Financial Performance Overview

India Shelter Finance Corporation reported unaudited financial results for Q2FY27 (quarter ended September 30, 2026) with continued growth across key metrics.

Key Financial Metrics:

| Particulars (Rs. Crs) | Q2FY27 | Q2FY26 | YoY Growth | Q1FY27 | QoQ Growth | H1FY27 | H1FY26 | H1 YoY Growth |

| Gross AUM | 11,997 | 9,728 | 23% | 11,284 | 6% | 11,997 | 9,728 | 23% |

| Disbursements | 1,126 | 931 | 21% | 641 | Note 1 | 1,767 | 1,817 | Note 1 |

| Spread (%) | 6.6% | 6.4% | - | 6.6% | - | 6.6% | 6.4% | - |

| Opex/Gross AUM | 4.0% | 3.9% | - | 4.0% | - | 4.0% | 4.0% | - |

| PAT | 146 | 122 | 19% | 143 | 2% | 289 | 241 | 20% |

| RoA (%) | 5.7% | 5.8% | - | 5.8% | - | 5.8% | 5.9% | - |

| RoE (%) | 17.3% | 17.0% | - | 17.5% | - | 17.5% | 17.2% | - |

| Gross Stage 3 (%) | 1.5% | 1.2% | - | 1.5% | - | 1.5% | 1.2% | - |

Note 1: During Q1FY27, the Company transitioned to recognizing disbursements on cheque realization rather than cheque handover, which impacted reported disbursement & AUM growth for the quarter. Normalized AUM growth stood at 26-27% YoY.

Operational Performance

Business Growth:

  • Gross AUM reached Rs. 11,997 Cr as of Q2FY27, showing 23% YoY growth
  • Disbursements for Q2FY27 stood at Rs. 1,126 Cr, representing 21% YoY growth
  • Normalized AUM growth (adjusting for accounting change) stood at 26-27% YoY

Expansion Strategy:

  • Added 5 new branches in Q2FY27 as part of branch expansion strategy
  • Total geographic presence reached 312 branches as of September 30, 2026
  • Total employee strength stood at 5,010 employees as of Q2FY27
  • Company operates in 15 states across India with pan-India network

Profitability Analysis

  • Profit after tax grew by 19% YoY to Rs. 146 Cr in Q2FY27
  • Return on Assets (RoA) stood at 5.7% in Q2FY27
  • Return on Equity (RoE) stood at 17.3% in Q2FY27
  • For H1FY27, PAT reached Rs. 289 Cr, showing 20% YoY growth

Borrowings & Liquidity Position

  • Networth reached Rs. 3,401 Cr as of September 2026
  • Company maintained strong liquidity of Rs. 2,210 Cr as of September 2026
  • Cost of funds improved by 30bps YoY to 8.2% in Q2FY27
  • Spreads remained stable at 6.6% in Q2FY27

Asset Quality & Provisions

  • Gross Stage 3 (NPA) remained stable at 1.5% as of September 2026
  • Net Stage 3 remained stable at 1.2% as of September 2026
  • Provision Coverage Ratio (PCR) for Stage 3 remained stable at 25%

Business Model Context

India Shelter provides affordable home loans and loan against property primarily in Tier 2 and 3 geographies in India, serving low-and middle-income segments building or buying their first homes. The company maintains a granular portfolio with strong distribution network.

Management Commentary

Mr. Rupinder Singh, Managing Director and CEO, commented: "We are pleased to announce that the Company delivered another strong quarter of profitable and quality led growth. We disbursed Rs. 1,126 Crs in Q2, registering a growth of 21% YoY. Our Gross AUM reached Rs. 11,997 Crs, normalized AUM growth stood at 26-27%."

Forward-Looking Statements Disclaimer

The document includes standard forward-looking statements disclaimer noting that actual results could differ materially due to risks including fluctuations in earnings, growth management, competition, economic conditions, talent retention, cost overruns, government policies, and interest rate environment.