Summary
Sammaan Capital Limited - Q3 FY 2026 Earnings Call Summary Wednesday, February 04, 2026 4:00 PM
Event Participants
Executives 1 Gagan Banga (MD & CEO)
Analysts 4 Amish Kanani, ASN Raju, Faizaan Joad, Meet Nitin Mewada
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Net Worth | ₹22,423 crores | +₹2,000 crores YoY; strengthened by previous capital raises. |
| Gross AUM | ₹44,000 crores | Reflects ongoing transition to asset-light model and legacy book rundown. |
| Gross NPA | 1.2% | Improved from 1.3% at FY25 end; credit quality remains stable. |
| Net NPA | 0.7% | Improved from 0.8% at FY25 end; supported by consistent collection efforts. |
| PAT (Quarter) | ₹314 crores | 4% increase YoY from ₹302 crores in Q3 FY25. |
| PAT (9-Month) | ₹957 crores | Significant turnaround from a consolidated loss of ₹2,132 crores in 9M FY25. |
| Gearing | 2.2x | Stable leverage; management targets long-term settle at 4.0x–4.5x. |
| Cost of Borrowing | ~9.0% | Incremental cost for Q3; management targets 270 bps reduction by March 2027 post-investment. |
Geographic & Segment Commentary
- Retail Mortgages: Focused on four core products across prime and affordable segments with average ticket sizes ranging from ₹15 lakhs to ₹75 lakhs. Asset quality remains high with 90+ DPD at only 0.54% across the ₹1.03 lakh crore total sold-down pool.
- Wholesale Lending: Managed primarily through the AIF platform, which has effectively deployed ₹6,200 crores in top 8 Indian cities. This segment is being transitioned to a pure credit platform for mid-market and wholesale assets.
- Geographic Expansion: Currently adding approximately 10 branches per quarter in Tier 3 and Tier 4 cities. Plans are in place to rapidly expand to 400-500 cities over the next two financial years following the completion of the IHC investment.
Company-Specific & Strategic Commentary
- Corporate Restructuring: Proposed merger of Sammaan Finserve into Sammaan Capital to consolidate lending and distribution while housing future non-mortgage financial services separately.
- IHC Investment: Awaiting final RBI and SEBI approvals for the preferential allotment to IHC; shareholder and CCI approvals have been secured.
- Asset-Light Strategy: Shift toward co-lending with banks and HFCs under new Jan 1 regulations; tech integration expects to drive 15-18% opex savings.
- Legacy Book Rundown: Achieved net collections of ₹5,000 crores so far this fiscal year with “bumper” recoveries expected in Q4 FY26 and Q1 FY27 from IBC-linked assets.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Credit Cost | 100 bps (Annualized) | Long-term target for current core mortgage product suite. |
| Leverage (Gearing) | 4.0x to 4.5x | Target range by 2030 as the company expands into a full-suite NBFC. |
| Dividend Payout | 30% to 40% | Anticipated long-term payout ratio starting approximately one year post-investment. |
| Cost of Funds | -270 bps reduction | Target reduction on stock of debt by March 2027, contingent on rating upgrades post-IHC entry. |
Risks & Constraints
| Risk | Context |
|---|---|
| Litigation (PIL) | Ongoing Supreme Court matter regarding past loans to corporate groups; management emphasizes company is a “victim” with zero current exposure to entities involved. |
| Regulatory Approval Timeline | Timing of IHC investment contingent on RBI/SEBI; further strategic expansion and branch rollouts are currently in a “calibrated” (slowed) mode pending these approvals. |
| Operational Transition | Shift to new co-lending framework may cause volume volatility; management expects business to normalize by May-June 2026 as tech integrations with banks stabilize. |
Q&A Highlights
Capital Allocation & ROE
- Question: How will the company improve ROE given the low leverage and high capitalization post-investment? (Amish Kanani)
- Answer: The asset-light model allows distribution of low-yield prime loans (8-10%) via bank partners while using the balance sheet for higher-yield products (up to 18-19%). Gearing will gradually move to 4x-4.5x by 2030, and the company plans a 30-40% dividend payout ratio once the IHC investment is integrated (Gagan Banga).
IHC Investment Status
- Question: Is there a specific reason or condition for the delay in RBI approval for the IHC preferential allotment? (Meet Nitin Mewada)
- Answer: The application is only three months old, while industry standards are 6-9 months. IHC and Sammaan are actively providing clarifications to regulators; management is optimistic about a speedy conclusion in the “last leg” of the process (Gagan Banga).
Asset Quality & Recoveries
- Question: What is the estimated timeline and quantum for recovering provisions from the legacy book? (ASN Raju)
- Answer: Management expects to cash recover approximately ₹4,500 crores over the next three years as the legacy book runs down below ₹10,000 crores. Current recoveries of ₹400-500 crores per quarter are being recycled into provisions to facilitate further resolutions (Gagan Banga).
Cost of Funds
- Question: What drove the uptick in interest expense this quarter and what is the outlook? (Faizaan Joad)
- Answer: The uptick was due to aggressive front-ended borrowing via dollar and domestic bonds at ~9%. Post-investment, the goal is to reduce the cost of the borrowing stock by 270 bps by March 2027 as the company’s credit profile improves (Gagan Banga).
Key Takeaway
Sammaan Capital reported a stable Q3 FY26 with a PAT of ₹314 crores and significant 9-month profit growth of ₹957 crores, marking a clean recovery from previous losses. The company is in a transitional phase, awaiting final regulatory approvals for a transformative investment from IHC, which will facilitate its evolution into a full-suite NBFC. Strategically, the firm continues to run down its legacy wholesale book—achieving ₹5,000 crores in collections this year—while maintaining a stable 1.2% Gross NPA ratio. Management is pivoting toward an asset-light co-lending model that leverages deep technological integration with banks to reduce opex by 15-18%. The forward outlook is centered on the successful entry of IHC as a promoter, which is expected to lower borrowing costs by 270 bps and enable aggressive branch expansion. While the historical PIL remains a point of stakeholder concern, management emphasizes they have no remaining financial exposure to the disputed loans and expects the IHC investment to close shortly.
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