India Shelter Finance Reports 23% AUM Growth in Q2FY27

India Shelter Finance Corporation Limited reported gross assets under management of ₹11,997 crore for the quarter ended September 30, 2026, up 23% year-on-year, while profit after tax rose 19% to ₹146 crore. The Q2FY27 results show loan-book expansion alongside stable reported asset-quality and liquidity indicators.

What did India Shelter Finance report for Q2FY27?

India Shelter Finance reported growth in its loan book, disbursements and quarterly profit for Q2FY27. Gross AUM rose to ₹11,997 crore, compared with the year-earlier period, while quarterly disbursements increased 21% year-on-year to ₹1,126 crore. The company reported PAT of about ₹145.6 crore in its unaudited quarterly results, which is presented as ₹146 crore in its investor presentation.

Revenue from operations for the quarter was ₹450.4 crore, up 22.08% from ₹368.9 crore a year earlier. Interest income, the principal revenue source, increased to ₹369.3 crore from ₹297.4 crore. Profit before tax rose to ₹188.6 crore from ₹157.8 crore in Q2FY26, while basic earnings per share increased to ₹13.36 from ₹11.27.

The company released unaudited results for the quarter and half-year ended September 30, 2026, along with a limited review report issued by statutory auditor S.R. Batliboi & Associates LLP. The disclosures were made under the applicable SEBI listing requirements.

Which operating metrics supported the quarter?

India Shelter Finance's operating metrics show continued lending activity and a wider physical network during the quarter. The company added five branches in Q2FY27, taking its branch network to 312 branches across 15 states. Its employee count stood at 5,010 at the end of the quarter, and it served 147,950 accounts.

Loans stood at ₹9,270.6 crore as of September 30, 2026, versus ₹8,568.5 crore as of March 31, 2026. The difference between this loans figure and gross AUM reflects the distinct measures disclosed by the company. Gross AUM includes the company's reported managed portfolio metric, whereas the financial-results disclosure separately reports loans on the balance sheet.

The company said the cost of funds improved by 30 basis points year-on-year to 8.2% in Q2FY27. Its spread was 6.6%. These measures are relevant for a housing finance company because interest income and borrowing costs materially influence profitability.

How did profitability, capital and liquidity compare?

India Shelter Finance reported return on assets of 5.7% and return on equity of 17.3% in Q2FY27. The company reported net worth of ₹3,401 crore in its investor presentation. A separate regulatory disclosure gave net worth as ₹3,400.86 crore, with the small difference arising from rounding.

For the half-year ended September 30, 2026, total income was ₹882.90 crore and PAT was ₹373.75 crore, according to the unaudited financial statements. The company reported total assets of ₹10,435.53 crore at the end of September. It also disclosed a net profit margin of 32.69% for the half-year.

Its debt-equity ratio was 2.01 times. Liquidity was reported at ₹2,210 crore, while the liquidity coverage ratio was 153.94%. The company also held an AA- (Stable) credit rating. These measures provide context on funding capacity and balance-sheet leverage, though they do not by themselves indicate future borrowing costs or loan growth.

What was the reported asset-quality position?

India Shelter Finance reported gross Stage 3 assets of 1.5% and net Stage 3 assets of 1.2% as of September 2026. In its financial-results metrics, the company also reported gross NPA of 1.55% and net NPA of 1.16%. The labels and percentages are separately disclosed, but both sets of metrics indicate the company's reported non-performing or impaired asset position.

Provision coverage on Stage 3 assets was reported at about 25%, with the detailed metric at 25.49%. Credit cost was 0.6% in the investor presentation. The secured portion of the loan book was reported at 100%, which is an important portfolio characteristic for a housing finance lender.

In Q1FY27, India Shelter Finance had said Stage 3 assets had increased to 1.5%, attributing the movement to seasonality and expecting stabilisation by Q2FY27, with resolutions from Q3FY27. The Q2FY27 gross Stage 3 figure remained at 1.5%. The latest release does not provide a new forecast on future resolutions or asset-quality trends.

Why do the Q2FY27 results matter to investors?

India Shelter Finance's Q2FY27 disclosures matter because they combine double-digit AUM and disbursement growth with reported profitability, stable spreads and contained asset-quality ratios. Gross AUM has expanded from ₹11,044 crore in FY26 to ₹11,997 crore at September 2026. The company has previously cited a 39% compound annual growth rate in gross AUM from FY20 to FY26.

The data also provide a comparison point against the company's earlier FY27 guidance of 25% to 30% loan growth and credit cost of 40 to 50 basis points. The Q2 presentation reported 23% year-on-year gross AUM growth and credit cost of 0.6%, or 60 basis points. These are different reporting measures and periods, so investors will need subsequent disclosures to assess performance against full-year guidance.

No share-price movement, dividend decision or revised annual guidance was disclosed in the supplied Q2FY27 material. For market participants, the relevant reported indicators are future AUM growth, borrowing costs, spreads, Stage 3 assets, credit costs and the pace of branch additions.

Conclusion

India Shelter Finance closed Q2FY27 with gross AUM of ₹11,997 crore, quarterly disbursements of ₹1,126 crore and PAT of ₹146 crore. Revenue and interest income increased year-on-year, while reported return metrics, liquidity and the secured-book share remained supportive of the company's disclosed operating profile.

The next disclosures will be important for assessing progress against the earlier FY27 loan-growth and credit-cost guidance. Investors can also watch whether the Stage 3 asset ratio changes from 1.5%, whether the cost of funds remains near 8.2%, and how further branch additions contribute to disbursements and AUM.