India Shelter Finance Corporation Ltd

Financial Performance

• PAT for quarter: INR 143 crores; YoY 20%; QoQ 4%; ROE 17.5%.
• Gross AUM: INR 11,284 crores; YoY growth 24%.
• Disbursement in quarter: INR 1,046 crores; one-time timing shift.
• Bank clearance around INR 1,040 crores; ~37% higher than Q1FY26.
• NHB funding drawn: INR 172 crores in Jun-26 at 7.3%.
• Liquidity: >INR 800 crores; undrawn sanction >INR 1,500 crores.
• Disbursement yield 14.9%; portfolio yield 14.8%; finance cost 8.2%; marginal cost of funds 7.9%.
• Average borrowing tenure >8 years.

Operating Update

• Stage 3 assets 1.5%; early delinquencies; expect stabilization by end of Q2FY27; recoveries from Q3FY27.
• BT-out rate ~4%; collection efficiency ~97%.
• Home loan ~57% of AUM; GNPA ~1.48%; LAP GNPA ~1.52%; LAP LTV ~45%.

Guidance and Outlook

• FY27 guidance: Branch additions 40-45; loan growth 25-30%; spreads >6%; credit cost 40-50 bps.
• AUM growth guidance reaffirmed: 25-30% for FY27.
• Incremental yield has risen; overall PLR pass-through and cost of funds managed.

Q&A Highlights

• AI adoption: three tools; vernacular language support; partners not disclosed; call-center deployments.
• July disbursement ~INR 400 crores; trend supports >20% disbursement growth; AUM guidance intact.
• Credit quality: Stage 3 ~1.5%; collection ~97%; SARFAESI-driven improvements expected by Q3.
• Policy shift: switch to check clearance; interest income unchanged; timing impact explained.
• Liability mix: ~20% fixed-rate; ~33% repo/T-Bill-linked; remaining linked to MCLR/PLR.

Meeting Details

• Event: earnings conference call for Q ended June 30, 2026, hosted by India Shelter Finance.

Purpose

• Purpose: discuss unaudited quarterly results for quarter ended June 30, 2026.

Availability

• Recording available online; transcripts to be posted within five working days.

Business Overview

• Affordable home loans and LAP for Tier II/III borrowers.
• Pan-India network with 307 branches across 15 states.
• Disbursement booking shifted to realization in Q1FY27; one-time timing impact.
• ATS around Rs 10 Lakhs; focus on underserved customers.
• AI-driven underwriting and digital operations; 94% digital collections, 99% e-signing.
• FY27 growth guidance: 25-30% AUM growth.

Operational Highlights

• Gross AUM up 24% YoY to Rs 11,284 Cr.
• DA 17% of AUM; spreads 6.6%; COF 8.2%.
• Liquidity buffer Rs 2,423 Cr; comfortable liquidity position.
• Plan to open 40–45 branches in FY27.
• Digital: 94% collections; 99% e-signing.
• Geography: 307 branches across 15 states.
• One-time disbursement timing shift; P&L unaffected.

Financial Performance

• Q1FY27 net total income Rs 311.5 Cr; PAT Rs 143.0 Cr.
• Total income Q1FY27 Rs 432.4 Cr; interest income Rs 357.1 Cr.
• Opex to Gross AUM 4.0%; PPoP Rs 198.6 Cr.
• Credit cost 0.5%; ROA 5.8%; ROE 17.5%.
• NIM 12.7% on average total assets.
• Borrowings Rs 6,430.5 Cr; Loan assets Rs 8,688.9 Cr.
• Reserves Rs 3,298.1 Cr; total funds Rs 9,945.8 Cr.
• CRAR 59.1%; Book value per share Rs 308.
• ECL Stage 3 gross 138 Cr; Net Stage 3 102.5 Cr; PCR Stage 3 26%.

Capital Structure & Liquidity

• Cash & equivalents Rs 858 Cr; unavailed sanctions Rs 1,565 Cr.
• Total liquidity Rs 2,423 Cr as of Jun-26.
• Total borrowings Rs 6,430.5 Cr; equity Rs 54.4 Cr; reserves Rs 3,298.1 Cr.
• Total funds Rs 9,945.8 Cr.

