SRG Housing Q1 FY27 Results (NSE: SRGHFL)
Signal: Earnings grew
The read
The trajectory remains expansionary, with total income up 26.5% YoY and interest income up 37.2% to ₹5,092.82 lakh, while PAT rose 24.9% to ₹847.19 lakh; the key watchpoint is funding pressure, as finance costs increased 42.6% YoY to ₹2,389.38 lakh and caused sequential PAT to fall 8.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹54.03 Cr | +26.5% | -5.8% |
| EBIT | ₹33.9 Cr | N/A | |
| Net profit | ₹8.47 Cr | +24.9% | |
| EPS | ₹5.39 | +24.9% | |
| EBIT margin | 0% |
P&L walk
Total income rose 26.5% YoY to ₹5,402.56 lakh, led by 37.2% growth in interest income, while PAT increased 24.9% YoY to ₹847.19 lakh despite finance costs rising 42.6% YoY; sequentially, total income fell 5.8% and PAT fell 8.4%.
Key positives
- Interest income increased 37.2% YoY to ₹5,092.82 lakh, outpacing total income growth of 26.5% and indicating continued loan-book income expansion.
- PAT rose 24.9% YoY to ₹847.19 lakh despite finance costs increasing 42.6% YoY, helped by an 84.1% YoY reduction in ECL impairment to ₹9.33 lakh.
- Employee costs rose 21.3% YoY to ₹1,406.36 lakh, slower than total income growth of 26.5%, providing operating-cost support.
- EPS of ₹5.39 grew 24.9% YoY and broadly tracked PAT growth, with no material dilution signal from the 4,400 ESOP shares allotted during the quarter.
- The company reported 110% security cover and stated that it had complied with covenants for secured redeemable non-convertible debentures.
Key concerns
- Finance costs rose 42.6% YoY to ₹2,389.38 lakh, faster than total income growth of 26.5%, and increased 5.3% QoQ while total income declined 5.8% QoQ.
- Sequential momentum softened: total income declined from ₹5,733.12 lakh to ₹5,402.56 lakh and PAT declined from ₹924.92 lakh to ₹847.19 lakh.
- Leverage remains material at a 2.92x debt-equity ratio, with total debt at 73.18% of total assets and interest service coverage of 1.42x.
- The sharp decline in ECL impairment from ₹58.66 lakh to ₹9.33 lakh aided YoY profit growth and warrants monitoring for sustainability.
Research and educational content only. Not investment advice.