1. At a Glance
India Shelter Finance Corporation Ltd is what happens when affordable housing decides to behave like a premium business. As of the latest quarter, the company is sitting at a market capitalisation of ₹8,589 Cr, trading near ₹791, down ~7.7% over 3 months and ~14.4% over 6 months, which basically means the stock market has been in a mild sulk despite the company printing numbers like it’s exam season in Kota.
Q3 performance continues the theme: Sales ₹390 Cr (+28.1% YoY), PAT ₹124 Cr (+29.2% YoY), and an AUM of ₹10,365 Cr (management disclosed, ~31% YoY growth). ROA is hovering around 5.5% (TTM), ROE around 15%, and the company still has the audacity to maintain GNPA at ~1% while lending to first-time, informal-income borrowers in Tier 2 and Tier 3 India. Cost-to-income at 41%, capital adequacy at a comical 70.9%, and average LTV at ~52%.
In short: the balance sheet looks conservative, the growth looks aggressive, and the valuation is stuck somewhere in between wondering what to do next.
2. Introduction
Affordable housing finance is usually sold as a “steady but boring” story. Low yields, high volumes, thin margins, and constant fear of NPAs popping up the moment the economy sneezes. India Shelter Finance politely ignored this memo.
Founded in 1998, the company spent years quietly building a loan book focused on first-time homebuyers, self-employed borrowers, and customers whose income proofs are more “trust me bro” than Form 16. Fast forward to FY25–FY26, and the result is a housing finance company with 35–38% AUM CAGR, profitability metrics that many NBFCs would frame and hang on the wall, and asset quality that refuses to misbehave.
The IPO in late 2023 brought the company into public market glare, raised ₹1,200 Cr (₹800 Cr fresh), and gave it the capital firepower to
keep compounding without immediately running back to lenders with a begging bowl.
But the big question remains: is this a structurally superior affordable housing franchise, or just a golden period where everything is going right at once?
3. Business Model – WTF Do They Even Do?
India Shelter Finance does two things. That’s it. No secret sauce with 17 verticals.
- Home Loans (58% of AUM)
Loans for purchase or self-construction of residential property, primarily for first-time homebuyers. - Loan Against Property (42% of AUM)
LAP products for self-employed borrowers using residential property as collateral.
The real differentiation is who they lend to:
- 70% first-time mortgage borrowers
- 74% self-employed
- 73% EWS & LIG customers
- 91% from Tier 2 & Tier 3 cities
- 99% loans with a woman applicant
This is not accidental ESG marketing. Having a woman applicant improves repayment behaviour and social stickiness. Lending in smaller towns reduces speculative froth. Low ticket size (~₹10 lakh) spreads risk beautifully. And keeping LTV around 52% ensures even a bad loan doesn’t become a balance-sheet horror movie.
So yes, the business looks simple. But execution is doing the heavy lifting.
4. Financials Overview
Quarterly Performance Comparison
| Metric | Latest Qtr (Dec 2025) | YoY Qtr (Dec 2024) | Prev Qtr (Sep 2025) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 390 | 304 | 369 | 28.1% | 5.7% |
| Financing Profit (₹ Cr) | 163 | 127 | 161 | 28.3% | 1.2% |
| PAT (₹ Cr) | 124 | 96 | 122 | 29.2% | 1.6% |
| EPS (₹) | 11.41 | 8.91 | 11.24 | 28.0% | 1.5% |