Strategic Priorities & Outlook

• FY27 AUM growth guidance: 25-30%.
• Expand in Tier II/III; open 40-45 new branches.
• Diversify borrowings; improve COF; pursue co-lending.
• Leverage technology for scalability and risk analytics.
• Strengthen brand and sustainability; focus on Tier II/III markets.

Risks & Mitigation

• One-time disbursement timing shift; management states P&L is unaffected.
• Risks include macro growth, competition, and policy actions; forward-looking statements cover uncertainties.

Governance & Leadership

• Board comprises four independent directors; two women independent directors.
• MD & CEO: Rupinder Singh; CFO: Ashish Gupta; CRO: Sharad Pareek; CHRO: Nilay Goel.
• Major shareholders include WestBridge Capital 46.1%, Nexus 10.5%.
• ESOP pool accounts for 9% of shares.

Financial highlights

• Gross AUM rose 24% YoY to Rs 11,284 crore.
• PAT for Q1FY27: Rs 143 crore, up 20% YoY.
• RoA: 5.8%; RoE: 17.5% for Q1FY27.
• Cost of funds: 8.2%; spreads: 6.6%.
• Disbursements: Rs 641 crore; clearance disbursement Rs 1,046 crore.
• Net worth: Rs 3,352 crore; liquidity: Rs 2,423 crore.
• One-time accounting shift impacted Q1FY27 disbursement recognition.

Operational and governance updates

• Board approved unaudited results for quarter ended June 30, 2026.
• Gross Stage 3: 1.5%; Net Stage 3: 1.2%.

Outlook and commentary

• FY27 began on a steady note, per management.
• No explicit forward-looking guidance beyond current results.

Financial highlights

• Revenue from operations: ₹43,239.09 lakhs; QoQ up about 5.3%.
• Profit before tax: ₹18,517.74 lakhs.
• Tax expense: ₹4,216.03; current ₹3,853.61; deferred ₹362.42.
• Profit after tax: ₹14,301.71 lakhs.
• Basic EPS ₹13.15; diluted ₹13.06.
• Net worth ₹335,253.44 lakhs; debt-equity 1.92x; debt-to-assets 0.65.
• Gross NPA 1.55%; Net NPA 1.15%; provision coverage 25.72%.
• LCR 163.06%.
• ESOP: 96,106 equity shares allotted.
• Loans assigned: 3,480 accounts; ₹24,948.45 lakhs; MRR ₹3,986.65; residual tenor 10.06 years; LTV 48.22%.
• Independent Auditor's Review: unmodified opinion.
• Consolidated results not prepared; standalone results reported.
• Funds raised during quarter: Nil; utilization not applicable.

Regulatory disclosures

• Security cover on secured NCDs: 110% as on 30 June 2026.
• Statement of utilization: NIL funds raised during quarter.
• Deviation in use of proceeds: NIL; no deviation reported.

Business model & segments

• Housing finance firm; no separate operating segments reported under Ind AS 108.

NCD private placement details

• Non-convertible, secured, listed NCDs.
• Issuance: private placement.
• Total NCDs: 10,000; face value INR 1,00,000 each.
• Aggregate size: INR 100 crore.
• Green Shoe option: up to 2,500 NCDs (INR 25 crore).
• Listing: BSE.
• Tenure: 60 months from deemed date of allotment.
• Coupon: 8.10% p.a., fixed; quarterly payments.
• Security: first and exclusive hypothecation on standard receivables.
• Asset cover: minimum 1.10x.

AGM details

• AGM held on 16-07-2026 via VC/OAVM, 11:00–12:00 IST.
• Record date 09-07-2026; on-record shareholders: 56,611.
• Meeting duration: 1 hour.

Resolutions and outcomes

• Adoption of Audited Standalone and Consolidated Financial Statements; ordinary; passed.
• Re-appointment of Sumir Chadha (retiring by rotation); ordinary; passed.
• Final dividend of ₹10 per equity share; ordinary; passed.