Company Overview

India Shelter Finance Corporation Limited (CIN: L65922HR1998PLC042782), a Housing Finance Company registered under Section 29A of the National Housing Bank Act, 1987, reported strong financial performance for FY 2025-26 with 33% YoY growth in net profit to ₹503.15 crore. Total income increased 30% to ₹1,528.58 crore, supported by Gross AUM reaching ₹11,044 crore (29.4% YoY growth) and disbursements of ₹3,834 crore.

Financial Performance Highlights

Income Statement (FY26 vs FY25)

  • Total Income: ₹1,528.6 crore (FY25: ₹1,175.9 crore) - 30% increase
  • Profit After Tax: ₹503.1 crore (FY25: ₹377.9 crore) - 33% increase
  • Basic EPS: ₹46.63 (FY25: ₹35.18)
  • Return on Assets: 5.8%
  • Return on Equity: 17.0%

Balance Sheet Position

  • Net Worth: ₹3,198 crore (18.05% YoY growth)
  • Total Assets: ₹96,149.76 crore (24.1% increase)
  • Loans (Net): ₹85,685.48 crore (25.0% increase)
  • Capital Adequacy Ratio: 56.36% (Tier I: 56.08%, Tier II: 0.28%)

Asset Quality

  • Gross Stage-3 Assets: 1.25% (1.2% in company reporting)
  • Net Stage-3 Assets: 0.93% (0.9% in company reporting)
  • Provision Coverage Ratio: 25.41%
  • Credit Cost: 0.5%

Operational Excellence

Distribution Network

Expanded to 307 branches across 15 states (added 41 new branches in FY26) with 91% presence in Tier II and Tier III markets. Maintained average vintage of >6 years in all operational states with 99% of loans sourced through internal teams.

Digital Transformation

Achieved 95% digital collections, 82% customer app registration, 72% service requests on app, 92% account aggregator penetration, and 99% e-signing penetration, significantly reducing paper consumption.

Customer Profile

Served 1,38,371 customers with 72% first-time mortgage borrowers, 76% self-employed customers, 81% LIG + MIG customers, 99% women applicants, average ticket size of ₹10 lakhs, and loan-to-value ratio of 52%.

Funding and Liability Management

Borrowing Profile

Total borrowings of ₹5,681 crore with cost of funds at 8.2% (improved from 8.7% in FY25). Maintained relationships with 30+ institutional lenders.

Funding Mix

  • Banks & Financial Institutions: 42%
  • Securitization & Direct Assignment: 26% (₹1,022 crore through DA of LAP assets)
  • NHB Refinance: 15% (₹579 crore disbursed, ₹1,236 crore outstanding)
  • SIDBI Refinance: 6% (first-time sanction, ₹497 crore availed)
  • Co-lending: 6% (₹239 crore disbursed with partner banks retaining 80%)
  • External Commercial Borrowings: 3% (fully hedged $30 Mn facility)
  • Debt Capital Markets: 2% (₹150 crore NCD issuance)

Corporate Actions

Dividend Declaration

Board recommended final dividend of ₹10 per equity share (200% of face value) with dividend payout ratio of 22%. Payment scheduled on or before August 15, 2026, if approved at AGM.

ESOP Activity

Issued and allotted 863,162 equity shares under Employee Stock Option Plans (ESOP 2021, 2023, and 2025) across 14 allotment dates. Outstanding options stood at 12,98,159 as of March 31, 2026.

Subsidiary Update

India Shelter Capital Finance Limited ceased to be subsidiary effective December 16, 2025, and is undergoing voluntary liquidation process with no material impact on consolidated financials.

Regulatory Compliance and Governance

Board Composition

7-member board with 4 independent directors including 2 women directors. Held 4 board meetings during FY26 with key reappointments of Mr. Sudhin Bhagwandas Choksey as Chairman and Mr. Rupinder Singh as MD & CEO.

Audit Reports

Clean secretarial audit report by Jitender Singh confirming compliance with Companies Act, SEBI regulations, NHB regulations, and RBI directions. Unqualified statutory audit opinion from S.R. Batliboi & Associates LLP with key audit matter being impairment of financial assets using Expected Credit Loss approach.

Internal Controls

No material weaknesses or significant control deficiencies identified that could adversely impact internal financial controls. Audit Committee reviews observations and corrective actions quarterly.

ESG and Sustainability Initiatives

Environmental

Planted 4,546 trees in FY26 with carbon sequestration of ~90,920 kg per year. Digital operations including 99% e-signing and 95% digital collections significantly reduced paper consumption.

Social

4,800 employees with 21% women at head office and 46% ESOP penetration (excluding front-line staff). CSR initiatives included leukemia treatment support (223 children), community healthcare (7,591 beneficiaries), mid-day meals (1,400 children), and para-athlete support.

Governance

ISO 27001:2022 certification for information security. Active whistleblower mechanism with dedicated email channel. Only 1 POSH complaint filed and resolved during FY26.

AGM Details

28th Annual General Meeting scheduled for July 16, 2026, at 11:00 AM IST through Video Conferencing/Other Audio-Visual Means to consider and approve financial statements, dividend declaration, director appointments, and other ordinary business.

Forward-looking Statements

The document contains forward-looking statements subject to risks and uncertainties including macroeconomic conditions, regulatory changes, and competitive pressures. Company maintains adequate risk management frameworks to address these challenges while continuing its growth trajectory in the affordable housing finance segment.