Sundaram Home Finance is targeting a threefold increase in disbursements from its Emerging Business (EB) segment in Andhra Pradesh this year, as it looks to tap growing housing demand in smaller towns and expand its footprint across the state.
The company, which disbursed around ₹50 crore through the EB segment in Andhra Pradesh in FY26, is targeting disbursements of ₹150 crore during the current financial year.
The expansion comes as Sundaram Home Finance sees increasing opportunities in affordable housing, particularly in Tier 2 and Tier 3 towns where industrial development and employment generation could support housing demand.
Branch network to double
Sundaram Home Finance currently operates around 10 EB branches in Andhra Pradesh and plans to double the network to 20 branches this year.
Most of the new branches will be established in smaller towns, with the company recently opening a branch in Chittoor as the first step in the latest expansion programme.
The strategy reflects a broader shift towards underserved markets where formal housing finance penetration remains relatively lower and rising incomes and employment could create new demand.
60 new hires planned
The company also plans to recruit around 60 employees in Andhra Pradesh for its EB business to support the planned expansion.
Sundaram Home Finance MD, D Lakshminarayanan said the company had witnessed consistent growth across its Andhra Pradesh branches during the first year of its EB launch.
“We believe there will be new growth opportunities in the Affordable Housing segment and our planned expansion in the Tier 2 and 3 towns in Andhra reflects our desire to leverage these emerging opportunities in the EB segment.”
According to Lakshminarayanan, the Andhra Pradesh government’s focus on industrial development in smaller towns could generate fresh employment, potentially supporting housing demand.
Smaller towns emerge as growth engine
The company’s Andhra Pradesh strategy is part of its wider expansion of the Emerging Business segment across southern India.
Sundaram Home Finance currently has more than 100 EB branches across the South, targeting customers and entrepreneurs in markets that are traditionally underserved by larger financial institutions.
Its product portfolio includes home loans, plot loans, home improvement and extension loans, affordable housing finance, loans against property and small-ticket loans to entrepreneurs.
Q1 performance
The expansion follows a strong first-quarter performance.
Sundaram Home Finance reported net profit of ₹85 crore on disbursements of ₹1,665 crore in Q1 FY27.
Assets under management grew 11% year-on-year to ₹20,325 crore as of June 30, 2026.
The company, a wholly owned subsidiary of Sundaram Finance, is betting that deeper penetration into smaller towns can provide a new growth avenue for its affordable housing and Emerging Business portfolio.
The planned tripling of Andhra Pradesh disbursements, alongside a doubling of the branch network, signals an aggressive push to capture housing finance demand emerging beyond the state’s major urban centres.