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1. At a Glance
Udaipur is not where most people expect a listed housing financier to keep its head office, and ₹53.95 crore is not a quarter that makes anyone’s terminal beep. Both facts describe SRG Housing Finance, which reported Q1 FY27 revenue of ₹53.95 crore against ₹42.62 crore a year earlier, and net profit of ₹8.47 crore against ₹6.78 crore.
AUM reached ₹10,764 million — ₹1,076 crore — up 35.3% year on year per the earnings presentation. Disbursement for the quarter was ₹672 million, against ₹800 million in Q1 FY26 and ₹1,396 million in Q4 FY26, declines of 16.0% and 51.9% respectively as the company reported them. GNPA was 1.73%, down from 1.85% a year ago; NNPA 0.63%.
Sequentially, revenue was ₹57.23 crore in Q4 FY26 and ₹53.95 crore now. PAT went ₹9.25 crore to ₹8.47 crore. Diluted EPS: ₹5.89 to ₹5.39.
In March, Acuité upgraded the company from BBB+ (Positive) to A- (Stable). The presentation attributes a 26 bps year-on-year fall in borrowing cost, to 10.77%, to that improved credit profile. Cost of money down, gross yield down further — 19.23% against 21.86% — and NIM at 10.21% versus 10.48%.
The company also allotted 4,400 equity shares to employees under ESOPs at ₹200 per share during the quarter. Four thousand four hundred. On a base of 1.57 crore shares, that is the kind of number an auditor confirms and then quietly moves past.
A lender whose loan book grew 35% while its quarterly disbursement fell by half sequentially has an arithmetic worth walking through. Section 4 has the table.
2. Introduction
SRG Housing Finance Limited was incorporated on 10 March 1999, a National Housing Bank registered company with its head office in Udaipur, Rajasthan. It extends home loans and loans against property. Per Acuité, the company is promoted by Mr. Vinod Kumar Jain, who has over three decades of experience in financial services. It is listed on both BSE and NSE.
The operating footprint as of Q1 FY27 is 96 branches across six states and one union territory: Rajasthan (35), Gujarat (25), Maharashtra (13), Madhya Pradesh (13), Karnataka (6), Andhra Pradesh (3) and Delhi (1). Around 25,000-plus customers, 1,000-plus employees.
The last two years have been a sequence of funding events. In June 2024 the board approved raising ₹100 crore and increasing capital; a preferential allotment of 7,76,263 equity shares followed in September 2024; a further 13,68,000 equity shares were approved in January 2025, with an EGM in February 2025. In August 2025 the board approved secured NCDs up to ₹250 crore via private placement for FY 2025-26. In April 2026 the board approved raising the borrowing limit to ₹2,500 crore, subject to shareholder approval.
On the May 2026 call, management set out an FY27 disbursement target of about ₹600 crore, up from an earlier ₹500 crore figure referenced by an investor, and an AUM range of ₹1,300–1,400 crore over the next twelve months with a stated aspiration of ₹1,500 crore. Management also said it may consider raising equity in the fourth quarter if growth stays on track, else in Q1 or Q2 of the following year, and guided ROE to roughly 12–13% over the next one to two years.
Geographically, management said expansion is being pointed south — Tamil Nadu and Telangana are the next markets, with approximately 10 to 15 new branches planned there, and no further expansion planned in Gujarat, Maharashtra, Rajasthan or Madhya Pradesh.
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3. Business Model: WTF Do They Even Do?
They lend small amounts of money to people who build their own houses in places that do not appear on airline route maps, and they secure it against the house.
The mechanics: housing loans are 73% of the Q1 FY27 AUM mix, loan against property 27%. In rupee terms, ₹7,854 million housing and ₹2,911 million LAP. Average lending rate: 18.84% on housing, 19.99% on LAP. Average LTV 53.62% and 48.30% respectively — the company describes the model as low-risk secured lending with LTV under 50%, and the blended figure for the quarter was ~52%.
The borrower, per the presentation: 94% of the loan book rural, 79% self-employed, 95%-plus with women co-borrowers. On the May call, management described the customer base as kirana shops, dairy, contractors, spare parts dealers. These are people whose income does not arrive as a salary slip, which is precisely the point — the company’s stated expertise is informal income assessment, and 88% of sourcing runs through field-based relationship managers rather than DSAs.
The average ticket size tells its own story. ₹6.17 lakh in FY24, ₹9.15 lakh in FY25, ₹15.44 lakh in FY26, and ₹13.19 lakh in Q1 FY27 — up 21% year on year, which the presentation attributes to expansion into newer markets and higher construction costs.
