1. At a Glance
SRG Housing Finance is what happens when micro-credit discipline meets housing finance patience. As of Q3 FY26, the company is sitting on an AUM of ₹943.93 crore, up 33% YoY, while most mid-sized HFCs are still arguing with Excel sheets and credit committees.
Market cap? Around ₹432 crore.
Stock price? ₹275, down ~15% YoY — because markets love shiny largecaps and ignore slow, profitable grinders.
P/E? 14.7, roughly in line with the housing finance median.
Book value? ₹178, so you’re paying ~1.54× book for a lender that lends where banks don’t even bother opening branches.
Latest quarterly PAT is ₹8.21 crore, up 43% YoY, with quarterly revenue of ₹50.45 crore, up 29.6% YoY.
GNPA is 1.84%, NNPA 0.61% — in 95% rural exposure. That’s not a typo.
This is not a fancy urban mortgage play. This is Rajasthan–Gujarat heartland lending, chai-stained files, self-employed borrowers, and long-tenure discipline.
So the real question is: is this a boring compounder… or a capital-hungry branch expansion machine?
2. Introduction
Founded in 1999, SRG Housing Finance didn’t wake up one day and decide to compete with LIC Housing or Bajaj Housing. Instead, it quietly went after a segment most lenders find uncomfortable:
new-to-credit, self-employed, rural borrowers with small ticket sizes and real houses, not PowerPoint houses.
Around 95% of the loan book is rural, average ticket size is just ₹10.94 lakh, and average LTV is a conservative 46.9%. Translation: borrowers have serious skin in the game.
While flashy fintech lenders chase app downloads, SRG is busy running 90 branches across 7 states, mostly in Rajasthan and Gujarat. It’s not pan-India ambition; it’s pin-code domination.
But make no mistake — this is still a leveraged business. Debt stands at ₹685 crore, debt-to-equity 2.45×,
and interest coverage is only 1.51×. So yes, this is not a “sleep well without checking RBI policy” stock.
Yet, for a rural HFC, asset quality has steadily improved over the years. GNPA has slid from 2.56% in Dec 2022 to 1.84% in Mar 2025. That doesn’t happen by accident.
3. Business Model – WTF Do They Even Do?
Imagine explaining SRG Housing to a lazy investor:
“They lend small housing loans to rural self-employed people who banks ignore, but they do it carefully.”
That’s it. That’s the business.
Core products:
- Home construction loans
- Repair, renovation & extension loans
- New & resale home purchase loans
- Loan Against Property (residential + commercial)
Product mix FY25:
- Housing loans: 73.06%
- LAP: 26.94%
Customer profile:
- Self-employed: 74.5%
- Salaried: 25.5%
This is not salary-slip lending. This is cash-flow assessment, local knowledge, and collateral comfort. SRG relies on:
- Low LTV
- Physical verification
- Local branch-level underwriting
And yes, that also means higher operating costs, but it gives pricing power. That’s why OPM sits at a chunky 60.7%.
The model works as long as:
- Credit discipline stays tight
- Cost of funds doesn’t spike dramatically
- Branch expansion doesn’t dilute underwriting
Miss one, and rural NPAs remind you who’s boss.
4. Financials Overview
Quarterly Performance
