Note: This is a preliminary transcript and may contain inaccuracies. It will be updated with a final, fully-reviewed version soon.
SRG HOUSING FINANCE LTD (NSE: SRGHFL) Q4 2026 Earnings Call dated May. 12, 2026
Corporate Participants:
Pruangi Jain — Investor Relations
Vinod Kumar Jain — Managing Director
Archish Jain — Chief Executive Officer
Rohit Sharora — Unidentified Participant
Analysts:
Unidentified Participant
Ankur Kumar — Analyst
Presentation:
Operator
Ladies and gentlemen, Good day and welcome to the Q4FY26 earnings conference call of SRG Housing Finances Ltd. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star and then zero on your touchtone phone. Please note that this conference is being recorded at this time. I would like to hand the conference over to Ms.
Parvangi Jain from Valorum Advisors. Thank you and over to you Ma’. Am.
Pruangi Jain — Investor Relations
Good afternoon everyone and a warm welcome to you all. My name is Pruangi Jain from Ballaram Advisors. We represent the investor relations of Sirg Housing Finance Ltd. On behalf of the company and Valerim Advisor,
Unidentified Participant
I would like
Pruangi Jain — Investor Relations
To thank you all for participating in the company’s earnings conference call for the fourth quarter and full year ended of the financial year 2026. Before we begin, let me mention a short cautionary statement. Some of the statements made in today’s earnings call may be forward looking in nature. Such forward looking statements are subject to risk and uncertainty which could cause actual results to differ from those anticipated. Such statements are based on management’s belief as well as assumptions made by and information currently available to the management.
Audiences are cautioned not to place any undue reliance on these forward looking statements in making any investment decision. The purpose of today’s earnings call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Let me now introduce you to the management participating with us in today’s earnings call and hand it over to them for their opening remarks. We have with us Mr. Vinod Kumar Jain, Managing Director and Mr. Archish Jain, Chief Executive Officer.
Mr. Arches has been with the company for over 8 years since 2018 he has played a key role in in driving on ground business expansion across sales and operations. Appointed as CEO in 2023, he brings deep market understanding, execution, focus, leadership and hands on experience in scaling business operations across regions. Without any delay. I request Mr. Vinod Kumar Jain to start with his opening remarks. Thank you and over to you Sir
Vinod Kumar Jain — Managing Director
Jaiden Good afternoon Mayach Absurd earning calls Mayhar Quarter 4 of financial 26k performance per company SRG Housing Finance Housing Finance Company. Affordable housing. Underwritings Local market Understanding or Discipline Risk Management. Business Model for underwriting capability. Business Model Small ticket secured lending 94% loan book rural and semi urban market 79% graph self employees category. Profit after tax 32.5 crore strong underwriting models Local education or discipline Risk management Technology or banking Channel integrations Company operational or collection infrastructure 97% banking channel collection efficiency of portfolio monitoring financial year 26.
Long term credit rating. Improving Business fundamentals Stable assets Quality or strong capitalization.
Archish Jain — Chief Executive Officer
Good afternoon everyone and thank you for joining us today. It is a privilege for me to address the investor community for the first time as the CEO of SRG Housing Finance Ltd. I sincerely appreciate your continued trust, support and confidence in our institution. Over the years our company has built a strong foundation driven by prudent underwriting, customer centric growth, disciplined risk management and a deep commitment to affordable and inclusive housing finance. As we move into the next phase of growth, our focus remains clear strengthening asset quality, improving operational efficiency, expanding responsibly across markets and creating long term value for all stakeholders.
As I take on this responsibility, my commitment is to lead the organization with transparency, accountability and a long term perspective. We will continue balancing growth with governance while remaining focused on profitability, portfolio quality and customer trust. I would also like to thank our employees, customers, lending partners, regulators and shareholders for being an integral part of our journey. With that, let me now take you through the company’s performance and key business updates for the quarter and the year.
For the fourth quarter under review, net interest income stood at around 28 crores registering a healthy growth of 33% year on year while NIMS remained healthy at 11.28%. Profit after tax for the quarter came in at 9 crores reflecting a strong growth of 50% year on year. For the financial year 2026, the company reported net interest income of 98.26 crores reflecting a growth of 31% year on year supported by steady AUM expansion and improving funding efficiencies. NIMS for the year stood at 10.91% profit after tax.
