Sammaan Capital Limited (formerly known as Indiabulls Housing Finance Limited) has reported robust financial results for the first quarter of fiscal year 2026, along with several strategic initiatives aimed at strengthening its market position and operational efficiency.

Financial Highlights

Sammaan Capital's Q1 FY '26 performance showcased significant growth and stability:

The company's Net Worth increased from INR 21,822.00 crore at the end of FY '25.

The company's asset quality remained robust with gross Non-Performing Assets (NPAs) at 1.50% and net NPAs at 0.80%.

Strategic Initiatives

Sammaan Capital announced several key strategic moves:

1. Digital Transformation: Implementation of an End-to-End Online Loan Fulfillment system, enhancing efficiency in loan processing and customer onboarding.

2. Expansion of Co-lending Partnerships: Collaboration with 24 banks and financial institutions, positioning itself as one of the largest loan originators in the country.

3. Sammaan Finserve Restructuring: Plans to bring in a strategic equity partner for its subsidiary, Sammaan Finserve, within the next 9 months.

4. Organizational Changes: Appointment of a Deputy CEO within the next 3 weeks, along with a strategic reorganization of top management.

5. Asset-Light Strategy: Continued focus on an asset-light model, leveraging co-lending partnerships and loan sell-downs to scale its retail origination platform efficiently.

Future Outlook

Gagan Banga, Vice Chairman, Managing Director, and CEO of Sammaan Capital, expressed optimism about the company's future:

"We are confident that our strategic initiatives, including the digital transformation and expansion of co-lending partnerships, will drive growth and enhance our market presence. Our focus remains on maintaining robust asset quality while expanding our AUM through our asset-light model."

The company aims to achieve low-teens Return on Equity (ROE) by fiscal year 2027, maintaining a moderate gearing ratio of 2-2.5x.

Legacy Loan Book Management

Sammaan Capital continues to efficiently manage its legacy loan book:

• Projected collections of INR 6,000.00-7,000.00 crore in the first half of FY '26
• Expected rundown of INR 8,000.00 crore for the full year
• Legacy AUM reduced to approximately INR 23,000.00 crore

The company remains committed to resolving the legacy book while focusing on growth in its retail business.

With these strategic moves and strong financial performance, Sammaan Capital is well-positioned to capitalize on market opportunities and drive sustainable growth in the coming quarters.

Sammaan Capital Limited (formerly Indiabulls Housing Finance Limited) has reported a consolidated net profit of ₹334.30 crore for the first quarter, marking a slight increase from ₹326.76 crore in the same period last year. The company's financial performance shows resilience amid changing market conditions.

Key Financial Highlights

Strengthening Capital Position

Sammaan Capital's balance sheet remains robust with a net worth of ₹22,106.00 crore as of June 30. The company maintains a capital adequacy ratio of 29.17%, well above regulatory requirements, indicating strong solvency and capacity for future growth.

Asset Quality and Loan Book

The company's total Assets Under Management (AUM) stood at ₹62,378.00 crore, with the growth AUM at ₹38,897.00 crore. The legacy loan book continued its planned reduction, decreasing to ₹23,481.00 crore from ₹24,894.00 crore in the previous quarter.

Debenture Issuance Enhances Liquidity

Sammaan Capital successfully allotted 9,000 secured, rated, listed, taxable, redeemable non-convertible debentures (NCDs) worth ₹90.00 crore through private placement. These NCDs, each with a face value of ₹1.00 lakh, carry a 9.60% annual coupon rate and a 10-year tenor, maturing on August 14, 2035.

Key features of the NCD issuance include:

• Annual interest payments starting August 14, 2026
• Secured by hypothecation of the company's financial and non-financial assets
• Minimum security cover of 1.1 times the principal amount and interest
• Proposed listing on NSE and BSE

Monitoring Agency Reports for Rights Issue and QIP

Sammaan Capital Limited has submitted monitoring agency reports detailing the utilization of proceeds from its Rights Issue and Qualified Institutional Placement (QIP).

QIP Proceeds Utilization

• Total raised: ₹12,648.90 crore
• Allocation:
  • ₹9,593.90 crore for augmenting capital base (fully utilized)
  • ₹3,055.00 crore for general corporate purposes
• Remaining unutilized: ₹15.94 crore from general corporate purposes

Rights Issue Proceeds Utilization

• Total raised: ₹36,134.68 crore
• Allocation:
  • ₹27,341.10 crore for capital base augmentation
  • ₹8,793.58 crore for general corporate purposes
• No utilization occurred during the reported quarter
• Remaining unutilized:
  • ₹232.29 crore for capital base augmentation
  • ₹71.36 crore for general corporate purposes

CRISIL Ratings Limited, serving as the monitoring agency, reported no deviations from stated objectives for both issues.

Management Commentary

Gagan Banga, Vice-Chairman, Managing Director & CEO of Sammaan Capital, stated, "Our Q1 results demonstrate the resilience of our business model and the success of our strategic initiatives. The recent NCD issuance further strengthens our liquidity position, allowing us to capitalize on growth opportunities in the mortgage finance sector."

Future Outlook

With a strong capital position, improving asset quality, and enhanced liquidity through recent debt issuances and capital raising activities, Sammaan Capital is well-positioned to navigate the evolving financial landscape and pursue growth opportunities in the coming quarters.