Sundaram Home Finance Ltd reported a 37% year-on-year increase in net profit to ₹85 crore for the first quarter ended June 30, 2026, supported by healthy loan growth and strong traction in its emerging business segment.
The wholly owned subsidiary of Sundaram Finance also recorded a 12% increase in disbursements to ₹1,665 crore, compared with ₹1,488 crore in the corresponding quarter last year.
The company’s Assets Under Management (AUM) grew 11% to ₹20,325 crore as of June 30, 2026, up from ₹18,027 crore a year earlier.
Emerging business drives growth
A key highlight of the quarter was the robust performance of the Emerging Business (EB) segment, which comprises affordable housing finance and small-ticket business loans.
Disbursements in the segment more than doubled to ₹180 crore during the quarter, compared with ₹83 crore in the same period last year, reflecting strong demand from smaller towns.
Focus on Tier-3 and Tier-4 markets
Sundaram Home Finance Managing Director D Lakshminarayanan attributed the strong performance to increasing home ownership and improving affordability in smaller towns.
He said economic development in these markets is creating significant opportunities for affordable housing finance, while the company’s branch expansion across southern India has helped accelerate growth in the emerging business portfolio.
Looking ahead, the company plans to strengthen its presence further by opening 25 additional branches dedicated to the Emerging Business segment during the current financial year.
Expansion strategy
Lakshminarayanan said Sundaram Home Finance will continue to focus on Tier-3 and Tier-4 towns, where demand for affordable housing finance is expected to remain robust.
Alongside its affordable housing business, the company also expects healthy growth in its prime home finance portfolio, particularly in the mid-market housing segment.
Sundaram Home Finance offers a range of products including home loans, plot loans, home improvement and extension loans, affordable housing finance, loans against property and small-ticket loans for entrepreneurs.
The latest quarterly performance underscores the growing importance of smaller towns in India’s housing finance market, with lenders increasingly expanding beyond metropolitan centres to tap rising aspirations and improving affordability.