For the period stood at around 32.49 crores marking a healthy growth of 33% year on year. As of financial year 26, our asset under management stands at 1042 crores reflecting a strong growth of 37% year on year. Disbursement for the year grew by 45% year on year to 443.54 crores reflecting healthy demand momentum across our operating geography. On the operations front, we continue to witness improvement in productivity metrics across the organization. AUM per branch increased to 10.86 crores in quarter four financial year 26 from 8.44 crores in quarter four financial year 25 while AUM per employee improved to 1.54 crores from 0.88 crores over the same period, reflecting improving operational efficiency and strong scale led productivity gains.
We also witnessed a 41% year on year increase in average ticket size to 15.44 lakh during the quarter, primarily driven by expansion into newer markets and and higher construction cost. Importantly, despite the increase in ticket sizes, our underwriting discipline remains strong with average LTV maintained at a comfortable level of around 50.7%. Asset quality continued to remain stable and healthy. GNPA improved to 1.77% compared to 1.84% last year while NNPA stood at 0.65% reflecting prudent underwriting standards and strong collection efficiency.
Our capital position also remained comfortable with capital adequacy at 38.62% providing sufficient headroom to support future growth. Cost of borrowing improved to 10.88% in quarter four financial year 26 from 11.07% in quarter for financial year 25 reflecting continued strengthening of a liability profile. Operational efficiency also improved steadily with the cost to income ratio declining to 63.14% from 67.49% over the same period supported by improving scale efficiencies and operating leverage.
Overall, we believe SRG Housing Finance remains well positioned to continue delivering sustainable growth supported by deep rural penetration, disciplined underwriting, strong collection infrastructure and a scalable operation model focused on underserved customer segments. With that we would now be happy to take your questions. Thank you.
Questions and Answers:
Operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press STAR and then one on their Touchstone phone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles again. To register for a question please press Star and then one. Now. Your first question comes from the line of Ronak Chera from Avriga Capital.
Please go ahead.
Archish Jain
Hi sir, Congratulations on the results. Sir, I have two questions. One is if you could share qualitatively on your new branches, how is the scale up happening in terms of AUM and the leads which we are generating? How do you see that panning out over the next 12 months in terms of scale up of the new branches especially in the geographies where we are launched in the last couple of years and the second is on your disbursement growth. Earlier you actually headed about 500 crores of disbursement growth just Wanted to check is that
Ankur Kumar
Still holds and how does one should think of the Asian growth for the next 12 months.
Archish Jain
Right sir, thank you for your question. So one is that on the expansion program and how we are planning to do it. Currently in last one and a half years we have expanded in the states of Maharashtra, Andhra Pradesh and Karnataka. And we are keen on increasing our branches in those particular locations. But we are also planning our expansion in the states of Tamil Nadu and Andhra, Prateek and Telanga with that. But it will take time for us to do our research. And by the end of this year we will be present in the states of Tamil Nadu and Telangana.
But we are planning for approximately 10 to 15 new branches in these particular states. We are not going to expand in our existing states such as Gujarat, Maharashtra, Gujarat and mp. But we are focusing on the southern region. With the question on the disbursement number we are targeting of approximately 600 crores of disbursement for this year. So this is our target.
Ankur Kumar
And that would lead to an AUM growth of around yield reach AM of 1500. By then
Archish Jain
It will be around 1300 to 1400 crores. But definitely of course we are very optimistic on the conditions right now. So we will definitely target for 1500 crores of achievement. But the 1400 crores of AUM is something which we are very optimistic on.
Vinod Kumar Jain
Thank you. And this last thing is on your cost of borrowing. Now that we’ve got a rating upgrade. How should one think of your cost of borrowing as a trajectory over next two years?
Archish Jain
Sir, definitely it is going to come down. But the thing is we are in expansion mode right now. We are expanding in newer states. We have now we are focusing on a better top management team as well. We are doing a lot of recruitment as well and expansion also. So I can’t guarantee you on the numbers. But definitely it is going to come down. Let’s say for next one to two years it will come down from 63 to 61%.
