SRG Housing Finance Limited has announced strong financial results for Q3FY26, with the Board of Directors approving unaudited financial results for the quarter and nine months ended December 31, 2025, at their meeting held on February 6, 2026. The company submitted its press release to both NSE (Scrip Symbol: SRGHFL) and BSE (Scrip Code: 534680) under Regulation 30 of SEBI regulations.

Strong Financial Performance in Q3FY26

The company delivered impressive financial metrics for Q3FY26, with net profit after tax surging 43.03% to ₹8.21 crore compared to ₹5.74 crore in Q3FY25. Total income grew by 27.33% to ₹51.25 crore, while net interest income increased substantially by 40.87% to ₹24.23 crore. Profit before tax rose 44.91% to ₹10.39 crore during the quarter.

Asset Growth and Quality Metrics

SRG Housing Finance achieved significant asset growth with Gross Loan Assets (AUM) reaching ₹943.93 crore, marking a robust 33.42% year-on-year increase from ₹707.47 crore in Q3FY25. The company is approaching its guided target of ₹1,000 crore AUM. Loan disbursements for the quarter stood at ₹107.34 crore, representing an 18.02% increase from ₹90.95 crore in the corresponding previous quarter.

Asset quality remained strong with Gross NPA improving to 1.83% from 1.98% in Q3FY25, while Net NPA was maintained at 0.68%. The company's Net Interest Margin (NIM) on Gross Average AUM stood at 2.68% compared to 2.53% in the previous year.

Operational Efficiency and Capital Strength

The company demonstrated improved operational efficiency with the cost-to-income ratio decreasing to 64.07% in Q3FY26 from 65.40% in Q3FY25. Return on Average Equity (ROAE) improved to 2.90% from 2.80% in the previous year. EBITDA increased to ₹32.03 crore compared to ₹25.39 crore in Q3FY25.

Capital adequacy remained robust with the Capital Adequacy Ratio at 38.99% as of December 31, 2025, comprising 38.60% Tier I capital and 0.39% Tier II capital. Total equity grew by 38.47% to ₹287.80 crore, while book value per share increased by 21.79% to ₹183.31. Basic EPS rose 25.72% to ₹5.23.

Portfolio Composition and Market Focus

The lending portfolio maintained its rural focus with 93.87% of the book in rural markets and 74.60% lending to self-employed segments. Housing loans constituted 70.77% of the portfolio at ₹668.02 crore, while loan against property accounted for 29.23% at ₹275.91 crore. The average ticket size increased to ₹13 lakhs with an average tenure of approximately 10 years.

Management Commentary and Future Outlook

Managing Director Vinod K. Jain commented on the company's performance, stating that SRG Housing Finance is close to achieving its ₹1,000 crore AUM target with current AUM at ₹944 crore as of December 31, 2025. He highlighted the company's ability to maintain strong asset quality while scaling operations, with new approvals reaching ₹130 crore in Q3FY26.

The company operates through 95 branches across 6 states and 1 union territory, including Rajasthan (34 branches), Gujarat (25), Madhya Pradesh (13), Maharashtra (13), Karnataka (6), Andhra Pradesh (3), and Delhi (1). Outstanding borrowings increased to ₹799.28 crore from ₹566.06 crore, with funding sourced from banks including NHB (50.10%), financial institutions (40.87%), and NCDs (9.03%).

SRG Housing Finance Limited has successfully completed its monthly interest payment and partial redemption obligations on Non-Convertible Debentures (NCDs), demonstrating continued adherence to its debt servicing commitments. The company made the payments on January 23, 2026, one day ahead of the scheduled due date to accommodate the non-working day convention.

Interest Payment Details

The company executed its monthly interest payment obligations with precision, maintaining its regular payment schedule established under the NCD framework.

The difference between the due amount and actual payment reflects the deduction of Tax Deducted at Source (TDS) as per regulatory requirements. The last interest payment was made on December 24, 2025, maintaining the monthly payment cycle.

NCD Issue Structure

The Non-Convertible Debentures represent a significant component of the company's funding structure, designed with specific features to meet both issuer and investor requirements.

The debentures are characterized as rated, secured, listed, senior, transferable, redeemable, and fully paid-up instruments, providing multiple layers of investor protection and market accessibility.

Partial Redemption Transaction

The company executed a partial redemption of the principal amount as part of its structured repayment schedule, reducing the overall outstanding liability.

The partial redemption follows a systematic approach based on face value redemption distributed on a pro-rata basis among debenture holders. This monthly redemption structure ensures gradual reduction of the principal outstanding while maintaining regular cash flow management.

Regulatory Compliance

The transaction demonstrates full compliance with Securities and Exchange Board of India (SEBI) regulations, specifically adhering to Regulations 30 and 57(1) of the Listing Obligations and Disclosure Requirements. The company has provided comprehensive details as mandated under SEBI Master Circular Ref. No. SEBI/HO/DDHS/DDHS-PoD-1/P/CIR/2024/48 dated May 21, 2024.

The early payment execution, completed one day before the due date, reflects proactive management practices to ensure uninterrupted debt servicing despite non-working day constraints. This approach maintains investor confidence and regulatory compliance standards.