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| Product | Quantum (Rs. Cr) | Long Term Rating | Short Term Rating |
| Bank Loan Ratings | 100.00 | ACUITE A- | Stable | Assigned | - |
| Bank Loan Ratings | 775.00 | ACUITE A- | Stable | Upgraded | - |
| Non Convertible Debentures (NCD) | 100.00 | ACUITE A- | Stable | Upgraded | - |
| Total Outstanding | 975.00 | - | - |
| Total Withdrawn | 0.00 | - | - |
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Rating Rationale |
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Acuité has assigned the long-term rating of ‘ACUITE A-’ (read as ACUITE A minus) on the Rs.100.00 Cr. Bank facility of SRG Housing Finance Limited (SHFL). The outlook is 'Stable'.
Acuité has upgraded the long-term rating to ‘ACUITE A-’ (read as ACUITE A minus) from ‘ACUITE BBB+’ (read as ACUITE triple B plus) on the Rs. 775.00 Cr. Bank facility of SRG Housing Finance Limited (SHFL). The outlook is revised from "Positive" to "Stable". Acuité has upgraded the long-term rating to ‘ACUITE A-’ (read as ACUITE A minus) from ‘ACUITE BBB+’ (read as ACUITE triple B plus) on the Rs. 100.00 Cr. NCD (Non Convertible Debentures) of SRG Housing Finance Limited (SHFL). The outlook is revised from "Positive" to "Stable". Rationale for the rating The rating upgrade reflects SRG Housing Finance Limited’s (SHFL) improved business and financial risk profile, driven by sustained growth in its loan book, stable earnings profile, comfortable asset quality and strong capitalisation. SHFL’s on-book AUM increased to Rs. 943.93 crore as on 9MFY26 from Rs. 759.36 crore as on FY25, supported by healthy disbursements of Rs. 303.93 crore during 9MFY26. Profitability remained stable with PAT of Rs. 23.24 crore in 9MFY26, aided by healthy NIM of ~10.65% and controlled operating and credit costs.The asset quality profile remains comfortable with GNPA at 1.83% and on-time portfolio improving to ~90.04% as on 9MFY26 supported by granular portfolio characteristics. Collection efficiency remained healthy at ~89.61% during the period. SHFL’s capital position continues to be strong with net worth of Rs. 287.80 crore and CAR of 38.99%, providing adequate growth headroom, while gearing remains moderate at 2.78 times as on 9MFY26. The rating also factors in the experienced management team and established presence in its key operating regions. However, the rating continues to be constrained by the moderate scale of operations and geographical concentration, with a significant proportion of the portfolio concentrated in Rajasthan and Gujarat, alongside exposure to newer geographies.
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| About the company |
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SRG Housing Finance Limited was incorporated on 10 March 1999 which is a National Housing Bank registered company having its head office at Udaipur, Rajasthan. SHFL is engaged in extending Home loans and Loan against property. The company is promoted by Mr. Vinod Kumar Jain who has over three decades of experience in financial services. SHFL is listed on BSE and NSE platform. The company operates through a network of 95 branches spread across seven states namely, Rajasthan, Madhya Pradesh, Gujarat, Andhra Pradesh, Karnataka, New Delhi and Maharashtra as on December 31, 2025.
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| Unsupported Rating |
| Not Applicable. |
| Analytical Approach |
| Acuité has considered standalone business and financial risk profile of SHFL to arrive at the rating. |
| Key Rating Drivers |
| Strength |
| Strong capitalisation and comfortable financial risk profile
SHFL continues to maintain a strong capital structure, underpinned by a net worth of Rs. 287.80 crore and a high Capital Adequacy Ratio (CAR) of 38.99% as on 9MFY26, providing adequate buffers to support future growth. The company’s moderate gearing of 2.78 times and stable funding profile, along with its demonstrated ability to raise borrowings from banks and financial institutions which support its financial flexibility. The company reported PAT of Rs. 23.24 crore during 9MFY26 (FY25: Rs. 24.40 crore), reflecting stable earnings supported by healthy NIM of ~10.65%, controlled operating expenses and moderate credit costs.
Comfortable asset quality supported by granular portfolio and healthy collections The asset quality profile of SHFL remains comfortable, with GNPA levels at 1.83% and an improving on-time portfolio of ~90.04% as on 9MFY26. The portfolio is granular in nature, characterised by an average loan ticket size of Rs. 10-12 lakh and a conservative LTV of ~40%, which provides inherent protection against credit losses. Collection efficiency remains healthy, with overall collections at ~89.61%, reflecting stable borrower repayment behaviour and effective collection mechanisms.
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| Weakness |
Small scale of operations and geographical concentrationSHFL primarily extends Housing Loan to self-employed borrowers engaged in small business and trading activities, largely located in Tier II and Tier III markets, which exposes the portfolio to economic and income volatility inherent in these segments. With an on-book loan portfolio of Rs. 943.94 crore as on 9MFY26, the company continues to operate at a relatively small scale, limiting its ability to absorb external shocks.Further, the portfolio remains geographically concentrated, with Rajasthan accounting for ~40.02% and Gujarat ~39.58% of the outstanding portfolio as on December 31, 2025. While SHFL has initiated geographic diversification through branch expansion in Madhya Pradesh, Andhra Pradesh, Karnataka and Maharashtra, these markets are still in a gradual ramp-up phase. Any adverse regional event, such as a slowdown in economic activity or migration of business activity to other geographies, could impact borrower cash flows and, consequently, SHFL’s asset quality.