Ankur Kumar
Okay. Thank you so much. I’ll come back in the queue.
Operator
Thank you. The next question comes from the line of Ankur Kumar from Alpha Capital. Please go ahead.
Ankur Kumar
Hello sir. Congrats for a good set of numbers. Sir, I wanted to understand given our high geographical expansion plan and AUM target what kind of ROE levels are we looking for in coming one or two years?
Archish Jain
But currently what we are managing right now we are trying to manage the same ROI level. But the thing is with the market of housing, how it is going forward, I think it will be around 18%.
Ankur Kumar
Sorry. But currently are we making it like 12, 13%. Right?
Archish Jain
You are asking, right. So. So it is going to be same parallelly but we are definitely optimistic on that. So we’ll go around 12 to 13%.
Ankur Kumar
Got it. And sir, given this war situation and monsoon also less this year. So are we seeing any concerns on book quality or. Everything is going fine on that front.
Archish Jain
No sir, that is not impacting us a lot because we have a diversified book profile and we have very different, different profile credit profiles also customer profiles also. So that is not directly impacting us. So we don’t see any challenge on that.
Ankur Kumar
Sure, sir. Thank you.
Operator
Thank you. Before we take the next question, a reminder to all the participants. You may press star and then one to ask a question. The next question comes from the line of Rohit Sharora, an individual investor. Please go ahead.
Rohit Sharora
Hello. Am I audible?
Operator
Yes. Yes sir, you audible.
Rohit Sharora
So any particular reason for high GNP in Rajasthan region?
Archish Jain
Sir, nothing in particular. If I say so that there’s no reason to it maybe I don’t see any challenge in terms of Rajasthan state. But the portfolio is quite big in Rajasthan when you compare it to other states which we operate in. So that’s the reason it might show that there is an increase of gnp. Otherwise there is no concerning factor which is impacting the portfolio.
Rohit Sharora
As our average ticket size increasing. So these customers can get. These customers can get low net lower, lower interest rates than ours. So is the. Is high competition affecting us?
Archish Jain
Not really sir. Because the customer profile remains the same. The source of income remains the same. Although there’s a change in the cost of construction also and then expiration of how it should look like that is also changing in the sector of rural and semi urban. So with this, that sentiment, the reason of why we have an increase in the ticket size.
Operator
Okay sir, thank you. Thank you. The next question comes from Danish Shah, an individual investor. Please go ahead.
Archish Jain
Good afternoon sir. So I have couple of questions to ask. So first is I have observed Rajasthan and Gujarat together contribute nearly 77% of
Operator
The UN. So how does the management is planning to diversify the portfolio geographically over time?
Archish Jain
Yes sir. So basically because we started off with Rajasthan and then Gujarat then is a. Of course there’s a dominance in both the states. But if I see the fastest growing state has been a south in last one and a half years, I think they have been our fastest growth which I have seen in our journey of srg. I think they have grown faster than Gujarat and Rajasthan itself. So now I’M very much optimistic in the states of Maharashtra, Tamil Nadu, Andhra Pradesh, Karnataka. And that’s the reason we have an expansion plan in these particular states only.
And with that I think in next two to three years. Of course right now we see the dominance in Rajasthan and Gujarat. But eventually it will have by and large the same percentage of share in the A1
Operator
Also. Sir, wanted to understand from you like what will be like some key challenges in scaling deeper into geographies while maintaining the company asset quality and operational efficiency
Archish Jain
Only the key challenges is on the customer front. I don’t see any key challenges in terms of macro wise. But the thing is how we are improving our services, how we are giving the right need, what is required from the customer part in terms of the amount, in terms of how faster we are giving that and better customer service. So that’s the key challenge for each and every company. So for that we are having a lot of change in our platforms as well and into our ERP system also. And we are transforming completely digital also.
So I think these are the key things which we are focusing on for the upcoming year.
Operator
Okay, one last question. So as another participant has said our average ticket size has increased significantly. So I wanted to understand how much of this increase was
Archish Jain
Driven by high property prices versus a strategic
Vinod Kumar Jain
Shift in the customer profile.
