India Shelter Finance Corporation Limited

Key Financial Figures

AUM and Disbursements:

  • Gross AUM reached ₹11,997 crores as of September 30, 2026, representing 26% YoY growth (27% normalized for transition impact)
  • Q2 FY27 disbursements were ₹1,126 crores, up 21% YoY and 8% QoQ
  • Highest quarterly disbursement in company history

Profitability Metrics:

  • Q2 FY27 PAT: ₹146 crores (19% YoY growth)
  • H1 FY27 PAT growth: 20% YoY (28% normalized for lower direct assignment income)
  • ROE: 17.3% for Q2 (30 bps improvement YoY)
  • ROA: 5.7% at leverage of 3.1x
  • Net worth: ₹3,401 crores

Margin and Yield:

  • Portfolio yield stable at 14.8%
  • Finance cost stable at 8.2%
  • NIM stable above 9%
  • Spread improvement of 20 bps YoY

Asset Quality:

  • Collection efficiency improved to 98% (from 97% last quarter)
  • GNPA stable at 1.5%
  • 30+ DP stable at 5.2%
  • PCR for Stage 3 stable at 25%
  • Total ECL: ₹97 crores vs regulatory threshold of ₹57 crores
  • BT out rate: ~4% (down 40 bps YoY)

Liquidity and Funding:

  • Liquidity: ₹700+ crores
  • Undrawn sanctions: ₹1,400+ crores
  • Borrowing profile diversified with 30+ counterparties
  • NHB funding share stable at 14%
  • Average borrowing tenure: >8 years
  • ALM positive across all buckets

Operational Highlights

Branch Expansion:

  • Opened 8 branches in Q2 FY27 (none in Q1)
  • On track for 40-45 new branches in FY27

Digital Initiatives:

  • Digital sourcing contribution increased from 4% in Q2 FY26 to 7% in Q2 FY27
  • Investing in tech solutions and AI tools to improve productivity
  • Recently hired senior resources from tech-focused companies

Portfolio Composition:

  • 53% of portfolio in variable/semi-variable rate products (15% variable, 38% semi-variable)
  • Average ticket size: ₹10-11 lakhs
  • Self-employed customers: 75-80% of portfolio
  • Home loan vs LAP mix: Maintaining 68% home loan at balance sheet level

FY27 Guidance Reiterated

  • Gross AUM growth: 25-30%
  • Branch addition: 40-45
  • Spreads: Maintain above 6%
  • Credit cost: 40-50 bps
  • Opex to Gross AUM: Improvement by 15 bps YoY

Q&A Session Highlights

Credit Cost: H1 credit cost at 60 bps includes ₹6 crores scheduled write-off and transition impact. Expect H2 to be better and remain within guided 50 bps for full year.

Interest Rate Environment: 40% transmission of repo rate changes to cost of funds. Multiple levers to offset impact including rating upgrade (expected in coming quarters, potential 15-20 bps cost reduction), repricing new disbursements (30-35% of AUM), and variable rate portfolio (53% of portfolio).

Asset Quality: Focus on <₹8 lakh ticket size segment showing higher delinquency. Identified 750 pin codes out of 8,000 for tightened underwriting. No specific geography concerns, though MP showing normalization after past challenges.

Co-lending: Not currently active due to RBI's CLM-1 model impacting TAT and GST guidelines on excess interest rate.

Rating Upgrade: Engaging with rating agencies (India Ratings, CARE, ICRA). Expect upgrade in coming quarters as 3-year vintage from last upgrade completes.

Competition: Affordable housing ecosystem has multiple players but each has created niche. No significant new competition from prime players due to opex-heavy model (2.75-4% opex to AUM).

Forward-looking Statements

Management expects H2 performance to be better than H1, with improved collections, legal actions yielding results, and disbursement momentum continuing. Targeting monthly run rate of ~₹400 crores disbursement in H2.