Sammaan Capital returns to profit as operating margin reaches 99.91%
The QoQ turnaround followed a 99.96% fall in expenses and a 20.45% decline in interest cost, but profit remained below last year's level.
Filed 13 Aug 2026, 17:06 IST · after market close · Sammaan Capital Ltd (SAMMAANCAP)
Key takeaways
- Consolidated operating profit fell only -1.53% YoY despite revenue declining -31.18%, as expenses fell -99.80%.
- Net profit declined -27.22% YoY because interest expense rose +11.63%, although the lower tax rate cushioned the fall.
- Operating margin rebounded 239.67 percentage points QoQ to 99.91%, placing it 37.56 percentage points above the 63-peer sector median.
Price around the results
Q1 reverses the Q4FY26 loss
Sammaan Capital reported consolidated net profit of Rs 243.30 cr in Q1FY27 after the loss in Q4FY26. The sequential turnaround was driven by revenue growth of +21.67%, a 99.96% decline in expenses and a 20.45% fall in interest cost. Year on year, however, revenue fell -31.18% and net profit declined -27.22%.
Higher interest cost still weighed on earnings
Interest expense rose +11.63% YoY even as expenses fell -99.80%, limiting the conversion of operating profit into pre-tax profit. The tax rate fell 3.22 percentage points YoY, which cushioned net profit but did not prevent a 30.36% decline in pre-tax profit. Other income contributed 9.47% of pre-tax profit, making it a meaningful but not dominant part of earnings quality.
Margin rebounds above the peer median
Operating margin rose 239.67 percentage points QoQ from the Q4FY26 loss position, and was 30.08 percentage points above Q1FY26. The quarterly sequence was volatile: margin moved from 71.41% in Q4FY25 to 87.95% in Q3FY26, then -139.76% in Q4FY26 before recovering to 99.91%. It was 37.56 percentage points above the 62.35% median for 63 Financial Services peers that had reported.
Management outlines a retail-led expansion path
Management said the company disbursed Rs 3,875 cr across five products to about 12,000 new customers in Q1FY27. The company told analysts that retail-led expansion in H2FY27 will focus on digital personal loans, micro-LAP and rural home loans, while Gold, 2W/3W and retail e-commerce lending are planned for FY28. Management also said it is targeting an AAA rating by FY28 and will pursue both organic and inorganic growth.
No immediate market reaction after the filing
The results were filed after market close, so there was no post-results stock reaction at the time of this note. Across the eight recent result reactions, the stock rose four times and fell four times, with a median absolute move of 2.97%, indicating a mixed historical response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,652 cr | ₹1,358 cr | +21.67% | -31.18% |
| Other income | ₹31 cr | ₹-6,496 cr | — | +239.34% |
| Expenses | ₹1 cr | ₹3,255 cr | -99.96% | -99.80% |
| Operating profit | ₹1,651 cr | ₹-1,898 cr | — | -1.53% |
| Operating margin (%) | 99.91% | -139.76% | — | — |
| Interest | ₹1,335 cr | ₹1,679 cr | -20.45% | +11.63% |
| Depreciation | ₹20 cr | ₹25 cr | -19.69% | -4.37% |
| Profit before tax | ₹326 cr | ₹-10,097 cr | — | -30.36% |
| Tax | ₹83 cr | ₹-1,995 cr | — | -38.19% |
| Net profit | ₹243 cr | ₹-8,101 cr | — | -27.22% |
| EPS (₹) | ₹2.13 | ₹-99.10 | — | -48.05% |
Operating margin of 99.91% compares with a Financial Services sector median of 62.35% across 63 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company disbursed ₹3,875 crore across five products to about 12,000 new customers in Q1FY27.
Guidance & outlook
- The company targets an AAA rating by FY28.
- Retail-anchored expansion is planned for H2FY27 through digital personal, micro-LAP and rural home loans.
- The company plans to add Gold, 2W/3W and retail e-commerce lending in FY28, then scale core rural individual loans in FY29-30.
Expansion
- The company will pursue both organic and inorganic growth opportunities.
- The branch expansion roadmap starts from 220 branches and 23 master services centers across 20 states.
- Regular non-Gold branches are planned to increase from 217 in FY26 to about 605 by FY30.
- Gold loan branches are planned to reach about 1,000 by FY30 from none in FY26 and FY27.
New products
- The company plans phased expansion into Gold, 2W/3W, retail e-commerce and core rural individual lending.
New initiatives
- The company completed USD 63 million of bond buybacks to reduce costs and proactively manage assets and liabilities.
- All retail and MSME products are currently available on the company app.
- The company is hiring fresh talent and appointing experienced senior management to build capacity for growth.
Competition
- The company was the third-highest bond issuer among AA+ peers during April-August 2026.
What to watch
- Whether operating margin remains above 99.91% after the Q1FY27 rebound.
- Whether interest expense stays below Rs 1,335.26 cr as revenue momentum is assessed.
- Whether quarterly disbursements build on Rs 3,875 cr across five products.