SRGHFL reports Rs 8.47 cr standalone profit in Q1FY27
A 64.99% operating margin was partly absorbed by Rs 23.89 cr of interest expense, while management outlined an AUM target of Rs 1,300-1,500 cr.
Filed 05 Aug 2026, 13:52 IST · SRGHFL (SRGHFL)
Key takeaways
- SRGHFL reported standalone net profit of Rs 8.47 cr in Q1FY27 after interest expense of Rs 23.89 cr.
- Operating profit of Rs 35.06 cr translated into a 64.99% operating margin, while other income of Rs 0.08 cr did not materially support earnings.
- Management expects AUM to reach approximately Rs 1,300-1,500 cr by FY27, supported by targeted disbursements of about Rs 600 cr.
Interest expense absorbed much of operating profit
SRGHFL's standalone operating profit of Rs 35.06 cr was reduced by Rs 23.89 cr of interest expense and Rs 1.23 cr of depreciation before tax. Profit before tax was therefore Rs 10.01 cr, with tax of Rs 1.54 cr leaving net profit at Rs 8.47 cr. The earnings profile is consequently more sensitive to funding costs than to other income.
Operating margin was not supported by other income
The 64.99% operating margin shows that operating income carried the quarter, while other income of only Rs 0.08 cr was not a meaningful contributor to profit before tax. The reported tax rate was 15.37%, so the quarter's net profit was not driven by a large other-income contribution or an unusually low stated tax rate.
Management targets wider reach and larger AUM
Management said it expects AUM to reach approximately Rs 1,300-1,500 cr by FY27, with growth supported by targeted disbursements of about Rs 600 cr. The company said it plans to deepen its presence in Rajasthan and Gujarat while scaling Karnataka and Andhra Pradesh, after entering four new southern markets. The presentation also said the company is investing in analytics, early-warning systems and digital sourcing to improve underwriting and portfolio-quality monitoring.
Funding access is part of the stated growth plan
The presentation said a recent Acuité rating upgrade could improve access to A-rated bond issuances and potentially reduce borrowing costs. Management said lower funding costs could support NIM expansion and earnings growth over time. It described the proprietary credit-assessment methodology as the company's primary competitive moat.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹54 cr |
| Other income | ₹0 cr |
| Expenses | ₹19 cr |
| Operating profit | ₹35 cr |
| Operating margin (%) | 64.99% |
| Interest | ₹24 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹10 cr |
| Tax | ₹2 cr |
| Net profit | ₹8 cr |
| EPS (₹) | ₹5.39 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Management expects AUM to reach approximately INR 1,300-1,500 crore by FY27.
- Growth is expected to be supported by targeted disbursements of approximately INR 600 crore.
- Industry estimates indicate 20-21% growth for the affordable housing finance sector through FY27.
- Lower funding costs could support NIM expansion and enhance earnings growth over time.
Expansion
- The company plans to deepen its presence in Rajasthan and Gujarat while scaling operations in Karnataka and Andhra Pradesh.
- The company has entered four new southern markets to pursue underserved rural housing finance opportunities.
New initiatives
- The company is investing in advanced analytics, early-warning systems and digital sourcing capabilities.
- The company is developing a scalable credit model using demographic segmentation and location-based risk intelligence.
- The company is leveraging technology to improve underwriting efficiency and sustain portfolio quality.
- An Acuité rating upgrade enhances access to A-rated bond issuances, potentially reducing borrowing costs.
Competition
- The company describes its proprietary credit assessment methodology as its primary competitive moat.
What to watch
- AUM progress toward management's Rs 1,300-1,500 cr FY27 expectation.
- Disbursements against the stated target of approximately Rs 600 cr.
- Whether operating margin holds above 64.99% as interest expense is tracked against Rs 23.89 cr.