the filing
Cost of borrowing — from 10.88% to around 10.70% · next one to two years
stated conditionally
p. 6
“The correct cost of borrowing for Q4 FY26 is 10.88%. Going forward, over the next one to two years, the expectation is that it may decline from 10.88% to around 10.70%.”
From the transcript, page 6 of the filed PDF · View the filing
Return on Equity — 18% · next one or two years
stated as an aspiration by Archis Jain
p. 6
“But the thing is, with the market of housing, how it is going forward, I think it will be around 18%.”
Archis Jain, page 6 of the filed PDF · View the filing
Branch expansion — 10 to 15 new branches in Tamil Nadu and Telangana · by end of this year
stated firmly by Archis Jain
p. 5
“But we are planning for approximately 10 to 15 new branches in these particular states.”
Archis Jain, page 5 of the filed PDF · View the filing
Geographic entry — presence in Tamil Nadu and Telangana · by end of this year
stated firmly by Archis Jain
p. 5
“And by the end of this year, we will be present in the states of Tamil Nadu and Telangana.”
Archis Jain, page 5 of the filed PDF · View the filing
Equity raise — Q4 of this year or Q1/Q2 of following year
stated conditionally by Vinod Kumar Jain
p. 9
“In my view, if this year progresses well and things remain on track, we may consider raising equity in the fourth quarter.”
Vinod Kumar Jain, page 9 of the filed PDF · View the filing
AUM — around INR 2000 crores · next two years
stated as an aspiration by Vinod Kumar Jain
p. 13
“So, in the next two years, we want to cross it around INR 2000 crores.”
Vinod Kumar Jain, page 13 of the filed PDF · View the filing
AUM — INR 2000 crores, INR 2500 crores · next two and a half to three years
stated as an aspiration by Vinod Kumar Jain
p. 13
“So, we should have a book of INR 2000 crores, INR 2500 crores within the next two and a half years, three years.”
Vinod Kumar Jain, page 13 of the filed PDF · View the filing
AUM — INR 10,000 crores to INR 20,000 crores · long term
stated as an aspiration by Vinod Kumar Jain
p. 13
“So, in the long term, the vision is that we want to make a growth book of INR 10,000 crores to INR 20,000 crores.”
Vinod Kumar Jain, page 13 of the filed PDF · View the filing
NIM — around 11%
stated as an aspiration by Archis Jain
p. 12
“Somewhere around 11% only.”
Archis Jain, 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 targets approximately INR 600 crore disbursements and expects AUM to reach around INR 1300-1400 crore, with an optimistic target of INR 1500 crore.
Answered by Archis Jain
Asked by Ronak Chheda: What is the disbursement growth guidance and expected AUM growth over the next 12 months?
p. 6
“So, this is our target.”
Archis Jain, page 6 of the filed PDF · View the filing
Management expects cost of borrowing to decline gradually over the next one to two years, though could not guarantee specific numbers.
Answered by Archis Jain
Asked by Ronak Chheda: How will cost of borrowing trend after the rating upgrade?
p. 6
“Sir, definitely it is going to come down. But the thing is, we are in an expansion mode right now.”
Archis Jain, page 6 of the filed PDF · View the filing
Management said ROE is expected to remain around similar levels, with optimism toward improvement.
Answered by Archis Jain
Asked by Ankur Kumar: What ROE levels are targeted given expansion plans?
p. 7
“So, it is going to be same parallelly. But we are definitely optimistic on that. So, we will go around 12% to 13%.”
Archis Jain, page 7 of the filed PDF · View the filing
Management said the diversified book and varied customer profiles insulate the company from these macro concerns.
Answered by Archis Jain
Asked by Ankur Kumar: Are geopolitical tensions and poor monsoon affecting book quality?
p. 7
“Because we have a diversified book profile and we have very different credit profiles also, customer profiles also. So that is not directly impacting us.”
Archis Jain, page 7 of the filed PDF · View the filing
Management attributed the higher GNPA figure in Rajasthan to the larger portfolio size there rather than any specific asset quality concern.
