Sammaan Capital Shares Plunge 4% as Q1 Profits Dip 27% to Rs 243 Crore Amidst 31% Revenue Decline.
Shares of Sammaan Capital experienced a significant decline of nearly 4% on the NSE, closing at Rs 155, following the company’s Q1FY27 results which revealed a 27% drop in consolidated profit to Rs 243 crore compared to Rs 334 crore in the same period last year. This decrease is aligned with the decrease in total revenue from operations, which fell to Rs 1,651 crore from Rs 2,409 crore year-over-year. Total income stood at Rs 1,682 crore, while the company’s total disbursement reached Rs 3,875 crore across five products, servicing 12,000 new customers, predominantly in secured loans, which constituted 97% of disbursements. Importantly, the capital adequacy ratio was reported at a robust 20.1%, indicating a solid financial buffer.
The quarter marked a pivotal transition for Sammaan Capital, being its first under the IHC Group, which has bolstered its balance sheet. The management, led by Gagan Banga, emphasized an intent to responsibly accelerate growth and reduce funding costs; targeting a downward trajectory from 10.0% in Q1FY27 to approximately 9.3% by the end of the fiscal year, with further reductions anticipated in subsequent years. The expectation of tightening funding costs is favorable as it promises enhancements in net interest margins and overall profitability amid the company’s growth strategy.
Sammaan Capital aims to achieve disbursements of Rs 30,000 crore in FY27, significantly boosting its financial activities with planned growth to Rs 40,000–50,000 crore by FY28 and potentially reaching Rs 50,000–92,000 crore annually by FY29-30. Additionally, the company plans to broaden its product offerings, with expected launches of digital personal loans and micro loans against property in H2FY27, followed by gradual introductions of various financing solutions up to FY30. Such strategic expansions are designed to capitalize on the diversified borrower base and market opportunities, ensuring robust pathways for revenue generation.
In terms of stock performance, while the share price showed minor fluctuations recently, it has demonstrated a modest increase of 1.72% over the past month and retains a 4.05% gain over the past year, despite a 1.30% decline in the current calendar year. The comparative performance over the last three to five years reflects a notable upward trend, indicating resilience and potential for further recovery in the company’s market standing, particularly as it navigates these transitions and escalates its operational capacities.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)