SRG Housing Q1 FY27 Results (NSE: SRGHFL)
Signal: Earnings grew
The read
The quarter shows a credit-cost-supported profit outcome rather than a clean acceleration: total income rose 26.5% YoY to ₹5,402.56 lakh and PAT rose 24.9% to ₹847.19 lakh, but sequential total income fell 5.8%, finance costs grew 42.6% YoY, and interest coverage was only 1.42x. The key trajectory to monitor is whether lower ECL of ₹9.33 lakh is sustained without further funding-cost pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹54.03 Cr | +26.5% | -5.8% |
| Net profit | ₹8.47 Cr | +24.9% | |
| EPS | ₹5.39 | +24.7% | |
| EBIT margin | 0% |
P&L walk
Total income increased 26.5% YoY to ₹5,402.56 lakh, led by 37.2% growth in interest income, while PAT rose 24.9% to ₹847.19 lakh as ECL fell 84.1%; finance costs grew faster than income at 42.6%, limiting operating conversion.
Key positives
- Interest income reached ₹5,092.82 lakh, up 37.2% YoY, materially ahead of total income growth of 26.5%.
- ECL declined 84.1% YoY to ₹9.33 lakh and 92.0% QoQ, significantly reducing the provision drag on PAT.
- PAT of ₹847.19 lakh grew 24.9% YoY and EPS of ₹5.39 grew 24.7%, with EPS broadly tracking profit growth.
- Employee costs grew 21.3% YoY versus 26.5% total income growth, indicating some operating-cost containment.
Key concerns
- Finance costs rose 42.6% YoY to ₹2,389.38 lakh, outpacing 26.5% total income growth and pressuring funding spreads.
- Total income declined 5.8% QoQ to ₹5,402.56 lakh and PAT declined 8.4% QoQ to ₹847.19 lakh, showing sequential deceleration.
- Interest service coverage was only 1.42x alongside a 2.92x debt-equity ratio, leaving limited room for further borrowing-cost increases.
- Fees and commission income fell 48.7% YoY to ₹97.41 lakh, reducing diversification of income beyond interest earnings.
Research and educational content only. Not investment advice.