# 1. Financial Performance ## A. Key Figures * **Interest Income:** **₹3,017 Cr** (9M) * **PAT:** **₹314 Cr** QoQ (+4.0% YoY) · **₹957 Cr** 9M (vs. prior loss of ₹2,132 Cr) * **Net Worth:** **₹22,423 Cr** (+₹2,000 Cr YoY) * AUM: ₹44,000 Cr · Gearing: 2.2x (stable) ## B. Revenue & Growth * **Sustainable Income Stream:** Robust interest income generation of ₹3,017 Cr with no borrower losses, underscoring disciplined lending and asset quality. * **Capital Strength:** Net worth expansion reflects retained earnings and balance sheet deepening, supporting scalable operations. ## C. Profit & Margins * **Profitability Recovery:** Return to strong profitability with 9-month PAT of ₹957 Cr, reversing prior-year consolidated loss. ## D. Balance Sheet * **Leverage Discipline:** Stable 2x gearing despite AUM growth, indicating prudent capital management and risk control. --- # 2. Loan Book & Asset Quality ## A. Key Figures * Gross NPA: 1.2% (from 1.3%) · Net NPA: 0.7% (from 0.8%) * Retail Mortgage Pools Outstanding: ₹17,000 Cr (from ₹1.03 lakh Cr sold) * **Legacy Book Net Collections:** **₹5,000 Cr** (FY25) · **₹76,000 Cr** debt reduction (6 years) * **Cash Flow to Lenders:** **₹1.3 Lakh Cr** (6 years) · **₹55,000 Cr** interest paid * **Recovery Guidance:** **₹4,500 Cr** total expected · **₹400–500 Cr/quarter** run rate ## B. NPA Trends * **Asset Quality Improvement:** Significant year-on-year reduction in both gross and net NPAs, signaling effective credit management and portfolio stabilization. * **Credit Cost Discipline:** Long-term annualized credit cost guidance of **100 bps** reaffirmed, reflecting confidence in risk-adjusted returns across legacy and new books. ## C. Retail Mortgage Quality * **Scaled Competitive Advantage:** Retail mortgage pools demonstrate strong performance with **90-day past due rate of only 54%**, reinforcing a durable moat under IHC strategy. * **Capital Recycling Success:** Over **₹85,000 Cr** returned to partner banks from securitized pools, highlighting efficient balance sheet management and trust in underwriting quality. ## D. Legacy Book Collections * **Accelerated Recovery Momentum:** Q4 expected to deliver a surge in cash collections, driven by breakthroughs in large IBC recoveries that will positively impact near-term financials. * **Sustained Execution on Rundown:** Despite aggressive second-half targets, management remains confident in achieving collection goals, supported by strong recent performance including January. * **Prudent Reserve Management:** Released provisions will be retained as strategic reserves until legacy book falls below **₹10,000 Cr**, enhancing recovery capacity. --- # 3. Funding & Cost of Capital ## A. Key Figures * **Cost of Borrowing:** **~9%** current · **target <8%** post-investment * **Cost of Funds Reduction Target:** **270 bps** reduction within 9–12 months * **Borrowing Stock Reduction:** **270 bps** decline expected by **March '27** ## B. Borrowing Mix * **Stable ALM Framework:** Asset-liability management remains well-matched and a core strategic priority, despite reduced market focus. ## C. Cost of Funds * **Downward Trajectory Ahead:** Significant reduction in cost of funds anticipated following completion of investment, driven by refinancing and structural optimization. ## D. Interest Expenses * **Near-Term Pressure:** Interest expenses rose due to aggressive funding activity, including dollar and domestic bond issuances and bank borrowings. --- # 4. Capital & Dividend Policy ## A. Leverage & Funding Strategy * **Leverage Expansion Plan:** Company targets increase in leverage from current **2x** to **4x–5x** by 2030, enabled by anticipated cost of funds reduction and potential rating upgrades. * **Regulatory Progress:** Preferential allotment to IHC has cleared stock exchange, shareholder, and CCI approvals; **RBI and SEBI approvals pending**. ## B. Dividend Outlook * **Dividend Initiation Guidance:** Payouts expected to begin **within ~1 year post-investment**, aligning with investor expectations on capital return. * **Payout Target:** Long-term dividend payout ratio targeted at **30%–40%**, consistent with RBI guidelines and internal RoA and capital adequacy assessments. ## C. Capital Allocation Priorities * **Strategic Use of Leverage:** Incremental debt capacity to be used for **expanding product suite**, not scaling existing offerings, reflecting growth diversification intent. * **Shared Dividend Commitment:** Dividend policy reflects alignment between management and incoming shareholders on balanced capital allocation. --- # 5. Business Model & Operations ## A. Key Figures * **AIF Lending Track Record:** **₹6,200 Cr** cumulative loans deployed * **Transaction Volume:** **₹1 Lakh Cr+** executed with banks and counterparties ## B. Asset-Light Strategy * **Strategic Consolidation:** Merger of Sammaan Finserve into Sammaan Capital to unify lending and distribution, enabling a full suite of mortgage-backed loans for mid-market to low-income segments. * **Clear Operating Segmentation:** Post-merger structure establishes Sammaan Capital as the core lending entity, the