1. Opening Hook
As banks chase digital unicorns and fintechs drown in burn rates, India Shelter quietly keeps doing what it does best — lending roofs and reality checks to India’s small-town dreamers. While RBI trims rates and the world argues about inflation, the Gurugram-based lender is busy expanding branches and managing delinquency like a street-smart baniya.
Asset quality jitters? Sure. But MD Rupinder Singh says it’s all “seasonality.” Translation: it’s raining EMIs, not defaults. Grab your chai — it’s one of those quarters where the numbers are solid, but the real story hides in the margins.
2. At a Glance
- AUM – ₹9,252 Cr: Up 31% YoY; growth engine refuses to cool.
- Disbursements – ₹931 Cr: Only 12% up — monsoon blamed, Excel forgiven.
- PAT – ₹122 Cr: Up 35%; profitability still punching above its weight.
- ROE – 17%: Good enough to make private banks jealous.
- Stage-3 – 1.2% / Net Stage-3 – 0.9%: Asset quality steady, not squeaky.
- Cost of Funds – 8.5%: Falling gently, like repo rates in an RBI dream.
- Branches – 299: Small towns, big ambition.
3. Management’s Key Commentary
“We delivered another quarter of sustained performance.”
(Translation: We dodged the slowdown like pros — with spreadsheets and optimism.)
“AUM up 31%, PAT up 35%.”
(Translation: We’re growing faster than our customers’ income statements.)
“Credit cost stable at 0.5%.”
(Translation: We’re not losing sleep over EMIs — yet.)
“Stage-3 at 1.2%, net 0.9%.”
(Translation: Defaults exist, but
they’re too polite to grow.)
“Cost to income at 35%, down 170 bps.”
(Translation: Efficiency improved — HR still doesn’t believe it.)
“We continue to see huge demand in Tier-2 and Tier-3 towns.”
(Translation: Metro fatigue is real; Bharat is borrowing.)
“ROE of 17% with leverage at 2.9x.”
(Translation: We like leverage, but not the Lehman Brothers way 😏)
4. Numbers Decoded
| Metric | Q2FY26 | YoY Change | Comment |
|---|---|---|---|
| AUM (₹ Cr) | 9,252 | +31% | Small-ticket rockets fuel growth |
| Disbursements (₹ Cr) | 931 | +12% | Monsoon, GST delays — excuses well-practiced |
| Portfolio Yield | 14.9% | Stable | Consistency: the new cool |
| Cost of Funds | 8.5% | ↓10 bps | Banks are finally kind |
| NII Growth | +33% | Still riding AUM wave | |
| Opex/AUM | 4.1% | ↓30 bps | Scale kicking in |
| Cost/Income | 35% | ↓170 bps | Excel diet working |
| Stage-3 | 1.2% | Flat | Flat is the new great |
| Credit Cost | 0.5% | Stable | Controlled aggression |
| ROE | 17% | ↑20 bps | Attractive, not aggressive |
(When your biggest problem is “too stable,” you know you’re doing finance right.)
5. Analyst Questions
Q: Disbursements slowed — worried?
A: “Rains and GST delays hit momentum.”
(Translation: Blame weather, not underwriting.)
Q: Asset quality spike in Stage-2 loans?
A: “Customers slip but come back — long-term game.”
(Translation:
