Sammaan Capital Shares Plunge as Q1 Profit Declines 27% Amid Revenue Slip

Sammaan Capital Shares Plunge as Q1 Profit Declines 27% Amid Revenue Slip​

Shares of Sammaan Capital fell nearly 4% on the NSE after the company released its first-quarter results for FY27. The stock hit the day’s low at Rs 155 following a substantial decline in consolidated profit.

The Q1 report showed that the company's consolidated profit dropped by 27%, settling at ₹243 crore. This figure is significantly lower compared to the ₹334 crore reported during the same period last year.

Financial Performance and Operational Metrics​

For the quarter ended June, total revenue from operations stood at ₹1,651 crore. This represents a sharp decline when compared to the ₹2,409 crore generated in Q1 of FY26. Total income was reported at ₹1,682 crore across both quarters.

The company maintained a capital adequacy ratio of 20.1%. Operations included total disbursements amounting to ₹3,875 crore. These funds were distributed across five product lines and targeted 12,000 new customers, with 97% securing secured loans.

Assets Under Management and Financial Strengthening​

Sammaan Capital reported a robust total assets under management (AUM) of ₹56,239 crore. Residential Housing Finance, which includes Affordable Housing & Mortgages, accounted for a significant portion of this AUM at ₹31,390 crore.

In a strategic move to strengthen its balance sheet and reduce costs, the company completed $63 million in bond buybacks. This effort aids asset-liability management. Furthermore, secondary bond yields have tightened as the borrower base diversifies, encompassing foreign banks, private banks, and domestic institutions.

Strategic Outlook and Growth Roadmap​

Gagan Banga, Managing Director & CEO of Sammaan Capital, emphasized that the company is strategically positioned for growth following the capital infusion and strengthened balance sheet provided by its global parent, the IHC Group. He stated that the focus remains on calibrated and sustainable growth through well-defined risk guardrails.

The company has clear priorities ahead, including accelerating growth responsibly, improving earnings, reducing the cost of funds, and deepening its technology platform. Digital-first approach is core to their strategy across all individual and MSME product segments.

Funding Costs and Future Expansion Plans​

Sammaan Capital projects a steady reduction in its cost of funds, expecting it to drop from 10.0% in Q1FY27. The company aims for the cost of funds to be around 9.3% by the end of FY27, further reducing to 8.9% in FY28 and 7.8% by FY30.

Looking at expansion, Sammaan Capital has ambitious disbursement targets. They plan to achieve ₹30,000 crore in disbursements for FY27, with targeted contributions split across the first half (₹10,000 crore) and the second half (₹20,000 crore).

The long-term vision is set high, aiming for disbursements to rise further to ₹40,000–50,000 crore in FY28. By FY29–30, annual disbursements are targeted to reach between ₹50,000 crore and ₹92,000 crore.

Product Diversification and Stock Movement​

The product portfolio expansion is planned in phases. H2FY27 will introduce digital personal loans, rural home loans, and micro loans against property (LAP). Future plans include launching gold loans, two- and three-wheeler financing in FY28, followed by consumer durable financing and core rural individual loans during FY29–30.

Regarding market performance, the stock was up 1.72% over the last month. In the current calendar year, the stock is down 1.30%. However, it showed positive momentum in the past one year, having gained 4.05%, following impressive jumps of 67.78% and 40.25% over five and three years, respectively.