SRG Housing Finance Limited — PPTs, 14-08-2025: Investor Presentation

**Financial Highlights:**

SRG Housing Finance (SRGHFL) demonstrated strong Q1FY26 performance. Assets Under Management (AUM) expanded to Rs 795.39 Cr. New loan approvals surged 74% year-over-year to Rs 81.15 Cr, with disbursements rising 79% to Rs 80.00 Cr. Profit After Tax (PAT) increased to Rs 6.78 Cr. Asset quality improved, as Gross NPA stood at 1.85% and Net NPA at 0.62%. The company reported a healthy spread of 9.08% and robust capital adequacy (Tier I at 46.92%). Book value per share is Rs 172.57.

**Strategic Initiatives & Growth Drivers:**

SRGHFL focuses on rural housing finance, targeting new-to-credit, underserved, and unorganized populations. They emphasize small ticket loans (average Rs 10.87 Lakh) with low Loan-to-Value (average 45.5%). Operating with 93 branches across 7 states, 92% of their loan book is rural. The "SRG SRAJAN" digital platform streamlines loan processing, management, and collection, enhancing operational efficiency.

**Business Developments:**

The company bolstered its financial strength through recent capital raises, securing Rs 49.93 Cr via preferential equity issue in March 2025 and Rs 25.94 Cr in July 2024, in addition to Rs 10 Cr from warrant conversions. These infusions are aimed at supporting their expansion strategy in niche markets.

**Market Position & Competitive Advantage:**

SRGHFL differentiates itself through deep rural market penetration, a localized approach, and tailored product offerings for customers without formal income documentation. Their unique risk management framework, efficient processing, and high rate of digital EMI collections underscore a resilient business model and strong asset quality management.

**Investor Implications:**

The consistent AUM growth, improving asset quality metrics, and strategic focus on the underserved rural segment indicate positive growth potential. Recent capital inflows provide a solid foundation for continued market expansion and leadership within their specialized housing finance niche.