Sammaan Capital Limited provided updates following its Q3 FY’26 earnings call on February 4, 2026. Key discussions centered on the proposed merger of subsidiary Sammaan Finserve into Sammaan Capital, which is seen as the next logical step to offer a full suite of mortgage-backed loans. Management confirmed Net Worth growth to approximately INR22,423 crores and stable asset quality, with Gross NPA at 1.2%.
Q3 FY’26 Performance Snapshot
Sammaan Capital reported a robust financial quarter, with Profit After Tax (PAT) of INR314 crores, compared to INR302 crores in the previous corresponding quarter. For the 9-month period, the company achieved a PAT of approximately INR957 crores, marking a significant turnaround from the prior year’s consolidated loss. Gearing remained stable at 2.2x.
Year-on-year, the total Assets Under Management (AUM) grew to about INR44,000 crores. Asset quality remained strong, with Gross NPA reducing slightly from 1.3% (FY’25 end) to 1.2%, and Net NPA standing at 0.7%.
Strategic Consolidation and Merger Update
The major development highlighted was the proposed merger of its subsidiary, Sammaan Finserve, into Sammaan Capital. This consolidation aims to enable the parent company to offer a full suite of mortgage-backed loans. The structure envisions Sammaan Capital acting as the primary lending and holding entity, while other financial services may prospectively be housed under Sammaan Finserve.
Regarding the preferential allotment to IHC, approvals have been received from stock exchanges, shareholders, and the CCI. The company is currently awaiting RBI and SEBI approvals, anticipating a 15-day window post-approval for share allotment.
Asset-Light Model and Future Leverage
Management reaffirmed its commitment to the asset-light strategy, emphasizing the co-lending framework, which now covers all loan types and is integrated with various banks. The goal is to scale business volumes back to original levels by May or June of the current year.
In response to investor queries about leverage and Return on Equity (RoE), management indicated that while the current leverage is low, the long-term target is to settle leverage in the range of 4x to 4.5x by around 2030 as the cost of funds reduces. The company also expressed readiness to adopt a 30% to 40% dividend payout ratio over the longer term, post-investment completion.
Legacy Book and Recoveries
The rundown of the legacy loan book remains a priority. Net collections for the year totaled approximately INR5,000 crores while maintaining asset quality. Management is optimistic about Q4 collections, citing major progress in recoveries under the IBC front.
Concerning total provisions, the company expects to recover, give or take, INR4,500 crores from write-offs and provisions over time. The strategy involves using released provisions to facilitate recovery, expecting to recover INR400 crores to INR500 crores per quarter from the legacy book, which is targeted to run down below INR10,000 crores within the next 3 years.
Cost of Borrowing Outlook
The uptick in Q3 interest expense was attributed to aggressive borrowings, including a large dollar bond issuance, with the current borrowing rate around 9%. Management expects the overall cost of funds to decrease by about 270 basis points over the next 9 to 12 months, potentially dropping below 8% shortly after the investment concludes.
Source: BSE