Acuité believes that the company’s ability to scale up its franchise, improve diversification and strengthen its presence across geographies will remain a key rating sensitivity. |
| ESG Factors Relevant for Rating |
| SRG Housing Finance Limited (SHFL) belongs to the housing finance sector which complements banks’ efforts in improving mortgage penetration in India. Some of the material governance issues for the financial services sector are policies and practices with regard to business ethics, board diversity and independence, compensation structure for board and KMPs, role of the audit committee and shareholders’ rights. On the social aspect, some of the critical issues for the sector are the contribution to financial inclusion and community development, responsible financing including funding of environmentaly friendly housing projects and policies around data privacy. The industry, by nature has a low exposure to environmental risks. SHFL maintains adequate transparency in its business ethics practices as can be inferred from the entity’s disclosures regarding related party transactions, vigil mechanism, insider trading and whistle blower policy. It also adheres to Reserve Bank of India’s Fair Practices Code and has the necessary interest rate and grievance redressal policies. The board of directors of the company comprises three independent directors and two female directors out of a total of six directors. The company works on several community development initiatives through its CSR projects. |
Rating Sensitivity
| Potential triggers (individual or collective) for an upward rating action: |
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| Potential triggers (individual or collective) for a downward rating action: |
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| All Covenants |
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Until the Final Settlement Date, the issuer shall: · Maintain the ratio of the Total Debt of the Issuer to the Tangible Net Worth of the Issuer of not more than 6 times; · Maintain a Capital Adequacy Ratio of not less than 25% or any other higher threshold as may be prescribed by the RBI from time to time, whichever is higher · NNPA to be below 2.0% respectively · Cumulative Asset Liability mismatch should always be positive in all the buckets upto 12 months to the extent of at least 10%. If the said covenant is breached, then the company will have a curing period of 2 months to set right the same. · Issuer to remain PAT positive on a quarterly basis. · Maximum exposure to a single state should not exceed 50% of the total AUM at any point of time during the life of the instrument. The financial covenants set out in the Section 6.2.2 (Financial Covenants) shall be tested on a quarterly basis for each Quarterly Date, on the basis of consolidated and standalone financial statements of the Issuer. For the purpose of aforementioned Financial Covenants, following terms shall have the following meanings: Capital Adequacy Ratio means the capital adequacy ratio prescribed by the RBI from time to time. Total Debt shall include the following: - All Long-Term Borrowings including ineligible portion of subordinated debt in form of Tier II Capital including current maturities - All Short Term Borrowing - Any Guarantee or Letter of Comfort/Shortfall undertaking provided by the Company, if any “Net NPA” shall be as defined under RBI NBFC Directions (as amended from time to time)” “Tangible Net-worth” shall mean the equity share capital plus all reserves and surplus, as reduced by intangible assets, deferred tax assets, revaluation reserve, miscellaneous expenses, and any credit enhancement provided by the Company on managed asset book. All covenants would be tested on a quarterly basis i.e. as on 31st March, 30th June, 30th September, 31st December every year, starting from 30-June-2025, on consolidated and standalone balance sheet till the redemption of the NCDs. |
| Liquidity Position |
| Adequate |
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SHFL’s overall liquidity profile remains adequate with no negative cumulative mis-matches in near to medium term as per ALM dated March 31, 2025. As on December 31, 2025, the company maintained total liquidity of approximately Rs.148.93 crore, comprising cash and bank balances of Rs.14.13 crore (excluding Rs.13.69 crore of FDRs pledged with lenders), investments of Rs.91.30 crore in bonds, mutual funds, shares and fixed deposits, unutilized cash credit and overdraft limits of Rs.3.50 crore, and undrawn sanction limits of Rs.40.00 crore. The borrowing profile of SHFL stood at Rs.799.28 crore as on December 31, 2025, and consisted of term loans from banks, NBFCs/FIs, and non-convertible debentures (NCDs). The adequate on-balance-sheet liquidity and available bank lines provide sufficient buffer to meet near-term debt obligations.
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| Outlook - Stable |
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| Other Factors affecting Rating |
| None. |
| Key Financials - Standalone / Originator | ||||||||||||||||||||||||||||||||||||||||
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| Status of non-cooperation with previous CRA (if applicable): |
| Not Applicable |
| Any other information |
| None |
| Applicable Criteria |
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• Application Of Financial Ratios And Adjustments: https://www.acuite.in/view-rating-criteria-53.htm • Default Recognition: https://www.acuite.in/view-rating-criteria-52.htm • Non-Banking Financing Entities: https://www.acuite.in/view-rating-criteria-44.htm |
| Note on complexity levels of the rated instrument |
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