SAMMAANCAP - Sammaan Capital

📊 NSE: SAMMAANCAP 🏢 Finance - Housing 📅 Last Updated: 12/14/2025 12:44

💰 Financial Performance

Revenue Growth by Segment

The company is targeting a significant scale-up to reach an AUM of INR 1.10 lakh Cr by FY27-28. Retail mortgage growth is currently trending at approximately 30% YoY. Derecognition income from co-lending and direct assignments is expected to stabilize at 4% of disbursals.

Geographic Revenue Split

Not disclosed in available documents, though the company is expanding its physical presence to 500 branches across India over the next 2-3 years to diversify its geographic footprint.

Profitability Margins

The company reported a headline solvency ratio (NNPA/net worth) improvement to 2.3% as of June 30, 2025, compared to 5.0% as of March 31, 2024. Net gain on derecognition of loans is targeted at 4% of co-lending flow.

EBITDA Margin

Not disclosed in standard EBITDA format for this NBFC; however, the company maintains a consolidated CRAR of 35.8% (Tier I at 35.1%) as of June 30, 2025, providing a significant capital cushion.

Capital Expenditure

The company is undergoing a massive network expansion to 500-odd branches over 2-3 years. A major capital event is the INR 8,850 Cr preferential issue to Avenir Investment RSC Limited (IHC subsidiary).

Credit Rating & Borrowing

Credit rating is [ICRA]AA with 'Rating Watch with Developing Implications'. Borrowing costs are expected to improve following the IHC investment; recent NCD issuances include a proposed INR 8,000 Cr limit. Debt/Net worth ratio improved to 1.9x in June 2025 from 2.4x in March 2024.

⚙️ Operational Drivers

Raw Materials

Debt Capital (80% of funding mix) and Equity Capital (20% of funding mix).

Import Sources

Domestic markets and International markets (raised a Dollar Bond shortly after the IHC announcement).

Key Suppliers

BSE Limited, National Stock Exchange of India, and various institutional investors for NCDs and Dollar Bonds.

Capacity Expansion

Current branch network is expanding toward a target of 500 branches within 24-36 months to support the asset-light retail origination model.

Raw Material Costs

Cost of funds is a primary driver; the company is leveraging its AA rating to raise capital. The IHC entry is expected to lower borrowing costs by enhancing the corporate governance profile.

Manufacturing Efficiency

Amortization on partner pools is running at approximately 77%, demonstrating high efficiency in loan book churn and collection.

Logistics & Distribution

Distribution is driven by the branch network expansion and digital tech ecosystem integration with IHC.

📈 Strategic Growth

Expected Growth Rate

20-23%

Growth Strategy

The company will utilize an INR 8,850 Cr capital infusion from IHC to scale AUM to INR 1.10 lakh Cr. Strategy involves a 100% asset-light approach for new retail originations, expanding the branch network to 500 locations, and integrating IHC's technology ecosystem to enhance digital lending capabilities.

Products & Services

Home Loans (HL), Loan Against Property (LAP), MSME loans, and Commercial Real Estate (CRE) financing.

Brand Portfolio

Sammaan Capital (formerly Indiabulls Housing Finance), Sammaan Finserve Limited.

New Products/Services

Foray into Commercial Real Estate (CRE) and expanded MSME lending; product selection is currently being redrawn with the new promoter.

Market Expansion

Targeting 500 branches over 2-3 years to deepen penetration in semi-urban and urban mortgage markets.

Market Share & Ranking

Identified as one of the established players in the domestic mortgage finance industry despite recent AUM declines during the transition phase.

Strategic Alliances

Preferential issue agreement with Avenir Investment RSC Limited (IHC) for a 41.2% stake; co-lending partnerships with various banks.

🌍 External Factors

Industry Trends

The industry is shifting toward co-lending; RBI regulations in August 2025 expanded the co-lending scope beyond the priority sector, which is 'extremely positive' for Sammaan's asset-light model.

Competitive Landscape

Competes with AAA-rated HFCs and banks; aims to operate at 4.5x gearing to match industry benchmarks for high-rated players.

Competitive Moat

Moat is built on a long-standing mortgage franchise and a massive capital base (INR 22,106 Cr net worth). The IHC partnership provides a durable advantage in financial flexibility and debt-raising capacity.

Macro Economic Sensitivity

Highly sensitive to interest rate cycles and housing demand; robust customer demand is currently noted in the industry.

Consumer Behavior

Strong shift toward digital-first mortgage processing and demand for smaller-ticket mortgage loans in semi-urban areas.

Geopolitical Risks

The entry of Abu Dhabi-based IHC as a promoter introduces international strategic alignment but subjects the company to cross-border regulatory scrutiny.

⚖️ Regulatory & Governance

Industry Regulations

Received new NBFC-ICC registration from RBI in June 2024. Subject to RBI co-lending guidelines (updated Aug 2025) and requires CCI, RBI, and SEBI approvals for the IHC transaction.

Legal Contingencies

The company is managing the rundown of a legacy portfolio with potential provisioning risks; however, specific pending court case values were not disclosed in the provided text.