Archish Jain
Sir, I think it is more of the purchase has increased, the construction cost has increased and the customer profile remains the same for us. And I don’t see any difference in that. We are getting very new or different profiles in comparison to the urban profiles. But the profile remains the same only just that the definitely the property prices are increased also there’s a lot of development which government is doing into semi urban and rural areas. Lot of industries are also coming up into different different areas.
So that is also leading to the price raise also in terms of property. But now everybody aspire to have their home in a manner which was not been taught before. They want a proper house, they want a small amenities also which is also that is an expiration which is now is seen in the semi urban and rural areas also. So in that case the ticket size has improved drastically.
Vinod Kumar Jain
Thank you sir. Thank
Archish Jain
You so much.
Operator
Thank you. The next question comes from the line of Parak from PH Financials. Please go ahead.
Archish Jain
Hello.
Operator
Yes
Vinod Kumar Jain
Sir.
Archish Jain
Sir, first of all congratulations for a very amazing set of numbers. You guys have kept your word and given outstanding results as compared to other housing finance companies. What they had guided and what they have achieved. So sir, I have a couple of questions. One question Would be on the guidance part of the em in next two to three years. That I would like to understand from you and from for that the capitalization are we well capitalized to achieve that kind of an AUM growth? Number one would be that.
And number two I would also like to understand the credit collection mechanism. Because in one of your presentation on page number 20 we see that the gross asset is close to 1042 crores. But stage one is close to 93% and which reduces to 5% and subsequently at stage three reduces to 1.77%. So why the stage one collection is at such a high level as in the delinquency is at a high level. And I want to understand the collection mechanism. If you could help me with that. S.
Vinod Kumar Jain
Banking channels. To investors challenges may he business. Support say. In 12 times leverage Karakta banks. For second quarter.
Archish Jain
Presentation. Stage one close to 93%. Stage one I think I understand between zero to 30 days. Which goes up to say 93% and then subsequently and 14%. 14 to 15% bounce rate. But.
Vinod Kumar Jain
Customer. 97%.
Archish Jain
For that matter. Fair enough. Thank you. Thank you so much sir.
Vinod Kumar Jain
Okay,
Operator
Thank you. Before we take the next question, a reminder to all the participants. You may press star and then one to ask a question. Your next question comes from the line of Tushar, an individual investor. Please go ahead.
Archish Jain
Hello sir. Am I audible? My question is more on the macro front. I just wanted to know sir, how is this ongoing macro level uncertainty especially the ongoing West Asia crisis and other things are impacting us. Considering our 75% loan book is contributed by self employed borrower segment. So how is this uncertainty impacting us? How is the repayment
Operator
Trends
Archish Jain
Remained
Operator
Within this segment? That that’s the first question.
Archish Jain
So all these macro things which are happening around the world and which might be impacting India in a manner that large business houses might get affected. Those who are directly associated with the government policies that might affect. But we are into the segment which is very small, right? We are into the segment which has and which are majorly self employed. And with the very basic self employed profiles like Kirana stores. Somebody is into contractor, somebody who is into dairy business. Somebody who is into spare parts business.
So lot of macro impact is not impacting their profiles in their business thing, right? Because they have a very small scale operation level. So in terms of that I don’t see any problem that it is going to happen in this upcoming event, in this year and any other upcoming year. And with the repayment also I don’t see any trouble on that. Along with that we are very conservative on LTVs also and foyers also. So that is helping us also to maintain the risk profile.
Rohit Sharora
Understood. And so just continuing with that, as you rightly mentioned, we are majorly focused on
Archish Jain
Basically underserved loan to paid customers. So how would be our underwriting approach, you know, different from the large affordable housing finance players and you know these big guys out there. There’s a difference. So one is that because we have majorly self employed profiles. So there’s a lot of underwriting assessment which has been made in our organization from the last 20, 25 years we have been serving this industry. We have been focusing only on rural and semi urban. So we have established our expertise in the assessment process.
So we have created a lot of different, different profile templates. We have our own understanding, own database to understand the repayment tracks of different different sectors where we are focusing on why we are different. So we, we don’t believe on assessment. We of course when you have a less documentation, right. Because you are definitely targeting to those particular segment. So we have an understanding of assessment of for example if there is a customer who’s into Kirana business, right.
