Sammaan Capital (SAMMAANCAP) Q2 25/26 earnings summary

Executive summary

• Announced a proposed preferential allotment to International Holding Company (IHC) for INR 8,850 crore, representing a 41.2% stake, with an open offer for an additional 26% at INR 139 per share, potentially raising IHC's stake to 63.4%.

• Shareholder approval received; regulatory approvals from RBI, CCI, and SEBI are in process, with transaction expected to close by end of FY26 or early FY27.

• Consolidated net profit for the half year ended September 30, 2025, was ₹642.77 crore, a turnaround from a loss of ₹2,433.96 crore in the same period last year.

• The company is undergoing a transformation with a focus on digitalization, product diversification, and operational efficiency, leveraging synergies with IHC.

• Immediate impact seen in borrowing profile, with a $450 million dollar bond issued at a 150–200 bps lower rate than prior issuance.

Financial highlights

• Net worth increased to INR 22,373 crore year-over-year; AUM at nearly INR 42,000 crore, with legacy loan AUM declining by INR 9,000 crore.

• Total AUM rose to ₹64,004 Cr from ₹62,928 Cr year-over-year.

• NII declined to ₹975 Cr from ₹1,187 Cr; PAT improved to ₹308 Cr from a loss of ₹2,761 Cr in Q2FY25.

• Net gain on derecognition recorded at INR 1,201.21 crore for the half year, up from INR 42.50 crore year-over-year.

• Net interest margin at 5.5%, reflecting increased retailization of AUM.

Outlook and guidance

• Disbursements targeted to increase from INR 15,000 crore annualized to INR 35,000 crore by FY27.

• Product suite expansion planned, with a focus on low- to mid-income segments and moving beyond mortgages.

• Anticipates a 200 bps reduction in cost of funds, potentially boosting PAT by over 50%.

• Guidance for FY27 and beyond under revision; updated targets to be provided after two quarters.

• Transitioning to new co-lending regulations to unlock scalability and reduce operational costs.