Sundaram Home Finance Posts ₹62 Crore Net Profit in Q1 FY26, Disbursements Rise 10%

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Sundaram Home Finance reported a net profit of ₹62 crore for the first quarter of the fiscal year 2025–26, slightly lower than the ₹66 crore recorded in the same quarter last year. The decline was attributed to rising operational costs and higher provisions.

Despite the marginal dip in profit, the company saw strong growth in loan disbursements, which rose 10% year-on-year to ₹1,488 crore for the April–June 2025 period, up from ₹1,353 crore during the same quarter last year. The company’s assets under management (AUM) grew by 24%, reaching ₹18,027 crore as of June 30, 2025, compared to ₹14,533 crore a year earlier.

Managing Director D. Lakshminarayanan stated that the company’s expansion strategy remains focused on growing its presence in Tier II and Tier III towns. As part of this effort, Sundaram Home Finance opened two new branches in Madhya Pradesh, with one in Ratlam and another in Pithampur, during the quarter. He also emphasized that expanding beyond South India continues to be a key growth area for the company.

“Our emphasis continues to be on growing our footprint outside the South, especially in smaller towns where demand for home loans and plot loans is growing steadily,” said Lakshminarayanan.

The company’s business strategy of targeting underserved regions and focusing on self-employed individuals has helped it maintain stable growth in the competitive housing finance market. Sundaram Home Finance has been focusing on affordable housing and plot loans, which have shown strong demand in emerging markets.

While profit margins showed a slight decline, the increase in disbursements and AUM highlights sustained demand for home financing, particularly in semi-urban regions. The company’s performance in Q1 reflects its continued emphasis on regional expansion and customer-centric loan products.