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: They may miss EMIs, but they love their houses.)
Q:LAP risk increasing?A:“No, SARFAESI keeps them in check.”(Translation: Legal threats work better than reminders.)
Q:Why not slow growth amid industry stress?A:“We’ve seen demonetization and COVID — this is nothing.”(Translation: We’ve earned our scars, now we lend smarter.)
6. Guidance & Outlook
Management expectsAUM growth of 30–35%, maintaining spreads above6%and credit costs around40–50 bps. The focus remains on Tier-2
