India Shelter Finance Corporation has reported a robust performance for the financial year ended March 31, 2026. The company achieved significant milestones, including surpassing Rs. 10,000 crore in AUM and crossing Rs. 500 crore in annual profitability. With a clear growth strategy, the company maintains a positive outlook, supported by strong asset quality and a commitment to expanding its branch network to reach a target of Rs. 30,000 crore AUM by 2030.
Financial Milestones and Growth
The company delivered a strong fiscal year, marked by a 29% year-on-year growth in AUM, reaching Rs. 11,044 crores. Profit After Tax (PAT) for the final quarter reached Rs. 138 crores, representing a 27% year-on-year growth. Return on Equity (ROE) consistently remained above 17% throughout the year, with the latest quarter reporting 17.6%.
Operational Highlights
During the fiscal year, the company expanded its footprint significantly, adding 41 new branches to cross the 300-branch milestone. Management reaffirmed its commitment to a steady expansion plan, targeting an addition of 40 to 45 branches annually. Furthermore, disbursements for the fourth quarter surpassed Rs. 1,000 crores for the first time, reflecting healthy demand across retail housing segments.
Asset Quality and Risk Management
The company showcased disciplined asset quality management, with Gross Stage-3 assets improving to 1.2% and Net Stage-3 assets to 0.9%. Credit costs for the year were maintained within the guidance range of 50 bps. Management highlighted a prudent approach to interest rate risk, successfully reducing the fixed-rate portfolio funded by variable-rate liabilities to approximately 8%, with plans for further reduction to 5% in the coming year.
Future Outlook
Looking ahead, India Shelter Finance Corporation has set a long-term goal to reach an AUM of Rs. 30,000 crores by 2030. The growth strategy focuses on maintaining spreads of over 6%, leveraging digital transformation to enhance productivity, and continuing to serve the affordable housing market in Tier 3 and Tier 4 regions. The management remains confident in achieving a 25% to 30% loan growth over the next three years, supported by strong institutional funding and a diversified borrowing profile.
Source: BSE
