Sammaan Capital: ₹1,800 Cr Annual Loss – From Housing Dreams to NPA Nightmares
1. At a Glance
Sammaan Capital’s Q1 FY26 looked almost… normal — ₹2,400 Cr revenue, ₹334 Cr profit, 6.9% NIM. But scratch the surface and FY25 still screams disaster: a ₹1,800 Cr annual loss, a negative ROE of -8.7%, and financing margins that once turned -151% in a single quarter (Q3 FY25). In short: the balance sheet’s recovering, but the ghosts of past lending excesses still haunt like unpaid rent.
2. Introduction
Remember Indiabulls Housing Finance? The once high-flying mortgage lender with breakneck growth, chunky dividends, and a fondness for corporate real estate loans? It’s now Sammaan Capital — perhaps to shed baggage, or perhaps because “Housing Finance Ltd” didn’t have the same vibe after a multi-year NPA saga.
The company’s core play is affordable and mid-ticket housing loans — but its past portfolio had more “fancy developer financing” than the NHB manual would approve. Cue provisioning, shrinking loan book, and a brand makeover to convince markets they’re back to basics.
3. Business Model (WTF Do They Even Do?)
Primary Business: Home loans, loan against property, corporate mortgage loans, lease rental discounting.
Moat: Distribution network, brand recall (even post-rebrand), NHB license.
In essence: borrow cheap, lend slightly less cheap, and pray your customers pay back on time.
4. Financials Overview
Metric
Q1 FY26
Q1 FY25
Q4 FY25
YoY %
QoQ %
Revenue (₹ Cr)
2,400
2,207
2,107
8.8%
13.9%
EBITDA (₹ Cr)
480*
426*
455*
12.7%
5.5%
PAT (₹ Cr)
334
327
324
2.1%
3.1%
EPS (₹)
4.04
6.59
3.91
-38.7%
3.3%
*EBITDA proxied via Financing Profit.
Commentary: Revenue and margins look stable now, but the YoY EPS drop is largely optical — last year’s Q1 had unusually high earnings before the provisioning tsunami of FY25’s later quarters.
5. Valuation (Fair Value RANGE only)
Method 1: P/B
Book Value = ₹263/share
Housing finance peers trade at 0.8–2.5× BV depending on asset quality.
FV Range (PB) = ₹210 – ₹660
Method 2: P/E
FY26E PAT (annualised from Q1) ≈ ₹1,336 Cr
With sector P/E range 5–15× → FV Range = ₹65 – ₹195
Method 3: Dividend Yield Model
FY24 payout was nil; historic average ~30% in good years. Assuming return to ₹5/share dividend in 3 years at 10% cost of equity → PV ≈ ₹120
