Management Participants

  • Mr. Rishi Anand – Managing Director and Chief Executive Officer
  • Mr. Rajesh Viswanathan – Chief Financial Officer
  • Mr. Sanjay Moolchandani – Head, FP&A and Investor Relations

Key Updates and Condolences

Management expressed condolences on the sad demise of Independent Director and Non-Executive Chairperson, Shri Raj Vikash Verma, on October 16, 2026. Shri Deo Shankar Tripathi, previously Executive Vice Chairman, was appointed as Interim Non-Executive Chairman. Shri Nikhil Goyal, Managing Director of Blackstone, joined the Board as an Additional Director effective August 12, 2026.

Financial and Operational Performance (Q2 & H1 FY27)

Assets Under Management (AUM): Stood at ₹32,643 crores as of September 30, 2026, registering a Year-on-Year (Y-o-Y) growth of 18%. On a like-to-like basis (adjusting for change in disbursement recognition), AUM growth was 20%.

Disbursements: Q2 FY27 disbursements were ₹2,577 crores, representing a Y-o-Y growth of 22%. On a like-to-like basis, H1 FY27 disbursement growth was 21% Y-o-Y.

Portfolio Composition: The portfolio remains fully secured and retail. Home loans accounted for 73% of AUM, while non-home loans were 27%. The average ticket size was ₹11.3 lakh with a loan-to-value (LTV) ratio of 61%. The salaried segment contributed 55% of AUM.

Asset Quality: Gross NPA stood at 1.34% as of September 2026, an improvement of 8 basis points Y-o-Y. Net NPA on AUM was 1.0%. The Stage 3 provision coverage ratio was 34.5%. Collection efficiency for the quarter was 99%.

Balance Transfer Outflows: Were at 5.1% in Q2 FY27, an improvement of 40 basis points compared to Q2 FY26.

Profitability: PAT for H1 FY27 was ₹591 crores (₹504 crores in H1 FY26). Q2 FY27 PAT was ₹308 crores (₹266 crores in Q2 FY26). Adjusted for ESOP cost, PAT grew by 22% in H1 and 20% in Q2. Q2 FY27 ROA and ROE were 4.2% and 15.2% respectively. Adjusted for ESOP cost, ROA and ROE were 4.4% and 15.8% for Q2, and 4.3% and 15.5% for H1.

Credit Cost: Guidance for the full year is 25 basis points. Management is confident of ending FY27 with headline NPA in the range of 1.10%-1.15%.

Funding and Liquidity

Borrowings: Overall borrowings as of September 30, 2026, stood at ₹20,400 crores (₹17,600 crores on September 30, 2025). The borrowing mix was: Banks (53%), NHB (22%), NCDs (15%), ECB (7%), and Others (3%).

Incremental Borrowings: For Q2 FY27 were ₹1,550 crores at a competitive cost of 7.5%. There were no fresh drawdowns from NHB during the quarter.

Cost of Funds: Exit cost of funds as of September 30, 2026, was 7.7%. Approximately 75% of assets and liabilities are floating rate.

Undrawn Sanctions: Were ₹1,466 crores as of September 30, 2026. A fresh sanction of ₹1,000 crores was received from NHB post-quarter-end.

Liquidity: Stood at ₹2,040 crores at the end of Q2 FY27.

Portfolio Yield and Spread: Exit portfolio yield was 13.4%, and the exit spread was 5.73%.

Expenses and ESOP

Operating expenses included a charge of ₹28 crores in H1 and ₹14 crores in Q2 FY27 related to the Employee Stock Option Scheme (ESOP) initiated in January 2026 (exercise price: ₹425 per share). Adjusted for this, the cost-to-income ratio was 33.9% for Q2 (a Y-o-Y decline of 230 bps) and 34% for H1 (a Y-o-Y decline of 215 bps). The ESOP cost is amortized over five years.

Branch Network and Expansion

The company expanded to Jammu, taking the total network to 632 branches across 23 states, covering over 555 districts as of September 2026. The guidance is to add 40-50 branches in FY27.

Credit Rating Upgrades

India Ratings and ICRA upgraded the company's long-term rating to AA+ (Stable). All three rating agencies (India Ratings, CARE, and ICRA) now rate the company AA+ on a stand-alone basis.

Technology and Risk Management

The company leverages AI and data analytics across the lending cycle. It is building in-house platforms for document intelligence, voice intelligence, decisioning intelligence, and enterprise access management. The risk management approach involves assessing risk at the customer and branch level without broad-based tightening of underwriting norms.

Industry Outlook and Guidance

Demand for affordable housing finance is supported by structural needs and expansion of formal credit. Competition is increasing. Management reiterated its medium-term guidance of 18-20% disbursement growth and 20% AUM and PAT growth for FY27. They expect disbursement growth of 20%+ in H2 FY27.

Impact of RBI Monetary Policy

The recent 25 bps repo rate hike to 5.5% and a shift towards calibrated tightening marks a change in the interest rate environment. Management remains mindful of its implications but believes the floating-rate nature of most assets and liabilities (75%) provides the ability to reprice and protect spreads.

Q&A Highlights

Stage 2 Assets: Increased slightly quarter-on-quarter but was attributed to seasonality. No specific geographies showed undue stress.

Assignment Income: The net impact (PBT level) of assignment income and unwinding was only about ₹10 crores higher Y-o-Y. The company expects to do ₹2,000-₹2,050 crores of assignment in FY27 (₹1,700-₹1,800 crores in FY26).

Non-Home Loan Growth: Was lagging due to tightened underwriting in Q4 FY26 but has started to improve. The mix is expected to stabilize at ~28% by Q4 FY27.

Geographic Performance: Disbursement growth in Uttar Pradesh and Karnataka was similar at ~23%.

Cost of Funds Post-Upgrade: The AA+ rating could lead to 20-30 bps cheaper NCD issuances and access to new lender pools (e.g., pension funds, life insurance companies).

El Niño Impact: Only 5-6% of AUM is in the 30 districts (out of 88 high-priority) where the company operates that are affected. The credit policy caps exposure to seasonal/agri income at 25% of a borrower's total income.

1+ DPD: Was reported to be flattish and stable.

Disbursement Recognition: The company transitioned to recognizing disbursements on a cheque clearance basis from Q1 FY27 instead of cheque handover. This caused a one-time impact in Q1 (approx. ₹350 crores lower disbursement) but evened out in Q2, making Y-o-Y comparisons valid.

October Disbursements: Were comfortable, with a run rate moving upward to nearly ₹900 crores from an average of ~₹800 crores.

IRDAI Regulations: The impact of draft guidelines on insurance income is pending final guidelines. The company will calibrate levers like fee income and opex if needed.

NHB Outlay: There is no official circular, but the company is engaged with NHB and views indications positively.

Closing Remarks

Management expressed confidence in delivering strong Q3 results and reiterated their guidance. They wished participants a Happy Diwali and prosperous New Year.