Mumbai, the bustling financial hub of India, has witnessed yet another success story as SRG Housing Finance Ltd. (SRGHFL) announces its Unaudited Financial Results for Q2 and HY1 FY26. The affordable housing finance company has experienced a remarkable surge in key financial metrics, establishing itself as a formidable player in the lending sector. The company's Assets Under Management (AUM) soared to ₹866.64 crore in Q2 FY26, reflecting a 33.21% year-on-year increase compared to ₹650.56 crore in the same quarter of the previous fiscal year, alongside an 8.96% quarter-on-quarter increase from ₹795.39 crore in Q1 FY26.
SRG's robust growth trajectory is underscored by its operational expansion, now boasting 93 branches across 6 states and 1 Union Territory. The company's strategic entry into four new southern markets marks a significant milestone, further cementing its presence in India's burgeoning affordable lending corridor. This expansion is pivotal for SRG as it aims to cater to the rising demand for housing finance in various regions, enhancing accessibility for potential homeowners.
The financial results for Q2 FY26 reflect a surge in business activity and operational efficiency. Notably, loan disbursements reached ₹116.59 crore, showcasing an 85.18% year-on-year growth compared to ₹62.96 crore in Q2 FY25 and a 45.74% increase from ₹80 crore in Q1 FY26. This impressive performance is attributable to SRG's prudent pricing strategies and disciplined underwriting practices across its housing loan and loan against property (LAP) products, which have significantly contributed to sustained growth during the HY1 period.
Profitability has also strengthened, with SRG achieving steady profit expansion in Q2 FY26, driven by higher income, stable spreads, and effectively controlled operating costs. The company's commitment to maintaining strong credit discipline is evident with a Loan Spread of 9.01%, while asset quality remains resilient, reflecting the company's dedication to prudent lending practices. The Gross Non-Performing Assets (NPA) stood at 1.88%, and the Net NPA at 0.64%, reaffirming the company’s robust financial health.
In conclusion, SRG Housing Finance Ltd. has not only showcased impressive financial growth but has also demonstrated a clear commitment to expanding its service footprint while maintaining a strong focus on profitability and asset quality. With the housing finance sector poised for further growth, SRG's performance positions it well to capitalize on emerging opportunities in the market.
