Q1 FY27 Financial Performance Summary

Profitability Metrics:

  • Profit after tax (PAT) grew by 19% YoY to ₹282 crore in Q1 FY27 from ₹237 crore in Q1 FY26
  • Return on assets (ROA) stood at 4.0% with 2 bps improvement
  • Return on equity (ROE) stood at 14.7% with 6 bps improvement

AUM and Growth Metrics:

  • Assets under management (AUM) grew by 18% YoY to ₹31,364 crore as of June 30, 2026 from ₹26,524 crore as of June 30, 2025
  • Total number of loan accounts stood at 3,40,000+ as of June 30, 2026
  • Disbursements reported at ₹2,036 crore (on cheque realisation basis, transitioned from Q1 FY27)
  • Disbursement on cheque handover basis was ₹23,590 crore, showing 19% YoY growth

Asset Quality and Capital Position:

  • Gross NPA as of June 30, 2026 stood at 1.31% (3 bps improvement from 1.34%)
  • Networth stood at ₹7,853 crore as of June 30, 2026, showing 19% growth
  • Stable asset quality maintained throughout the quarter

Operational and Strategic Highlights

Branch Network Expansion:

  • Network expanded to 628 branches across 22 states and union territories
  • Operating under 'Urban and Emerging' branch model
  • Focus on deeper market penetration and improved branch productivity

Technology Enhancements:

  • Enhanced AI and digital capabilities across key business processes
  • Improvements in operational efficiency, credit assessment, and customer experience
  • AI framework aligned with RBI's draft Model Risk Management guidance
  • Maintained appropriate human oversight in technology implementation

Market Position and Target Segment:

  • Average loan size: ₹11 lakhs
  • Focus on EWS (Economically Weaker Section) & LIG (Low Income Group) segments
  • Particularly serving semi-urban and rural areas across India
  • Product offerings include loans for buying/constructing residential properties, home improvement and extension, and micro loan against property

Management Commentary

Mr. Rishi Anand, MD & CEO, commented on the favorable operating environment for Low Income housing finance, supported by:

  • Resilient demand
  • Stable affordability
  • Continued strength across Tier II and Tier III markets

Long-term fundamentals remain strong due to:

  • Low mortgage penetration
  • Rising urbanisation
  • Sizeable affordable housing requirement in EWS and LIG segments
  • PMAY-U 2.0 implementation acceleration
  • Easing credit conditions

Funding Profile:

  • Diverse financing sources including term loans, NHB financing, and NCDs
  • Stable access to liquidity maintained

Outlook and Guidance

The company expressed confidence in achieving medium-term guidance targets for:

  • Disbursement
  • AUM growth
  • Profit growth

Strong first-quarter momentum reinforces the company's position for its next phase of growth, focusing on:

  • Expanding home ownership
  • Strengthening operating capabilities
  • Maintaining sound underwriting standards
  • Creating long-term value for customers, shareholders, and all stakeholders