AIF as the wholesale credit platform, and Sammaan Finserve as the future financial services arm under IHC guidance. * **Capital Efficiency Focus:** Asset-light model prioritizes RoE accretion by avoiding low-yielding loans (8%–10%), instead targeting higher-yield assets (up to **18–19%**) through selective balance sheet deployment. * **Product Consolidation & Scale:** Full product suite now unified under Sammaan Capital, covering prime and affordable home and LAP loans, supporting scalable, tech-enabled lending. ## C. Digital Lending Platform * **End-to-End Digitization:** Fully digital platform enables seamless processing from lead onboarding to e-signing, leveraging automation and credit analytics built on a legacy e-mortgage system. * **Operational Efficiency Gains:** Full platform rollout expected to deliver **15–18% opex savings**, enhancing margins and scalability. * **Bank Integration Momentum:** Ongoing integration with partner banks aims to stabilize volumes by **May–June next year**, with month-on-month growth already underway. ## D. Co-Lending Progress * **Regulatory Expansion Benefits:** New co-lending rules effective January broaden scope beyond priority sector to include all loan types and financial entities, unlocking incremental opportunities. * **Execution Underway:** Technical integration with multiple banks complete; live business volumes commenced in January, on track to recover to target levels by **May–June**. * **Strategic Optionality:** Co-lending model offers potential for future asset acquisition under IHC’s promoter regime, though deployment expected gradually over time. --- # 6. Regulatory & Legal Risks ## A. Key Figures * **Interest Earned:** **Over ₹3,000 Cr** on loans in question ## B. PIL & Litigation Status * **PIL Dismissed:** Delhi High Court dismissed 2019 PIL in February 2024, citing **no major regulatory violations** and compounded minor lapses. * **Supreme Court Stance:** SC clarified on 19 Nov 2025 it is **not opining on allegations** against the company; SLP filed ~15 months ago with CBI and ED added. * **CBI & ED Findings:** CBI confirmed **no NPA classification, no fraud, no public fund loss**, and identified Sammaan Capital as a **victim of wrongful loss**; investigations focused on **erstwhile promoter and five borrower groups**. * **Zero Financial Exposure:** Company faces **no risk of financial loss** from PIL due to full repayments, zero principal exposure, and prior interest income. * **Legal Confidence:** Company represented by leading counsel and maintains a **solid legal footing**; all litigations were disclosed during IHC stake acquisition. ## C. Regulatory Scrutiny * **Regulatory Clearance:** RBI, SEBI, NHB, and MCA reaffirmed through affidavits that loans were **repaid or standard**, with **no dubious lending** found after multiple audits. * **Merger & Approvals:** Merger of Sammaan Finserve nearing final stages with **expeditious approvals expected**; preferential issue under active review with **joint submissions to RBI** by IHC and management. * **Stakeholder Engagement:** Incoming investor IHC independently verified litigation disclosures and **factored in contingencies** before transaction; both parties expect **speedy resolution**. ## D. Promoter-Related Issues * **De-Promoterization Complete:** Sammaan Capital has **no association with Mr. Gehlaut since 2023**; he holds no board, shareholder, or promoter role. * **Allegations Isolated:** PIL and quid pro quo allegations pertain **solely to Mr. Gehlaut**; company was **not involved in related transactions** and has divested the Indiabulls brand. * **Past Lapses Resolved:** Procedural issues from audits were **compounded legally** with **principal liabilities reduced to zero**. --- # 7. Guidance & Outlook ## A. Strategic Shift Timeline * **Strategic Pivot Underway:** Management is highly confident in transitioning from a mortgage lender to a full-suite NBFC, with a finalized business plan in place pending investment closure. * **No Near-Term Guidance:** Revenue guidance withheld due to material pending strategic changes; updated projections to follow post-transition. * **Implementation Timeline:** Long-term plan set for execution within **one to two quarters** after investment finalization. ## B. Branch Expansion Plan * **Phased Network Buildout:** Current focus on operational consolidation and tech upgrades ahead of accelerated branch expansion post-investment. * **E-Mortgage Rollout:** Expanding into Tier 3 and Tier 4 cities at a pace of **~10 branches per quarter**, with a strategic target of **400–500 cities** over the next two fiscal years. ## C. Investment Closure Expectation * **Final Approval Stage:** Management asserts the process is in its closing phase, with active coordination across legal, banking, and advisory teams to secure remaining regulatory clearances. * **Funding Timeline:** Upon approval, shares will be allotted and funds received within **~15 days**. * **Investor Communication:** A comprehensive update on the investment and forward plans expected **before next quarter’s earnings release**.