AI-generated · cited to primary sources · not investment advice
Sammaan Capital (535789) May 2025 Filing Analysis
Does management do what it says?
The company recorded INR 468 crores in net gain on derecognition for the quarter, significantly exceeding the previous guidance of INR 150 crores. (1 exceeded across 1 tracked commitment)
“Aiming for a Standalone Growth AUM of ~₹15,000 Cr by FY27 and a steady-state RoA of 4%+”
The company has achieved a Net NPA of 0.8% (80 bps) in Q1FY26, which is significantly better than the target range of 120 bps. (3 exceeded across 3 tracked commitments)
“we would still like to stick to the 120-basis points type of range and not over commit ourselves”
The company reports a Growth AUM of ₹ 38,897 Cr as of Q1FY26, showing progress towards the FY27 target of ₹ 1 lakh crore. (2 in progress, 1 exceeded across 3 tracked commitments)
“on a goal of reaching a Fiscal ‘27 growth AUM of Rs. 1 lakh crore, we are at Rs. 37,452 crores, still a long way to go.”
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%”
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%.”
See the full cited Management analysis of Sammaan Capital
How durable is the business?
The company is leveraging technology to maintain a low cost-to-income ratio of 27.9%, with a target to drop below 20% by FY27 through digital scale. (2 expanding)
“Cost to Income (%) FY25 27.9%; FY27 Targets <20%”
Processing fees are becoming a more structured revenue stream, currently running at 1.25% of retail disbursals (approx. Rs. 5,000 crores per quarter). (5 expanding)
“The processing fee that we get on the loans that we disburse is approximately 1.25% of the retail disbursals. Currently, that is running at about Rs. 5,000 odd crores per quarter.”
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.”
See the full cited Business Model analysis of Sammaan Capital
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