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SRG Housing Finance (NSE:SRGHFL): What Did Q1 FY27 Earnings Reveal?

SRG Housing Finance (NSE:SRGHFL): What Did Q1 FY27 Earnings Reveal?

Source: Krish Capital Pty Ltd

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SRG Housing Finance Limited (NSE:SRGHFL) filed its Q1 FY27 Earnings Presentation with NSE on 11 August 2026, disclosing unaudited financial results for the quarter ended 30 June 2026. The company reported an assets under management figure of INR 10,764 million and a profit after tax of INR 85 million for the period.

Key Highlights

  • AUM grew 35.3% year-on-year to INR 10,764 million in Q1 FY27, while the sequential quarter-on-quarter increase was 3.3% from INR 10,422 million in Q4 FY26.
  • Profit after tax rose 25.0% year-on-year to INR 85 million in Q1 FY27, with diluted EPS at INR 5.39 compared to INR 4.32 in Q1 FY26.
  • GNPA improved to 1.73% in Q1 FY27 from 1.85% in Q1 FY26, and NNPA stood at 0.63%, reflecting stable portfolio quality as disclosed in the presentation.
  • Capital adequacy ratio was reported at 39.21%, and the ACUITE long-term credit rating stands at A- with a Stable outlook as stated in the filing.

About the Company

Established in 1999 and headquartered in Rajasthan, SRG Housing Finance Limited (NSE:SRGHFL) is a National Housing Bank-registered housing finance company focused on affordable lending to rural and semi-urban borrowers across six states and one Union Territory. The company offers home purchase, self-construction, renovation, extension, and loan against property products. As of Q1 FY27, it operates 96 branches, serves over 25,000 customers, and maintains a workforce of more than 1,000 employees in the NBFC and housing finance sector.

Announcement in Detail

The Q1 FY27 earnings presentation filed under Regulation 30 of SEBI (LODR) Regulations, 2015 discloses total net income of INR 301 million for the quarter ended 30 June 2026, up 15.8% year-on-year from INR 260 million. Net interest income stood at INR 270 million, a 32.4% year-on-year increase, while interest income reached INR 509 million, up 37.2% from INR 371 million in Q1 FY26. Disbursements for the quarter were INR 672 million, a decline of 16.0% year-on-year from INR 800 million and 51.9% sequentially from INR 1,396 million in Q4 FY26.

The presentation reports that the cost of borrowing fell 26 basis points year-on-year to 10.77%, while the net interest margin stood at 10.21%, compared to 10.48% in Q1 FY26. The operating expense ratio declined 241 basis points year-on-year to 6.69%. Return on average assets was 2.83% and return on average equity was 11.25% on an annualised basis. The average ticket size increased 21% year-on-year to INR 13.19 lakhs, and average loan-to-value across the portfolio stood at approximately 52%.

Impact on Investors

Investors will note that AUM and PAT growth remained positive year-on-year, while the sequential decline in disbursements and new approvals warrants attention. The filing shows new approvals fell 28.0% year-on-year to INR 585 million and 65.8% quarter-on-quarter from INR 1,713 million in Q4 FY26, which shareholders will observe may indicate near-term origination pressure. The cost-to-income ratio rose 333 basis points sequentially to 66.47%, as disclosed in the presentation.

The disclosed leverage ratio increased to 2.92x in Q1 FY27 from 2.23x in Q1 FY26. The filing also shows total liquidity of INR 925 million as of 30 June 2026, comprising cash, investments, and unutilised credit lines. The capital adequacy ratio of 39.21% remains well above regulatory requirements as stated in the presentation, which the disclosed terms indicate provides a buffer for balance sheet expansion.

Sector / Market Context

India's affordable housing finance segment continues to draw institutional attention, with the National Housing Bank supporting smaller HFCs through refinance lines. According to NHB data, housing credit to the priority sector, particularly in rural and semi-urban geographies, has been a policy focus under the Pradhan Mantri Awas Yojana framework, providing a demand backdrop for companies with rural-focused lending models such as SRGHFL.

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