SRG Housing Finance Limited is a specialized housing finance company focused on providing accessible credit to the underserved and unorganized population, primarily in rural and semi-urban India. The company's core mission is to solve the housing loan problem for individuals who are often new-to-credit and operate outside the formal salaried economy. Its business model is built on a foundation of prudent risk management, characterized by small-ticket loans with an average ticket size of less than Rs. 12 lakhs and a low loan-to-value (LTV) ratio, typically under 50%. This approach targets a mature demographic, with 62% of customers aged between 35 and 53, who have demonstrable cash flows and an intent to repay. A key social and risk-mitigating aspect of their model is the inclusion of women as co-borrowers in over 95% of their loan cases, which fosters women's empowerment and strengthens loan accountability.

Established in 1999, SRG Housing Finance has a significant operational history, becoming the first company in Rajasthan to receive a license from the National Housing Bank (NHB) in 2002. Its growth trajectory includes listing on the BSE SME platform in 2012, migrating to the BSE Main Board in 2015, and subsequently listing on the National Stock Exchange (NSE) in 2023. The company has methodically expanded its footprint to 95 branches across 7 states and union territories, serving over 20,000 customers. Leadership is a mix of seasoned experience and dynamic youth, with Founder and Managing Director Vinod Kumar Jain providing over 25 years of guidance, complemented by CEO Archis Jain. The broader management team brings extensive experience from established financial institutions such as SBI, AU Small Finance Bank, ICICI Bank, and Muthoot Group, ensuring robust practices in compliance, risk, operations, and technology. Through its business process reengineering project, "SRG SRAJAN," the company is leveraging technology to digitize its entire loan lifecycle, from origination to collection, to enhance efficiency and control.

Official Website: http://www.srghousing.com/

• Q3 FY26 Performance: For the quarter ending December 31, 2025, the company reported a Total Income of Rs. 51.25 crore, a significant increase from Rs. 40.25 crore in the same quarter of the previous year (Q3 FY25). Net Interest Income (NII) grew to Rs. 24.23 crore from Rs. 17.20 crore YoY. Profit After Tax (PAT) stood at Rs. 8.21 crore, marking a 43% increase from Rs. 5.74 crore in Q3 FY25.

• 9M FY26 Performance: For the nine months ending December 31, 2025, Total Income reached Rs. 142.39 crore, up from Rs. 111.07 crore in the corresponding period of the previous year. PAT for the nine-month period was Rs. 23.24 crore, a 27.7% increase compared to Rs. 18.20 crore in 9M FY25. The PAT for 9M FY26 has already surpassed the full-year PAT of any previous fiscal year.

• Asset Quality: As of Q3 FY26, the Gross NPA (GNPA) ratio was 1.83%, showing an improvement from 1.98% in Q3 FY25. The Net NPA (NNPA) ratio was 0.68%, a slight increase from 0.61% in the prior year's quarter. In absolute terms, Gross NPAs stood at Rs. 17.27 crore.

• Return Ratios: The Return on Average Assets (RoAA) for Q3 FY26 was 2.90%.

• Capital Adequacy: The company maintains a very strong capital position. As of Q3 FY26, the Tier I capital adequacy ratio was 38.60%, indicating a robust capital base to support future growth and absorb potential shocks.

• Liquidity and Funding: The company has a total liquidity position of Rs. 148.93 crore, comprising cash, investments, unutilized credit lines, and undrawn sanctions. Its borrowing is diversified, with 50% from Banks & NHB, 41% from other Financial Institutions, and 9% through Non-Convertible Debentures (NCDs). During Q3 FY26, the company issued NCDs amounting to Rs. 26 crores.

The company exhibits strong growth in both revenue and profitability, backed by stable asset quality and an exceptionally high capital adequacy ratio, ensuring a solid financial foundation.

• Niche Target Segment: The company's primary focus is on the rural (94% of the loan book) and non-salaried (79% of the loan book) segments. This includes customers like milkmen, small shopkeepers, and laborers who are often new-to-credit and overlooked by traditional lenders.

• Conservative Lending Model: A core element of its strategy is maintaining a low-risk profile through small average ticket sizes (under Rs. 12 lakhs) and a low average Loan-to-Value (LTV) ratio of 49.38%. This ensures that loans are well-collateralized and manageable for the borrower.

• Deep Rural Penetration: SRG utilizes a Hub and Spoke model to extend its reach deep into rural areas, operating within a 50 km radius from hub branches and 35 km from spoke branches. This localized approach allows for better understanding and servicing of the target market.

