RHDFCL’s Rs 250 crore commitment comes as H1 loss widens

Religare Housing Development Finance Corporation Limited has received a Rs 250 crore strategic capital commitment from REL as its H1 FY27 loss widened to Rs 13.35 crore from Rs 8.87 crore and assets under management stood at Rs 242.9 crore in Q2 FY27. RHDFCL says the commitment is intended to strengthen its balance sheet, enhance leverage and enable diverse funding.

Why is RHDFCL receiving Rs 250 crore?

RHDFCL is receiving the Rs 250 crore commitment to strengthen its balance sheet, support leverage and access more varied funding sources during FY27. Management describes the commitment as strategic capital from REL, while the presentation says the housing-finance business remains in a transition phase focused on portfolio stability, technology transformation and capital management.

The company reported net worth of more than Rs 170 crore, a capital-to-risk weighted assets ratio (CRAR) of 117% and no external borrowings at Q2 FY27. RHDFCL says the planned FY27 capital infusion is intended to drive business growth and support new initiatives, rather than disclosing a specific loan-book growth target.

RHDFCL operates as an affordable-housing specialist with 15 branches, about 2,700 customers and operations in eight states at Q2 FY27. Its stated business focus includes self-employed and informal borrowers, sourcing loans within a 30 km to 40 km branch catchment, and increasing its focus on home loans for self-construction.

How stable was RHDFCL’s loan book in Q2 FY27?

RHDFCL’s assets under management, or AUM, were broadly stable at Rs 242.9 crore in Q2 FY27, down from Rs 247.1 crore in Q1 FY27 and Rs 244.3 crore in Q2 FY26. The loan book was therefore Rs 3.9 crore lower sequentially and Rs 1.4 crore below its level a year earlier, while management said the portfolio remained stable during its information-technology transformation.

Total income fell to Rs 6.96 crore in Q2 FY27 from Rs 7.41 crore a year earlier and Rs 7.43 crore in Q1 FY27. Portfolio yield also moderated to 14.5% from 15.0% in Q2 FY26 and 14.6% in the preceding quarter, based on RHDFCL’s reported key ratios.

The Q2 FY27 portfolio comprised 67% home loans and 33% loans against property, with self-employed and non-professional customers accounting for 57% and salaried customers for 43%. RHDFCL reported an average ticket size of about Rs 11 lakh, a loan-to-value ratio of about 46% for outstanding cases, and more than 50% of customers with a bureau score above 700.

Why did RHDFCL’s H1 FY27 loss widen?

RHDFCL’s loss after tax widened to Rs 13.35 crore in H1 FY27 from Rs 8.87 crore in H1 FY26 as operating expenses rose while total income edged lower. Total income declined by Rs 25 lakh to Rs 14.39 crore, whereas operating expenses increased by Rs 6.51 crore to Rs 29.57 crore, resulting in a pre-provision operating loss of Rs 15.18 crore.

Employee-benefit expenses rose to Rs 16.57 crore in H1 FY27 from Rs 15.24 crore, administration and operating costs increased to Rs 10.07 crore from Rs 7.16 crore, and depreciation reached Rs 2.93 crore from Rs 66 lakh. RHDFCL says it is building a digital-first operating model through automation and technology upgrades, but does not allocate these cost changes to particular projects.

The Q2 FY27 loss after tax was Rs 8.35 crore, compared with a Rs 4.72 crore loss in Q2 FY26 and a Rs 5 crore loss in Q1 FY27. Interest income increased to Rs 7.44 crore from Rs 7.06 crore year on year, but interest expenses rose to Rs 84 lakh from Rs 9 lakh, leaving net interest income lower at Rs 6.60 crore versus Rs 6.97 crore.

What changed in RHDFCL’s asset quality and capital position?

RHDFCL reported lower non-performing asset ratios in Q2 FY27, with gross non-performing assets, or GNPA, at 3.5% against 4.5% in Q2 FY26 and 4.4% in Q1 FY27. Net non-performing assets, or NNPA, declined to 2.6% from 3.3% both year on year and sequentially, which management attributed to collection efforts and recoveries.

Credit cost was Rs 1.83 crore in H1 FY27, compared with negative Rs 45 lakh in H1 FY26, while Q2 FY27 credit cost was Rs 1.77 crore after Rs 6 lakh in Q1 FY27. The presentation reports the lower GNPA and NNPA ratios alongside this higher H1 credit-cost figure, but does not provide a reconciliation between portfolio-ratio changes and the income-statement charge.

CRAR declined to 117.1% in Q2 FY27 from 142.1% a year earlier and 120.5% in Q1 FY27. RHDFCL reported long-term ratings of ICRA BBB- with a stable outlook and CARE BBB with a stable outlook, alongside an ICRA A3 short-term rating.

What is RHDFCL planning to do with the capital and platform?

RHDFCL plans to use FY27 capital management alongside technology and distribution initiatives intended to support growth. The company is identifying high-potential direct selling agent and connector partnerships to improve productivity and business generation, while its 15-branch network continues to target affordable-housing borrowers in existing markets.

Management also says it plans to use digitisation, process automation, artificial intelligence and machine learning to improve productivity and optimise operating costs. These are disclosed initiatives rather than reported outcomes, and the presentation gives no date for completion of the Rs 250 crore infusion or a target level for AUM after the capital is received.

Conclusion

RHDFCL’s Rs 250 crore commitment gives the lender a stated route to reinforce its balance sheet, increase leverage and seek varied funding. It comes with AUM broadly unchanged at Rs 242.9 crore, improved Q2 FY27 GNPA and NNPA ratios of 3.5% and 2.6%, and a wider H1 FY27 loss of Rs 13.35 crore as operating costs increased.

The next disclosed milestones are the planned FY27 capital infusion, the technology transformation and the development of direct selling agent and connector partnerships. Subsequent disclosures will indicate whether those steps change RHDFCL’s funding mix, support growth from its Rs 242.9 crore AUM base, and affect operating expenses and losses.