Sammaan Capital shares fall 4% after Q1 profit declines 27% to Rs 243 crore, revenue drops 31%

According to a filing with the exchange, the company's consolidated profit declined by 27% to Rs 243 crore in Q1FY27 from Rs 334 crore in the same period a year ago. Total revenue from operations was reported at Rs 1,651 crore in Q1FY27, compared with Rs 2,409 crore in the same period in FY26.

Total income was reported at Rs 1,682 crore. The total disbursement by the company was Rs 3,875 crore across five products to 12,000 new customers, of which 97% were secured loans. The capital adequacy ratio stood at 20.1%.

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Under credit costs, gross recovery stood at Rs 424 crore, while net recovery was Rs 240 crore. The company had total assets under management (AUM) of Rs 56,239 crore, with Residential Housing Finance, including Affordable Housing & Mortgages, accounting for Rs 31,390 crore in AUM.

“As we look ahead, our priorities are clear to accelerate growth responsibly, strengthen earnings, progressively reduce our cost of funds, leverage the capabilities of our parent, deepen our technology-led distribution platform and maintain disciplined risk management,” Banga further said.

The company completed $63 million in bond buybacks as part of its efforts to reduce costs and strengthen asset-liability management. Secondary bond yields have also tightened, while its borrower base has diversified to include private banks, foreign banks and domestic institutions.

Looking ahead, the company expects its cost of funds to decline from 10.0% in Q1FY27 to around 9.3% by the end of FY27, with a further reduction to 8.9% in FY28 and 7.8% by FY30. The lower funding costs are expected to improve net interest margins and support profitability as the company expands.

The company aims to achieve disbursements of Rs 30,000 crore in FY27, with Rs 10,000 crore targeted in the first half and Rs 20,000 crore in the second half. Disbursements are expected to rise further to Rs 40,000–50,000 crore in FY28 and Rs 50,000–92,000 crore annually by FY29-30.

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The company plans to expand its product portfolio in phases. Digital personal loans, micro loans against property (LAP) and rural home loans are expected to be launched in H2FY27. Gold loans, two- and three-wheeler financing, and retail e-commerce lending are planned for FY28, followed by expansion into core rural individual loans and consumer durable financing in FY29-30.

In the last one month, the stock was up 1.72%, while in the current calendar year, the stock is down 1.30%. In the last one year, it gained 4.05%, following a jump of 40.25% and 67.78% over the last three years and five years, respectively.

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