• Technology-Driven Operations ("SRG SRAJAN"): The company has implemented a comprehensive digital ecosystem covering the entire loan process. This includes a Loan Origination System (LOS) for mobile-based applications and credit decisioning, a Loan Management System (LMS) for collections and servicing, and a dedicated Collection module with features like geo-location tracking and digital receipts.

• Customized Risk Management: SRG employs a unique risk management framework with a location-based collateral and credit policy. This allows the company to make credit decisions based on the specific merits of a profile rather than relying solely on traditional credit scores.

SRG's distinctiveness stems from its deep focus on the underserved rural market, which it navigates with a conservative lending philosophy and a robust, technology-enabled operational framework.

• Assets Under Management (AUM): The company has demonstrated exceptional AUM growth, expanding from Rs. 81.83 crore in FY17 to Rs. 759.36 crore in FY25, representing a CAGR of approximately 32%. As of Q3 FY26, AUM reached Rs. 943.93 crore, a 33.4% YoY increase from Rs. 707.47 crore in Q3 FY25.

• Disbursements and Approvals: Business momentum remains strong. In Q3 FY26, disbursements were Rs. 107.34 crore, up from Rs. 90.95 crore YoY. New loan approvals for the same quarter stood at Rs. 130.60 crore, compared to Rs. 111.44 crore in Q3 FY25.

• Profitability Growth: Profit After Tax (PAT) has grown consistently, from Rs. 2.71 crore in FY17 to Rs. 24.39 crore in FY25. The PAT of Rs. 23.24 crore recorded in just the first nine months of FY26 indicates a continued strong growth trajectory.

• Network Expansion: The physical branch network has expanded rapidly, growing from 37 branches in FY23 to 95 branches as of the latest reporting period, enabling deeper market penetration across its operational states.

The company is in a high-growth phase, consistently delivering strong performance across AUM, disbursements, profitability, and expansion of its physical distribution network.

• Net Interest Margin (NIM) & Spread: In Q3 FY26, the company earned a Spread of 8.79% and a Net Interest Margin (NIM) of 2.68%. While the Spread has remained robust and relatively stable over the past year, the NIM has experienced some compression compared to previous quarters.

• Cost of Borrowing: The cost of borrowing has remained stable, standing at 11.01% in Q3 FY26, consistent with the levels seen over the past five quarters. This indicates effective management of funding costs.

• Operational Efficiency: The Cost to Income Ratio stood at 64.10% in Q3 FY26. This metric reflects the ongoing costs associated with the company's rapid expansion and investments in its network and technological infrastructure.

SRG maintains a strong interest spread, though its net interest margin has seen some recent pressure, while the cost-to-income ratio reflects significant ongoing investments in growth.

• Geographical Concentration: The company has a significant concentration in two states. As of Q3 FY26, Rajasthan (38.37%) and Gujarat (39.33%) together constitute over 77% of the total loan book. Any adverse economic or regulatory developments in these regions could disproportionately impact the company's portfolio.

• Segment-Specific Asset Quality: While overall NPAs are under control, there is a divergence in asset quality across segments and states. The Gross NPA is higher in the self-employed segment (1.93%) compared to the salaried segment (1.54%). State-wise, Rajasthan (2.72%) and Madhya Pradesh (2.50%) report higher GNPA ratios than other regions.

• Inherent Credit Risk of Target Segment: The core business focuses on the unorganized and new-to-credit population. This segment's income streams can be informal and more vulnerable to economic downturns, posing an inherent credit risk that requires continuous and rigorous monitoring.

The primary risks for the company are its high geographical concentration in two states and the inherent credit risk associated with its target customer base, which is reflected in varied asset quality across different segments.

• Recent Capital Raising: The company has actively strengthened its capital base to fund growth. It raised Rs. 10 crores through the conversion of share warrants (Mar/May 2024), Rs. 25.94 crores via a preferential issue of equity shares (Jul 2024), and another Rs. 49.93 crores through a preferential issue (Mar 2025).

• NSE Listing: To enhance liquidity and investor visibility, the company listed its shares on the National Stock Exchange (NSE) on August 21, 2023, complementing its existing listing on the BSE.

• Shareholding Structure: As of December 31, 2025, the promoter and promoter group hold a majority stake of 59.06% in the company. Retail investors hold 27.71%, indicating a strong promoter commitment and a sizable public float.

The company has recently fortified its capital base through multiple successful fundraises and expanded its presence in the capital markets with a new listing on the NSE.