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    Sammaan Capital Limited

    SAMMAANCAP
    Financial Services·13 Aug 2025
    Management Summary

    Sammaan Capital reported a strong Q1 FY26, marked by continued capital accretion, growth in AUM, and stable asset quality. The company emphasized its asset-light strategy, digital transformation, and progress in co-lending partnerships. Strategic initiatives include seeking a rating-accretive partner for Sammaan Finserve and organizational restructuring, with a focus on efficient legacy book rundown and achieving low-teen ROE by FY27.

    Highlights

    5

    • Net Worth increased to ₹22,106 crores from ₹21,822 crores at FY25 end, reflecting continued capital accretion.

    • Growth AUM grew to ₹38,897 crores from ₹37,452 crores in Q4 FY25, forming 64% of total AUM.

    • Gross and Net NPAs remained stable at 1.5% and 0.8% respectively, indicating robust asset quality.

    • Retail origination engine demonstrated scalability with over ₹2,000 crores in transactions in Q1 FY26.

    • Significant progress in digital integration, with 50% of potential borrowers (salaried) now covered and self-employed segment targeted by end of calendar '25.

    Concerns

    2

    • Cost of interest was noted by an analyst as not coming down, despite capital raise and improved access to capital.

    • Management acknowledged ongoing litigations related to NPA recovery and 'fictitious or fallacious complaints' which require navigation.

    What Changed2

    vs Q2 FY26

    Guidance items8 → 6 (-2)Risks discussed2 → 3 (+1)

    Key financials

    Single quarter

    11 metrics
    1. 01Net Worth₹22,106 Cr
    2. 02Total AUM₹62,378 Cr
    3. 03Growth AUM₹38,897 Cr
    4. 04Legacy AUM₹23,000 Cr
    5. 05Net Interest Income₹1,213 Cr

    Capital allocation

    1
    high confidence
    CategoryHeadline
    M&A

    Sammaan Finserve (strategic partner)

    joint venture · pending regulatory

    Guidance & targets

    6
    CategoryTargetPriority
    Credit Cost
    Annualized Credit Costs
    100 basis points
    		High
    Credit Cost
    Quarterly Credit Cost (absolute)
    INR100-odd crores
    		Medium
    Legacy AUM
    Legacy AUM
    INR15,000 crores
    		High
    Legacy AUM
    Legacy AUM Rundown
    INR8,000 crores
    		High
    Gearing
    Leverage Ratio
    2x to 2.5x
    		High
    Profitability
    Return on Equity (ROE)
    low teen-ish
    		Medium

    Strategic Partner for Sammaan Finserve

    next 9 months
    CurrentDecision taken, regulatory interaction ongoing, targeting completion within 9 months.
    TargetProgress towards completion, potential announcement of partner.

    Why it matters

    This is a key strategic initiative expected to be rating accretive for the subsidiary and enhance growth.

    And we are fairly confident💬 that over the next 9 months, we should be in a position to complete this process.

    How to verify

    capital_allocation.m_and_a[0].status

    Risks & concerns

    3
    RiskSeverity

    Litigations related to NPA recovery

    Management expects ongoing litigations as they pursue recovery of NPA written-off assets, but states it will not derail the process. — Management acknowledged

    medium

    Fictitious or fallacious complaints

    Management noted that the system sometimes entertains fictitious complaints, which they will have to navigate. — Management acknowledged

    low

    Cost of interest not declining

    An analyst questioned why the cost of interest was not coming down despite capital raise and improved access to capital. — Analyst not addressed

    medium

    Q&A highlights

    8

    “So our liabilities, ma'am, as would be evident from the ALM would typically have an average maturity of roughly about 5 years. And so that's the contractual actuarial life, not the contractual life. So about 20% to 25% of our liabilities come up for repayments every year, which would mean that approximately INR8,000 crores of principal comes due every year.”

    Clarifies the company's liability structure, average maturity, and annual principal repayment obligations.

    asked by Ankita Agarwal

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 FY26 Financial Performance Overview

    Sammaan Capital reported a net worth of ₹22,106 crores at the end of Q1 FY26, up from ₹21,822 crores in FY25. Total AUM stood at ₹62,378 crores, with Growth AUM contributing ₹38,897 crores (64% of total), an increase from ₹37,452 crores in Q4 FY25. The company recorded a Net Interest Income of ₹1,213 crores and a Profit After Tax of ₹334 crores. Asset quality remained stable with Gross NPA at 1.5% and Net NPA at 0.8%.

    02

    Co-lending Framework & Digital Integration

    The company highlighted the revised RBI co-lending directions in August 2025, which broadened the framework to include non-priority sectors and reduced minimum retention ratio to 10%. Sammaan Capital's asset-light strategy, leveraging co-lending and loan sell-downs, has enabled scaling of its retail origination platform. A robust technology integration framework, including the use of data aggregator 'YUBI', facilitates seamless data transfer, faster onboarding, and efficient risk monitoring, with full migration to the new co-lending system expected by January 2026.

    03

    Strategic Initiatives & Organizational Changes

    Sammaan Capital is pursuing strategic initiatives, including bringing in a rating-accretive strategic partner for its subsidiary, Sammaan Finserve, a process expected to be completed within the next 9 months. Concurrently, the company is undergoing organizational restructuring, with the appointment of a Deputy CEO for Sammaan Capital anticipated within the next 3 weeks. These changes aim to empower the leadership and enhance the standalone growth of Sammaan Finserve.

    04

    Legacy Asset Management

    The legacy AUM continued its planned rundown, standing at approximately ₹23,000 crores, with a projected rundown of ₹8,000 crores for the current financial year, aiming to reach ₹15,000 crores. Management confirmed that 98% of the legacy book reduction is achieved through collections. The company maintains adequate provisioning, with imputed provisions of ₹8,000 crores covering ₹23,000-24,000 crores of legacy assets, and expects annualized credit costs of 100 basis points.

    05

    Product & Distribution Strategy

    Sammaan Finserve focuses on affordable home loans (up to ₹15 lakhs) and semi-urban LAP (up to ₹25 lakhs), with credit costs being minimal but operating costs being significant. The company's digital transformation includes end-to-end online loan fulfillment, digital KYC, and bank statement analysis. The product is currently ready for 50% of salaried borrowers and is expected to be ready for self-employed borrowers by the end of calendar '25. The distribution network is being realigned, consolidating branches in larger cities and expanding into smaller ones, supported by a sales team of 2,000 people.

    06

    Capital & Gearing Strategy

    The company's strategy involves maintaining moderate gearing, with leverage expected to remain in the 2x to 2.5x range, while expanding AUM. The focus is on increasing yields and capital efficiency, leveraging the successful equity capital raise. Sammaan Capital aims to achieve a 'low teen-ish' Return on Equity (ROE) by fiscal '27, driven by business growth and efficient capital utilization.

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