SRG Housing Finance Limited Q2 FY26 Concall Decoded: Loan book up 33%, profits finally woke up, management still allergic to shortcuts
1. Opening Hook
Just when everyone was busy declaring affordable housing “slightly stressed,” SRG Housing Finance walked in with a 33% loan book jump and said “Namaste, we’re fine.” While larger peers complained about DPDs and muted disbursements, SRG quietly crossed ₹867 crore AUM and posted its best-ever quarterly profit. No fireworks, no jargon—just old-school lending discipline and a lot of confidence in rural India.
Management sounded calm, sometimes brutally honest, occasionally philosophical, and completely uninterested in stock prices. Expansion phase hangover? Apparently ending. Cost-to-income? Promised to behave. Rating upgrade? Waiting at the ₹1,000 crore AUM door.
If you like growth without drama, conservative lending with high yields, and a promoter who openly dislikes shortcuts—keep reading. It gets more interesting once the sarcasm meets the spreadsheets.
2. At a Glance
AUM up 33% to ₹867 cr – Growth without shouting “hockey stick” on every slide.
Disbursements up 85% to ₹117 cr – From jog to sprint, without tripping.
PAT up 25% to ₹8 cr – Finally crossed the “serious company” profit zone.
GNPA at 1.88% – Rural book behaving better than urban pessimists expected.
Spread at 9% – Expensive loans, but borrowers still lining up.
CRAR at 42.7% – Capital buffer so thick it could survive a monsoon.
3. Management’s Key Commentary
“Our loan book has grown by 33.21% to ₹867 crore.” (Translation: Growth is real, not PowerPoint-adjusted.) 😏
“Disbursements grew 85% year-on-year.” (Translation: We were slow earlier, now we’re compensating.)
“We were in an expansion phase for the last two years.” (Translation: Costs were ugly, please stop yelling.)
“Cost-to-income will keep decreasing quarter by quarter.” (Translation: Trust us, the pain was temporary.)
“We don’t raise equity based on share price.” (Translation: Market timing is for traders, not lenders.)
“Till ₹1,500–2,000 crore AUM, we don’t need equity.” (Translation: Dilution is not on today’s menu.)
“We run with discipline; no shortcuts.” (Translation: Boring is beautiful in finance.) 😌
4. Numbers Decoded
Source table
Metric
Q2 FY26
YoY Change
AUM
₹867 cr
+33%
Disbursements
₹117 cr
+85%
Income
₹48 cr
+32%
PAT
₹8 cr
+25%
GNPA
1.88%
↓
NNPA
0.64%
Stable
Borrowing Cost
10.99%
Slight ↓
Spread
~9%
Healthy
Takeaway: Growth is accelerating, asset quality is holding, and margins remain juicy—though yields are slowly cooling.
5. Analyst Questions
Will SRG need more fund-raising? Management: Not till ₹1,500–2,000 cr AUM. (Translation: Relax, dilution fans.)
What if markets crash during fund-raise need? Management: We raise money when business needs it. (Translation: Share price tantrums won’t decide capital strategy.)
