Performance Highlights

  • Assets Under Management (AUM) stood at ₹18,010 crore as of September 30, 2026, a growth of 27% year-on-year (YoY) and 6.3% quarter-on-quarter (QoQ).
  • Quarterly Disbursements reached ₹1,705 crore, an increase of 32.2% YoY and 4.7% QoQ.
  • Profit After Tax (PAT) was ₹170 crore, registering a growth of 29.1% YoY and 6.5% QoQ.
  • Net Interest Income (NII) grew by 31.9%.
  • Return on Assets (RoA) remained healthy at 4.2%.
  • Return on Equity (RoE) improved by 40 basis points (bps) sequentially to 14.9%.

Operational and Business Metrics

  • The branch network expanded by 6 during the quarter, taking the total to 181 branches and 379 touchpoints.
  • Individual housing loans accounted for 84% of the portfolio.
  • Origination yield, excluding co-lending, was stable at 13%.
  • Key markets of Maharashtra, Gujarat, and Madhya Pradesh delivered strong growth. Uttar Pradesh, Rajasthan, NCR, and Karnataka also recorded strong YoY growth. Tamil Nadu returned to growth with a 12% increase in Q2 after being marginally down in H1.
  • The average ticket size for new originations is ₹15-16 lakh.
  • The portfolio mix is approximately 30% apartments/rowhouses (developer-led), 30% self-construction, and 1-2% plots. Repair and renovation loans constitute about 1% of AUM.
  • The company certified a further 100 homes under its Green Homes initiative, taking the cumulative number to 650.

Asset Quality

  • Early delinquency indicators were stable sequentially: 1+ days past due (DPD) at 4.7% and 30+ DPD at 3.2%.
  • Gross Stage 3 (GNPA) improved by 10 bps sequentially to 1.7%.
  • Credit cost for the quarter was contained at 40 bps.
  • Provision coverage on Stage 3 assets was 23.6%.
  • Including management overlays held above ECL requirements, the total provision coverage to Stage 3 stood at 46.4%.
  • Balance transfer (BT) outflows were reported at around 4.5%.

Financial Metrics

  • Total Income for the quarter stood at ₹567 crore, up 18.4% YoY and 5.0% QoQ.
  • Portfolio yield, excluding co-lending, was 13%.
  • Cost of borrowing remained at about 7.8%, with the incremental borrowing cost at 7.5%.
  • Spread, excluding co-lending, remained healthy at 5.2%.
  • Net Interest Margin (NIM) remained at 6.0%.
  • The cost-to-income ratio improved to 30.8% from 32.7% in the previous quarter.
  • Operating cost to assets stood at 2.6% compared to 2.8% in Q1 FY27.
  • Pre-provision operating profit (PPOP) grew by 26.1% YoY to ₹238 crore.

Funding and Capital

  • The funding base as of September 2026 was diversified: Private and public sector banks (58%), NHB (14%), Assignment and co-lending (20%), with the balance from NCDs, ECBs, and NBFCs.
  • Direct assignment transactions of ₹281 crore were executed in the quarter.
  • Co-lending disbursements were low at ₹1.8 crore, taking the co-lending portfolio to ₹593 crore (3.3% of AUM). Management expects an uptick in Q3 FY27.
  • Capital Adequacy Ratio (CRAR) was 39.8%, with Tier 1 capital at 39.4% (vs. 42.6% and 42.2% at the end of June 2026).
  • Net worth stood at ₹4,665 crore.
  • Book value per share is ₹446.
  • The cost of hedging for ECB borrowings is currently in the range of 3% to 3.5%.

Technology and Efficiency

The company highlighted four in-house AI capabilities:

  • Cue: Records and analyses 95% of customer calls.
  • ClariFi: Prepares a single case page for underwriters on 100% of loan files.
  • BankLens: Turns a bank statement into a cash flow view in about a minute.
  • DocIQ: Reads all documents that form the basis for underwriting.

Management aims to reduce the opex-to-assets ratio by 10 bps year-on-year.

Management Commentary and Outlook

  • CEO Manoj Viswanathan reiterated his full commitment to the company, with his current term extending until July 2028 and intention to remain available for reappointment subject to approvals.
  • The company is targeting an AUM of ₹20,000 crore by March 2027 (25% growth).
  • RoE targets are 15% exit for FY27 and 16% exit for FY28.
  • The company is committed to maintaining a spread of 5.0-5.2%. PLR increases will be considered based on borrowing cost movements and in line with new RBI draft guidelines; the recent 25 bps repo rate hike has not yet translated into higher borrowing costs.
  • Regarding the RBI's draft circular on insurance distribution fees, the estimated impact is a 35 bps reduction in RoA. Management expects to mitigate 10 bps through concessions and plans to make up the remaining 20-25 bps by potentially increasing the share of Loan Against Property (LAP), assignments, or slight pricing changes.
  • Asset quality is expected to be maintained with gross NPA around 1.7% and credit cost around 40 bps.
  • The guardrail for product mix is 80% housing loans and 20% other products (including LAP).
  • The company does not foresee a significant impact from drought in certain regions, as its customer base is largely in the manufacturing and service sectors in larger cities, with minimal dependence on agriculture.

Q&A Highlights

Key topics addressed in the Q&A session included: exposure and strategy in drought-affected areas; outlook on spreads and margin in a rising rate environment; plans for PLR hikes; impact of the RBI's insurance distribution fee circular; growth momentum and team stability; reasons for yield fluctuations; strategy for LAP growth; opex optimization; bounce rates in October; branch addition plans (20-25 per year); growth in southern markets (attributed to the self-construction nature); reasons for improved asset quality; rejection rates; and the use of AI for future efficiency gains.