Sundaram Home Finance delivered robust financial performance in the third quarter of 2025, reporting a 20% increase in net profit alongside strong growth across key business metrics. The company's focus on expanding its emerging business segment while strengthening core operations has yielded significant results.

Strong Q3 Financial Performance

The company's quarterly results demonstrate consistent growth momentum across multiple parameters:

Assets under management reached Rs 18,880 crore by December 31, 2025, marking an 18% increase from Rs 15,958 crore on the same date in 2024. This growth reflects the company's expanding customer base and successful business expansion strategies.

Emerging Business Segment Drives Growth

The Emerging Business segment has emerged as a significant growth catalyst for Sundaram Home Finance. Disbursements in this segment more than doubled to Rs 165 crore during the quarter, compared to Rs 62 crore in the third quarter of the previous financial year.

Nine-Month Performance Highlights

The company's performance for the nine months ending December 31, 2025, further reinforces its strong market position:

The EB segment disbursements tripled to Rs 394 crore during these nine months, highlighting the segment's accelerating contribution to overall business growth.

Strategic Expansion and Future Outlook

Managing Director D Lakshminarayanan emphasized the company's dual focus on strengthening core home finance operations while expanding the emerging business segment. The company opened 15 branches during the quarter as part of its expansion strategy.

Sundaram Home Finance has set ambitious targets for its emerging business segment, aiming to establish 100 branches and achieve Rs 500 crore in disbursements by year-end. The company sees significant untapped potential in smaller towns and plans to continue expanding its branch presence to capitalize on growth opportunities in these markets.

Sundaram Finance Limited (SFL) has made a significant strategic move in the financial services sector. The company's Board of Directors has granted in-principle approval for the acquisition of Capitalgate Investment Advisors Private Limited (CGIA) by its subsidiary, Sundaram Alternate Assets Limited (SAAL). This decision marks a notable expansion in SFL's portfolio of financial services.

Key Details of the Acquisition

The acquisition involves the following key aspects:

About Capitalgate Investment Advisors

CGIA, incorporated in 2017, specializes in credit research on listed fixed income securities. The company's clientele includes high-net-worth individuals (HNIs), corporate treasuries, pension funds, and insurance companies. These clients are either current investors in Portfolio Management Services (PMS) and Alternative Investment Funds (AIF) managed by Sundaram Alternates or potential investors.

Financial Performance of CGIA

CGIA's recent financial performance shows promising growth:

Strategic Rationale

The acquisition of CGIA aligns with Sundaram Finance's strategy to enhance its research capabilities and expand its offerings in the alternative investment space. CGIA is currently developing an AI engine capable of delivering real-time research to users, which could significantly benefit SAAL's fund business.

Regulatory Compliance

The transaction has been classified as a related party transaction and has received prior approval from the Audit Committee of Sundaram Finance Limited. This approval was necessary as the transaction value (₹35 crore) exceeds 10% of the standalone turnover of SAAL (₹12.37 crore for FY 2024-25).

Outlook

This acquisition represents a strategic move by Sundaram Finance to strengthen its position in the financial services sector, particularly in the areas of credit research and alternative investments. The integration of CGIA's expertise and its developing AI capabilities could potentially enhance SAAL's fund management capabilities and offer more value to its investors.

As the financial services landscape continues to evolve, such strategic acquisitions may become increasingly important for companies looking to stay competitive and offer comprehensive solutions to their clients.