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SRG Housing Finance
SectorFinancial Services
In the news
NHB Doubles HFC Funding While Forensic Audit Continues on SRG
SRG Housing Finance: The ₹400 Crore Phantom Loan Crisis
SRG Housing Finance shares crash 20% on NHB loan report; company denies allegations
SRG Housing Finance Q1 profit jumps 24.93% to ₹8.47 crore
The Quarter story
The two most recent quarterly results, compared side-by-side.
SRG Housing Finance scales its portfolio and cleans up asset quality, though rising leverage and funding costs need monitoring.
AUM grows from ₹795.39 Cr in Q1 FY26 to ₹10,764 Cr in Q1 FY27, expanding the loan portfolio significantly.
Average LTV rises from 45.50% in Q1 FY26 to 52.19% in Q1 FY27, increasing leverage risk per loan.
GNPA falls from 14.69% in Q1 FY26 to 1.73% in Q1 FY27, showing much cleaner asset quality.
Finance cost climbs from ₹16.75 Cr in Q1 FY26 to ₹239 Cr in Q1 FY27, weighing on overall expenses.
Profit After Tax rises from ₹6.78 Cr in Q1 FY26 to ₹85 Cr in Q1 FY27, driving stronger bottom-line results.
Provisions jump from ₹0.59 Cr in Q1 FY26 to ₹152 Cr in Q1 FY27, reflecting higher risk buffers.
Customers increase from 20,000 in Q1 FY26 to 25,000 in Q1 FY27, widening the borrower base.
Spread narrows from 9.08% in Q1 FY26 to 8.79% in Q3 FY26, squeezing net interest margins.
Borrowing cost eases from 10.99% in Q2 FY26 to 10.77% in Q1 FY27, lowering funding expenses.
Average ticket size fluctuates from ₹10.87 Cr in Q1 FY26 to ₹13.19 Cr in Q1 FY27, showing variable loan sizing.
Company insights, generated from the most recent coverage.
SRG's diversified funding base of 38 lenders (including SBI, HDFC) creates contagion risk, where loss of confidence could trigger liquidity contraction across the affordable housing finance sector.
Divergence between 35% AUM growth and 16% decline in disbursements suggests growth was driven by portfolio retention/inflation rather than new originations, a red flag missed by auditors.
Current Capital Adequacy Ratio (CAR) of 39.21% provides a significant buffer, but write-offs from phantom loans could erode capital by 40-50%, potentially pushing CAR below the 15% regulatory minimum.