So we have made our own metrics and parameters to assess that particular profile. So our credit team goes there and stay with them to understand how the business is there, what are the cash flows, how much expenses they occur during the day, how much purchase and how they purchase it from which vendor to wholesaler. So everything is done then and there only at the customer’s location because they don’t have a banking habit, they don’t have a gst, they don’t have income tax returns, they don’t have Udviyamadhaar and all those things.
So for that matter the assessment of the profile and on ground is very important to understand what is the need of the customer, what is the end use of the fund. So for that matter the way we have trained our team is helping us to assess these profiles.
Rohit Sharora
Understood. And sir also this last thing the
Operator
Collections are happening are 100% digital or how much would be the split of collections in terms of cash collection and digital collection? Sir,
Archish Jain
So I think cash collection is not more than 4 to 5% because it is all online now. People now have started the habit of UPI so I don’t think so. And it is quite prevalent in the semi urban and rural areas also. So I so there’s the cash collection is not more than 4 to 5%. Okay sir, thank you. Thank you. On my side
Operator
Thank you. The next question comes from the line of Brendan, an individual investor. Please go ahead.
Archish Jain
Hello. Hello. Am I audible? Yeah, you audible? Yeah. Thanks for the opportunity. I just have a few questions. So on the first question for BIMS
Ankur Kumar
Have remained stable at around 11% despite rapid growth. So
Archish Jain
What are the sustainable levels that we expect? Somewhere around
Unidentified Participant
This
Archish Jain
11% only. Okay, 11% only. And the question is regarding the average LTV. So it’s increased from 46.6% to 50.7 on a via Y and Y.
Vinod Kumar Jain
So is this a strategy that the management is using or what is the like what is the risk profile we could use? Basically
Archish Jain
It is not the strategy and there is no risk profile to it. It is more about the nature of the product that we are into. Right. And to be in the market and to understand that it is the nature of the housing finance product is actually driving us from a 46, 47, 80B to 50 point something something. So that is there. There’s no other strategy behind it.
Operator
Okay,
Vinod Kumar Jain
No problem. Anyway, thank you, thank you for the opportunity.
Operator
Thank you. Participants, you may press star and then one to ask a question. The next question comes from the line of Jain, an individual investor. Please go ahead.
Archish Jain
Hello sir, good afternoon. I just wanted to understand on your SRG sir program. So you all have highlighted a lot on the technology, the initiatives that you all are taking.
Rohit Sharora
I just wanted to understand the business benefits you all have achieved for this and what was the cost for developing this app and maintaining it as well.
Archish Jain
So basically we have our own ERP system and continuously we have been developing on that particular platform. Right now we have a dedicated IT team for that and we have introduced a lot of new changes in terms of AI into the calling and now it is still in the development. We are still, because it takes a time, because a lot of research is required in terms of how we are going to reduce the tide, how we are going to increase the operational efficiency and all those things. For that matter it is process and we are developing so there’s no cost is incurred yet.
But yes, definitely we have now increased our teams in IT and, and that’s how we are doing it.
Rohit Sharora
Okay. Another question I had was basically a bit more on long term views. I just wanted
Archish Jain
To know what AEM scale you all want to achieve in the, you know, in a more long term like let’s say three to five year period as well. And how do you position yourself in the market like with competitors like Actis etc which have around a 20,000 crore AU and currently so I just wanted to understand how you all are positioning yourself in your affordable housing finance segment. Basically if you could help me on that.
Vinod Kumar Jain
Tq branch. Of a target. Next 2nd generation b sad meh.
Archish Jain
Thank you. Thank you very much. That’s all from my side.
Vinod Kumar Jain
Okay,
Unidentified Participant
Thank you. Participants, you may press star and then one to ask a question. As there are no further questions, I would now like to hand the conference over to the management for closing comments.
Vinod Kumar Jain
Or subset mutual fund company or both Kamjagasa dekniko miltag joapka investor hair or who are NCDMA passage. Financials crisis. Such a ticket Saichka reasons India may plots land jogara joho mangi or construction cost to be mangy. Thank you,
Operator
Thank you on behalf of SRG Housing Finances limited that concludes this conference. Thank you everyone for joining us. And you may now disconnect your lines.