Sahara Housing Fina Corporation reported a net profit of ₹16.60 lakh for the quarter ended June 30, 2026 (Q1FY27), marking a 22% decline from the ₹21.26 lakh profit recorded in the corresponding quarter of the previous year. The contraction in profitability was driven by a decrease in interest income, which fell to ₹164.75 lakh from ₹174.05 lakh year-on-year. Despite the top-line pressure, the company managed to reduce total expenses to ₹148.49 lakh from ₹150.17 lakh, primarily due to lower finance costs and an impairment reversal.

The Board of Directors, chaired by Sadhan Sarkar, approved the unaudited standalone financial results on August 12, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The results were reviewed by B.M. Chaturvedi & Co., the independent auditor, who issued a limited review report stating that nothing came to their attention to suggest material misstatement. The financials were prepared in accordance with Ind AS 34 and other generally accepted accounting principles in India.

Financial Performance Overview

Total revenue from operations stood at ₹165.48 lakh, down from ₹174.85 lakh in Q1FY26. Interest income, the primary revenue driver, decreased significantly. Other operating revenue also saw a marginal decline to ₹0.73 lakh from ₹0.80 lakh. However, the impact of lower revenue was partially offset by substantial savings in expenses, particularly in finance costs which dropped to ₹27.53 lakh from ₹40.34 lakh.

Employee benefit expenses remained relatively stable at ₹69.79 lakh, slightly down from ₹71.31 lakh. Depreciation and amortization increased to ₹10.26 lakh from ₹9.34 lakh. Other expenses rose marginally to ₹46.02 lakh from ₹45.19 lakh.

What the Numbers Show

The divergence between revenue decline and expense reduction highlights a shift in the company’s cost dynamics. While top-line pressure persisted with interest income falling nearly 5%, the 32% drop in finance costs suggests improved debt management or refinancing benefits. Additionally, the company recorded an impairment reversal of ₹5.11 lakh, compared to a provision of ₹16.01 lakh in Q1FY26, indicating potential recoveries in previously stressed assets. However, these operational efficiencies were insufficient to fully offset the revenue loss, resulting in a 22% decline in net profit. The basic earnings per share (EPS) also fell to ₹0.24 from ₹0.30 in the previous year's quarter.

Sahara Housing Fina Corporation has reduced the outstanding principal on its privately placed Unlisted Secured Non-Convertible Debentures (NCDs) to Rs 12 crore. The reduction follows the timely payment of partial redemptions totaling Rs 18 crore, executed in two equal installments as per the terms of the Information Memorandum (IM). The company continues to service the debt by paying interest at 7% per annum annually.

Debt Repayment Details

The company originally placed 30 NCDs at Rs 1 crore each, aggregating to Rs 30 crore, on 31 March 2017. These debentures were placed with a single entity and are monitored by M/s Catalyst Trusteeship Limited. No fresh Non-Convertible Securities have been issued by the company subsequent to this initial placement.

The outstanding balance was reduced through two redemptions of 30% each, amounting to Rs 9 crore per installment. The first payment of Rs 9 crore was made on 31 March 2025, and the second payment of Rs 9 crore was made on 31 March 2026. Consequently, 12 NCDs remain outstanding.

Financial Status of NCDs

The following table summarizes the status of the debentures:

The company has confirmed that interest payments have been made within the due date, specifically by 31 March each year, since the issue of the NCDs. These payments have been reported to the Debenture Trustee. The disclosure was submitted to the Bombay Stock Exchange in compliance with Regulation 57(5) of SEBI (Listing Obligations and Disclosure Requirements), Regulations, 2015 for the quarter ended 30 June 2026.