šŸ’° Financial Performance

Revenue Growth by Segment

Total income grew by 1.8% YoY to INR 1,089 Cr in FY2025 from INR 1,070 Cr in FY2024. However, for H1 FY2026, total income slightly declined by 1% to INR 537 Cr compared to INR 543 Cr in H1 FY2025. Interest income, the primary driver, grew 2% YoY to INR 527 Cr in H1 FY2026.

Geographic Revenue Split

The company operates primarily in India with a significant concentration in Maharashtra, where a majority of its 72 offices (including 71 branches and 5 satellite offices across 20 states) are located. Specific percentage split per state is not disclosed, but the company notes no significant difference in risk/return across geographic areas within India.

Profitability Margins

Net Profit Margin improved to 14.71% in FY2025 from 14.13% in FY2024. Operating Profit Margin increased to 19.87% in FY2025 from 18.69% in FY2024. However, Return on Assets (RoA) fell sharply to 0.3% in Q1 FY2026 from 1.4% in FY2024 due to a one-time increase in provisions.

EBITDA Margin

Operating Profit Margin stood at 19.87% in FY2025, up 6.31% YoY. Net Interest Margin (NIM) was reported at 3.32% for H1 FY2026, a 5% increase from 3.17% in H1 FY2025, driven by better management of borrowing costs which fell 1% to INR 346 Cr.

Capital Expenditure

Not disclosed as a primary metric for this financial services entity; however, the company maintained a sizeable net worth of INR 1,972 Cr as of June 30, 2025, and a Capital Adequacy Ratio (CRAR) of 34.6%, well above the 15% regulatory requirement.

Credit Rating & Borrowing

Maintains high credit ratings of CRISIL AA+/Stable and ICRA AA+/Stable. Borrowing portfolio stood at INR 8,999 Cr as of September 30, 2025, up 4% YoY. Interest expenses for H1 FY2026 were INR 346 Cr, implying an average borrowing cost of approximately 7.7%.

āš™ļø Operational Drivers

Raw Materials

The primary 'raw material' is Capital/Debt Funds, which constitute the borrowing portfolio of INR 8,999 Cr as of September 2025. Interest expenses represent the largest operational cost at approximately 64% of total income.

Import Sources

Not applicable as the company sources capital domestically from Indian banks, insurance companies, and through debt instruments like Non-Convertible Debentures (NCDs).

Key Suppliers

Key capital providers include the parent GIC Re, other promoter insurance companies (National Insurance, New India Assurance, Oriental Insurance, United India Insurance), and various commercial banks providing sanctioned lines of INR 1,211 Cr.

Capacity Expansion

Assets Under Management (AUM) grew to INR 10,692 Cr as of June 30, 2025, from INR 10,497 Cr in March 2025. The company is expanding its reach through 71 branches and 5 satellite offices, with a focus on scaling disbursements which grew 40% in FY2025.

Raw Material Costs

Interest expenses (cost of capital) were INR 346 Cr for H1 FY2026, a 1% decrease YoY. The company manages these costs through a diverse borrowing mix and a strong credit rating that allows for competitive interest rates.

Manufacturing Efficiency

Efficiency is measured by the Interest Coverage Ratio, which remained stable at 1.32 in FY2025. Debtors Turnover increased 22.4% to 6.94 times, indicating faster recovery cycles.

Logistics & Distribution

Distribution is handled through 71 branches and 5 satellite offices. Staff expenses for this network rose 15% YoY to INR 38 Cr in H1 FY2026.

šŸ“ˆ Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be driven by a 20-21% increase in sanctions and disbursements as seen in H1 FY2026. The strategy focuses on the salaried borrower segment (80% of portfolio) and retail home loans (91% of portfolio). The company is also establishing dedicated Balance Transfer (BT) teams to increase inflows and reduce outflows.

Products & Services

Individual home loans, home renovation loans, and Loan Against Property (LAP).

Brand Portfolio

GIC Housing Finance Limited (GICHFL), leveraging the 'GIC' brand shared with parent General Insurance Corporation of India.

New Products/Services

Focusing on increasing the average ticket size of loans and tightening credit policies to improve portfolio yield, contributing to the 5% YoY increase in NIM.

Market Expansion

Expanding presence in 20 states with a recent focus on increasing the granularity of the loan book and scaling operations in the mid-segment housing market.

Market Share & Ranking

Not explicitly ranked, but identified as a significant player in the mid-segment housing finance market with a 30-year track record.

Strategic Alliances

Strong backing from GIC Re and four other public sector general insurance companies who collectively hold a 42.41% stake, providing managerial and operational support.

šŸŒ External Factors

Industry Trends

The housing finance industry is seeing a shift toward digital onboarding and faster TAT. Competition is high, with a current industry focus on the low-risk salaried segment. GICHF is positioning itself by improving its ECL methodology and asset classification standards.

Competitive Landscape

Faces stiff competition from large commercial banks and established Housing Finance Companies (HFCs) like HDFC (now merged) and others who compete on interest rates.

Competitive Moat

Moat is derived from the 'GIC' brand and strong parentage (GIC Re), which ensures access to capital and managerial expertise. This is highly sustainable as long as the 42.41% promoter holding remains intact.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and inflation. Inflationary trends may reduce housing affordability, potentially impacting loan demand and the repayment capacity of the mid-segment borrower base.

Consumer Behavior

Shift toward seeking faster loan processing and digital interfaces; GICHF is responding by enhancing its value proposition and operational efficiency.

Geopolitical Risks

Low direct impact; however, indirect risks include regulatory changes in the housing sector or shifts in RBI's monetary policy affecting liquidity.

āš–ļø Regulatory & Governance

Industry Regulations

Strictly adheres to RBI Master Directions for HFCs (2021) and NHB Corporate Governance Directions. Recent accounting changes in Q1 FY2026 reclassified repossessed assets to 'loans at amortized cost' to align with regulatory expectations.

Environmental Compliance

Direct environmental risk is immaterial due to the service-oriented nature of the business. Indirect exposure through the loan portfolio is also rated as low.

Taxation Policy Impact

Effective tax rate is standard corporate rate; H1 FY2026 saw a tax credit/provision adjustment of INR 16 Cr due to deferred tax assets (DTA).

Legal Contingencies

The company actively uses the SARFAESI Act for recoveries. While specific pending litigation values are not totaled, the company maintains a Register of Contracts and follows Section 189(1) of the Companies Act for transparency.

āš ļø Risk Analysis

Key Uncertainties

Asset quality remains a key uncertainty; Gross NPA rose to 4.7% in June 2025 from 3.0% in March 2025. While this was largely due to accounting reclassifications, sustained slippages could impact the credit rating.

Geographic Concentration Risk

High concentration in Maharashtra, which could expose the company to regional economic downturns or localized regulatory changes.

Third Party Dependencies

Strong dependency on GIC Re for brand and managerial support; any dilution in GIC Re's ownership (currently 15.26% directly) is a negative rating sensitivity factor.

Technology Obsolescence Risk

Risk of falling behind digital-first competitors; mitigated by the IT Strategy Committee's oversight of IT investments and growth-sustaining technology.

Credit & Counterparty Risk

Credit risk is concentrated in the retail segment; however, 80% of the portfolio is with salaried individuals, which historically offers lower delinquency rates compared to the self-employed segment.