SMPL
Mumbai (Maharashtra) [India], November 18: SRG Housing Finance Ltd. (SRGHFL), a rapidly expanding affordable housing finance company, announced its Unaudited Financial Results for the Quarter and Half Year ended September 30, 2025, reporting robust growth across assets, disbursements, income and profitability, alongside continuous geographic expansion.
The company’s AUM surged to ₹866.64 crore in Q2 FY26, marking a 33.21% YoY rise compared to ₹650.56 crore in Q2 FY25 and an 8.96% QoQ increase over ₹795.39 crore in Q1 FY26.
SRG now operates with 93 branches across 6 states and 1 UT, and recently expanded into four additional southern markets, strengthening its footprint across India’s high-growth affordable lending corridor.
Strong Growth Across Q2 & HY1 Performance Indicators
SRG’s performance in Q2 FY26 highlights accelerated business activity and improved operational efficiency. Key growth metrics include:
* Loan Disbursements: ₹116.59 crore in Q2 FY26, up 85.18% YoY (vs ₹62.96 crore) and 45.74% QoQ (vs ₹80 crore).
* Total Income: ₹48.45 crore, rising 31.51% YoY from ₹36.84 crore.
* Net Interest Income (NII): ₹23.40 crore, up 31.91% YoY (vs ₹17.74 crore).
* NIM on Gross AUM: 2.82% vs 2.77% in Q2 FY25.
* Balance Sheet Size: ₹983.10 crore as of 30th September 2025.
For the HY1 period, SRG recorded sustained growth aided by healthy disbursements, prudent pricing and disciplined underwriting across housing loans and LAP products.
Profitability Strengthens with Clear YoY Improvement
SRG delivered steady profit expansion in Q2 FY26, driven by higher income, stable spreads and controlled operating costs.
* Profit Before Tax (PBT): ₹10.32 crore, 23.89% YoY growth (vs ₹8.33 crore).
* Profit After Tax (PAT): ₹8.25 crore, 25% YoY growth (vs ₹6.60 crore).
* Basic EPS: ₹5.26 vs ₹4.87 in Q2 FY25, an 8.01% YoY rise.
* Cost-to-Income Ratio: Improved to 64.22% from 64.80% in Q2 FY25.
* EBITDA: ₹29.93 crore, up from ₹24.86 crore in Q2 FY25.
The company continues to maintain strong credit discipline with Loan Spread of 9.01%, while asset quality remains resilient.
Stable Asset Quality & Strong Capital Adequacy
SRG reported Gross NPA at 1.88% and Net NPA at 0.64%, reflecting disciplined underwriting and robust borrower assessment. With a Loan-to-Value (LTV) of ~46%, the company has safeguarded its book against high credit risk.
The Capital Adequacy Ratio stood at 42.68%, comprising 42.26% Tier I capital and 0.41% Tier II, providing headroom for growth and expansion.
Business Mix Highlights
SRG’s loan book continues to be dominated by affordable housing loan customers, self-employed borrowers and rural markets.
In Q2 FY26:
* Housing Loans: ₹605.31 crore (69.85% of AUM)
* LAP Loans: ₹261.33 crore (30.15% of AUM)
* Rural Portfolio: ₹816.78 crore (94.25% of AUM)
* Self-employed Borrowers: 74.45% of AUM
Average ticket size, lending rate and LTV remained consistent across product lines, backed by steady demand in target customer segments.
Funding & Borrowing Position
Outstanding borrowings rose to ₹685.36 crore in Q2 FY26, compared to ₹541.99 crore in Q2 FY25. The company also raised ₹50 crore via Non-Convertible Debentures during the quarter on a private placement basis.
Borrowing mix remained diversified across banks, NHB, NCDs and financial institutions.
Management Commentary
Commenting on the company’s performance, Mr. Vinod K. Jain, Managing Director, said “We sustained our growth momentum in Q2 FY26, with AUM rising to ₹866.64 crore, up ~33% YoY, supported by strong disbursements of ₹116.59 crore, which grew ~85% YoY. Our LTV of ~46%, prudent underwriting and continued rural market focus have ensured portfolio strength. With improvement in cost efficiency and a Capital Adequacy Ratio of 42.68%, we remain confident of delivering quality growth while moving towards the ₹1,000-crore AUM mark.”
For detailed information, visit: https://www.srghousing.com/
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