Answered by Archis Jain
Asked by Rohitash Arora: Why is GNPA higher in Rajasthan?
p. 7
“But the portfolio is quite big in Rajasthan when we compare it to other states which we operate in. So that is the reason it might show that there is an increase of GNPA.”
Archis Jain, page 7 of the filed PDF · View the filing
Management said southern states have grown faster recently and expects the AUM share to become more balanced over the next two to three years.
Answered by Archis Jain
Asked by Danish Shah: How will the company diversify its geographic concentration in Rajasthan and Gujarat?
p. 8
“So now I am very much optimistic in the states of Maharashtra, Tamil Nadu, Andhra Pradesh, Karnataka and Telangana.”
Archis Jain, page 8 of the filed PDF · View the filing
Management explained that around 14-15% of cheques bounce initially but around 97% is recovered within 30 days through call center follow-up, banking channel collections and structured staging.
Answered by Vinod Kumar Jain
Asked by Parag: Why is Stage-1 asset classification so high relative to overall NPA levels, and what is the collection mechanism?
p. 10
“However, the positive aspect is that around 97% of the amount is recovered within 30 days of the cheque bounce.”
Vinod Kumar Jain, page 10 of the filed PDF · View the filing
Management said the small-scale, self-employed customer base is largely insulated from such macro disruptions.
Answered by Archis Jain
Asked by Tushar: How is macro uncertainty, including the West Asia crisis, affecting the self-employed borrower segment?
p. 11
“So, lot of macro impact is not impacting their profiles and their business thing, right? Because they have a very small-scale operation level.”
Archis Jain, page 11 of the filed PDF · View the filing
Management said cash collections are minimal as most payments now happen via UPI and digital channels.
Answered by Archis Jain
Asked by Tushar: What proportion of collections is cash versus digital?
p. 11
“So, I think the cash collection is not more than 4% to 5% because it is all online now.”
Archis Jain, page 11 of the filed PDF · View the filing
Management said the increase reflects the nature of the housing finance product rather than a deliberate risk strategy.
Answered by Archis Jain
Asked by Brendon: Why has average LTV increased from 46.6% to 50.7% year-on-year?
p. 12
“Basically, it is not a strategy and there is no risk profile to it. It is more about the nature of the product that we are into.”
Archis Jain, page 12 of the filed PDF · View the filing
Management said the platform is still under development, including AI-based calling initiatives, with no cost incurred yet.
Answered by Archis Jain
Asked by Jai Jain: What has been the cost and benefit of the SRG SRAJAN technology program?
p. 12
“For that matter, it is still in the process and we are developing. So, there is no cost incurred yet.”
Archis Jain, page 12 of the filed PDF · View the filing
Management outlined a target of INR 2000-2500 crore AUM within two to three years and a long-term vision of INR 10,000-20,000 crore.
Answered by Vinod Kumar Jain
Asked by Jai Jain: What is the long-term AUM target compared to competitors like Aptus?
p. 13
“We think that if our branch makes around INR 25 crores, then our target for the branch is around INR 110 crores.”
Vinod Kumar Jain, page 13 of the filed PDF · View the filing
Risks flagged
Customer service and operational challenges in scaling deeper into rural geographies
p. 8
“Sir, only the key challenges is on the customer front.”
Archis Jain, page 8 of the filed PDF · View the filing
Leverage constraints from banks limiting borrowing to 5x-6x despite NHB allowing up to 12x, potentially necessitating equity raise
p. 9
“However, in practice, banks generally do not allow leverage beyond 5x–6x. Therefore, once our leverage crosses the 5x–6x range, we will certainly look at raising additional equity.”
Vinod Kumar Jain, page 9 of the filed PDF · View the filing
Cheque bounce rate among customers requiring active follow-up for collections
p. 9
“Initially, our cheque bounce rate is around 14%–15%.”
Vinod Kumar Jain, page 9 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.