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Sammaan Capital
Our verdict on Sammaan Capital isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
Legacy loans currently stand at ₹ 23,481 Cr out of a total AUM of ₹ 62,378 Cr, representing approximately 37.6% of total AUM. This is a reduction from 39.9% in Q4FY25. (2 in progress, 2 met, 1 revised across 5 tracked commitments)
“So we would be looking at getting to a teen-ish kind of -- low teen-ish kind of ROE by fiscal '27. That's the projection that we have given.”
The consolidated Cost to Income ratio for SCL stands at 20.8% in Q1FY26, nearing the FY27 target of <20%. (1 in progress across 1 tracked commitment)
“FY27 Targets Cost to Income (%) <20%”
The legacy loan book has been reduced to ₹ 20,162 Cr as of 9MFY26, down from ₹ 24,894 Cr in FY25. While progress is being made, the book remains above the ₹ 15,000 Cr target with one quarter remaining in the fiscal year. (1 in progress across 1 tracked commitment)
“Legacy Run-Down ... 24,894 [FY25] 20,162 [9MFY26]”
Expect direct assignments to rise to 40% of the mix by Fiscal '27. — target: 40%
“And by Fiscal ‘27, I expect direct assignments to rise to 40%.”
Management plans to expand the branch network to 400 to 500 cities over the next two financial years. — target: 400 to 500 cities (+4 more commitments)
“We've made a blueprint as to how do we get to about 400 to 500 cities very, very quickly over the course of the next 2 financial years.”
See the full cited Management analysis of Sammaan Capital
How durable is the business?
The company significantly deleveraged, reducing its gearing (debt-to-equity) from 2.4x to 1.9x, creating a much safer 'fortress' balance sheet. (3 expanding, 1 shifted, 1 stable)
“Gearing Q4FY25 1.9x; Q4FY24 2.4x... Fortress Balance Sheet through disciplined de-leveraging”
The company has significantly deleveraged, with gearing reducing to 1.9x and a successful equity raise of Rs. 3,700 crores, though it remains 'over-capitalized' to ensure free flow of debt capital. (1 shifted, 1 stable, 1 expanding)
“The gearing has reduced to 1.9x. Gross NPA is down to half at about 1.3%. Net NPA is at 0.8% and the credit rating is stable.”
Geographic concentration in Maharashtra has significantly reduced from nearly 40% to 19.4%, indicating a much more diversified national footprint. (2 shifted, 1 stable, 1 expanding)
“Geographical Distribution: Maharashtra 39.2%”
The asset-light model is expanding, with management expecting net gains on de-recognition (upfronting prospective income from loan assignments) to be approximately 4.5% of the value of loans sold. (3 expanding, 2 contracting across 3 engines)
“(iii) Net gain on fair value changes: 518.70 (Q3FY26)”
The core lending business is shifting focus toward affordable housing and mid-market mortgage solutions under new promoter ownership, aiming to leverage lower cost of funds to drive profitable growth. (1 shifted)
“Under IHC’s parentage, we will continue to focus on providing affordable housing finance and mid-market mortgage solutions to our customers”
See the full cited Business Model analysis of Sammaan Capital
Where does growth come from?
Legacy book rundown is steady and meeting targets, with the highest ever annual collection in FY25 and a strong Q4 performance. (3 steady, 2 accelerating across 5 signals)
“On a net basis, over the next 3 years, once we are done with all of these provisions and the legacy book has run down, we should be able to cash recover about INR4,500 crores.”
The company is seeing an accelerating trend in lowering borrowing costs, with incremental rates already 35 bps lower than previous levels and a 5x increase in capital flow in the first 45 days of the current quarter compared to last year. (5 accelerating across 5 signals)
“On an overall stock basis, we would expect that in about 9 months to 12 months, the cost of funds should go down by about 270 basis points.”
The company is accelerating its shift toward an asset-light model, specifically targeting a significant increase in Direct Assignments (DA) to 40% by FY27 to improve capital efficiency. (1 accelerating, 3 steady across 4 signals)
“The performance of the pools that we have sold down either under direct assignment or pass-through certificates or co-lending arrangements of roughly INR1 lakh crores. That INR1.03 lakh crores now stands at about INR17,000 crores.”
The company is currently in a de-leveraging phase to strengthen the balance sheet before re-leveraging for growth, as evidenced by the drop in gearing to 1.9x. (2 steady, 1 new trend across 3 signals, 2 leading indicators)
“the leverage, which is about 2.2x, should settle in the range of 4x to 4.5x. That is the go-to long-term for the company, which I believe we should be hitting sometime around 2030.”
Management expects to save 15% to 18% in operating expenses by fully integrating their digital lending and e-mortgage platforms.
“And once all of the tech kicks in, we expect on an operating basis, something like a 15% to 18% cost saving in the business that we do on an opex basis.”
See the full cited Future Growth analysis of Sammaan Capital
What could break the thesis?
The risk is stable. Management acknowledges ongoing litigations related to NPA recoveries but maintains they are 'fictitious or fallacious' and will not derail operations. (1 stable)
“I would also like to address the issue of the ongoing public interest litigation... The matter is sub judice... The allegations are against Mr. Gehlaut. They cannot be attributed to Sammaan Capital.”
The risk is easing as the company has established 24 ongoing relationships with major banks and financial institutions, demonstrating strong partner acceptance. (1 easing, 1 stable)
“The first 2 quarters would be relatively slow as we continue to successfully operationalize the co-lending arrangement framework with a variety of banks.”
STABLE. While incremental rates are easing, the blended borrowing cost remains high at 'a little over 9%'. However, NIM has improved to 6.2%. (1 stable, 2 easing)
“NIM % 5.3% Q3FY26 5.2% Q3FY25”
STABLE. Reliance remains high with 95-96% of new loans partnered with banks, but management views this as a strength for ALM stability. (1 stable)
“Liquidity Coverage Ratio [LCR] as on Dec 31, 2025, stands at 211% against regulatory requirement of 100%”
The company has expanded its partner network to 24 ongoing relationships with major banks, reducing the risk of dependency on any single partner. (1 easing)
“SCL has 24 ongoing relationships with banks/ financial institutions for sell down”
See the full cited Risk analysis of Sammaan Capital
Sammaan Capital analysis by filing period
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