SRG Housing Finance Limited reported a net profit of ₹8.47 crore for the quarter ended June 30, 2026 (Q1FY26), marking a 25% year-on-year increase from ₹6.78 crore in Q1FY25. Total revenue from operations rose to ₹53.95 crore, up from ₹42.63 crore in the prior year period, supported by stronger interest income and controlled impairment losses.

The Board of Directors approved the unaudited financial results on August 05, 2026, following a limited review by statutory auditors Valawat & Associates. The filing was submitted to the National Stock Exchange and BSE pursuant to SEBI LODR Regulations 30, 51, and 52. The company also confirmed compliance with debt covenants, maintaining a security cover of 110% for its listed non-convertible debentures as required under Regulation 54 of the SEBI LODR Regulations.

Financial Performance

Interest income, the primary revenue driver, increased to ₹50.93 crore in Q1FY26 from ₹37.13 crore in Q1FY25. However, fees and commission income declined sharply to ₹0.97 crore from ₹1.90 crore in the corresponding quarter of the previous year. Other operating income fell to ₹1.72 crore from ₹2.54 crore.

Total expenses were contained at ₹44.01 crore, down from ₹45.74 crore in the preceding quarter and significantly lower than ₹34.85 crore in Q1FY25. Finance costs rose to ₹23.89 crore from ₹16.75 crore year-on-year, reflecting expanded borrowing or loan book growth. Employee benefit expenses increased to ₹14.06 crore from ₹11.59 crore in Q1FY25. Notably, impairment of financial instruments (expected credit loss) dropped substantially to ₹0.09 crore from ₹0.59 crore in the same period last year, indicating improved asset quality or provisioning trends.

Key Ratios and Capital Structure

The company’s debt-equity ratio stood at 2.92, while total debts accounted for 73.18% of total assets. The interest service coverage ratio was 1.42. Net worth remained stable at ₹305.54 crore. Paid-up equity capital increased slightly to ₹15.71 crore from ₹15.70 crore in the previous quarter, following the allotment of 4,400 equity shares to employees under ESOPs at ₹200 per share during the quarter.

What the Numbers Show

The divergence between rising interest income and falling fee income suggests a shift in revenue mix towards core lending activities rather than ancillary services. The significant reduction in impairment losses—from ₹58.66 lakh in Q1FY25 to ₹9.33 lakh in Q1FY26—contributed materially to the bottom-line growth, highlighting better credit risk management or a cleaner loan book compared to the prior year. Despite higher finance costs, the company maintained profitability, with a net profit margin of 15.68%.

SRG Housing Finance paid interest and executed a partial redemption on its secured Non-Convertible Debentures (NCDs) on July 29, 2026. The company disbursed Rs 39,60,377.49 as interest, after deducting tax at source, while redeeming a principal amount of Rs 75,75,757.57. These transactions bring the outstanding NCD balance to Rs 41,66,66,666.67. The timely payments confirm the firm’s adherence to its monthly repayment schedule for the instrument carrying ISIN INE559N07058.

The disclosures were made in compliance with Regulations 30 and 57(1) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. Divya Kothari, Company Secretary, signed the intimation submitted to BSE Limited. The filing references SEBI Master Circular Ref. No. SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/48 dated May 21, 2024.

Interest Payment Details

The interest payment was due on July 29, 2026, with a record date of July 14, 2026. The gross interest amount payable was Rs 40,16,936.49. After withholding tax, the net amount credited to investors was Rs 39,60,377.49. This follows the previous interest payment made on June 29, 2026. There were no delays or changes in the payment frequency.

Redemption Status

The company undertook a partial redemption of the NCDs on a pro-rata basis. The redemption was categorized under "Others - Monthly Redemption." The face value of the redeemed debentures amounted to Rs 75,75,757.57. Following this reduction, the total outstanding nominal value of the NCDs stands at Rs 41,66,66,666.67.

Instrument Overview

The NCDs are rated, secured, listed, senior, transferable, redeemable, and fully paid-up. Each debenture has a face value of Rs 1,00,000. The initial issue size comprised 5,000 debentures with an aggregate nominal value of Rs 50,00,00,000, including a green shoe option of 1,500 debentures valued at Rs 15,00,00,000. Interest is paid monthly, as indicated in the filing.

What the Numbers Show

The consistent monthly redemption pattern suggests an amortizing debt structure rather than a bullet repayment model. The reduction in outstanding liability from the initial Rs 50 crore issue size to approximately Rs 41.67 crore indicates significant progress in deleveraging this specific tranche. The absence of any delay in payment or change in frequency underscores stable cash flow management for these obligations.