India Shelter Q2 profit rises 19% as AUM reaches Rs 11,997 crore

India Shelter Finance Corporation Limited reported Q2FY27 profit after tax of Rs 146 crore, up 19% year on year, while gross assets under management reached Rs 11,997 crore at September 30, 2026, up 23%. India Shelter said a Q1FY27 shift in disbursement recognition affected reported disbursement and AUM growth comparisons.

What drove India Shelter’s Q2FY27 profit growth?

India Shelter’s profit after tax rose to Rs 146 crore in Q2FY27 from Rs 122 crore in Q2FY26, an increase of Rs 24 crore or 19%, and was 2% above Rs 143 crore in Q1FY27. For H1FY27, profit after tax reached Rs 289 crore, compared with Rs 241 crore in H1FY26, representing 20% growth.

The profit increase accompanied a 23% year-on-year rise in gross assets under management, or AUM, to Rs 11,997 crore from Rs 9,728 crore. Return on assets, or RoA, was 5.7% in Q2FY27, versus 5.8% in both Q2FY26 and Q1FY27, while return on equity, or RoE, was 17.3%, compared with 17.0% a year earlier and 17.5% in the preceding quarter.

How did India Shelter’s loan book and disbursements change?

India Shelter’s gross AUM increased by Rs 2,269 crore from Rs 9,728 crore in Q2FY26 and by Rs 713 crore from Rs 11,284 crore in Q1FY27. The company reported 23% year-on-year and 6% quarter-on-quarter AUM growth at the end of Q2FY27.

Q2FY27 disbursements were Rs 1,126 crore, up Rs 195 crore or 21% from Rs 931 crore in Q2FY26. However, H1FY27 disbursements were Rs 1,767 crore, below Rs 1,817 crore in H1FY26, while Q1FY27 disbursements were reported at Rs 641 crore.

India Shelter provides affordable home loans and loans against property in Tier 2 and Tier 3 geographies for low- and middle-income customers building or buying first homes. Its distribution footprint stood at 312 branches across 15 states as of September 30, 2026, supporting the Rs 11,997 crore gross AUM balance.

Why are India Shelter’s disbursement comparisons affected by recognition changes?

India Shelter transitioned in Q1FY27 to recognising disbursements on cheque realisation rather than cheque handover, and said this affected reported disbursement and AUM growth. The change is why the company did not provide a quarter-on-quarter percentage comparison for disbursements between Q1FY27 of Rs 641 crore and Q2FY27 of Rs 1,126 crore.

Management said normalised AUM growth was 26% to 27% year on year, compared with reported growth of 23% from Rs 9,728 crore to Rs 11,997 crore. This normalised range is management’s measure, and India Shelter did not disclose a normalised disbursement figure for Q2FY27 or H1FY27.

The reported Q2FY27 year-on-year disbursement comparison remains 21%, measured against Rs 931 crore in Q2FY26. The recognition transition occurred during Q1FY27, so the half-year total of Rs 1,767 crore requires consideration of the revised timing of recognition.

What do India Shelter’s funding and asset-quality figures show?

India Shelter’s cost of funds improved by 30 basis points year on year to 8.2% in Q2FY27, while its spread was 6.6%. A basis point is one-hundredth of a percentage point; the Q2FY27 spread was unchanged from Q1FY27 and above the 6.4% reported in Q2FY26.

Operating expenditure as a share of gross AUM was 4.0% in Q2FY27, against 3.9% in Q2FY26 and 4.0% in Q1FY27. Net worth was Rs 3,401 crore and liquidity was Rs 2,210 crore as of September 2026.

Gross Stage 3 assets were 1.5% at September 2026, unchanged from Q1FY27 but higher than 1.2% a year earlier. Net Stage 3 was 1.2%, and the Stage 3 provision coverage ratio, or PCR, was 25% at September 2026; India Shelter described both measures as stable.

How is India Shelter expanding its branch network?

India Shelter added five branches in Q2FY27, taking its geographic presence to 312 branches as of September 30, 2026. Management described the additions as part of its branch-expansion strategy, while the company’s network covered 15 states at the quarter end.

Employee strength was 5,010 at the end of Q2FY27, when gross AUM rose 6% sequentially to Rs 11,997 crore and disbursements totalled Rs 1,126 crore. India Shelter did not disclose its Q1FY27 branch count, so the release supports the five-branch addition but not a calculation of the prior branch base.

Conclusion

India Shelter’s Q2FY27 results paired 19% year-on-year profit growth to Rs 146 crore with 23% reported AUM growth to Rs 11,997 crore. Spreads held at 6.6%, the cost of funds declined 30 basis points year on year to 8.2%, and gross and net Stage 3 ratios stood at 1.5% and 1.2%, respectively.

The next reported periods will show how the Q1FY27 move to cheque-realisation recognition affects comparable disbursement and AUM trends. Management has also identified branch expansion as part of its strategy after adding five branches in Q2FY27 and reaching 312 branches at September 30, 2026.