Sundaram Home Finance, a Chennai-based housing finance company, reported a 20% year-on-year increase in net profit to ₹90 crore for the second quarter ended September 30, 2026, compared with ₹75 crore in the corresponding quarter last year, supported by strong loan disbursements and expansion into smaller towns.
Total disbursements rose 31% to ₹2,199 crore in Q2 FY27 from ₹1,681 crore in Q2 FY26, while assets under management (AUM) increased 14% to ₹21,213 crore as of September 30, 2026, against ₹18,572 crore a year earlier.
Emerging Business disbursements surge 63%
The company’s Emerging Business segment, comprising affordable housing finance and small-ticket loans, recorded a 63% increase in disbursements to ₹238 crore in the September quarter, compared with ₹146 crore in the year-ago period.
The segment’s growth reflects the company’s strategy of expanding its presence in smaller towns across southern India, where demand for affordable housing finance and loans to small entrepreneurs is providing an avenue for business expansion.
Sundaram Home Finance has added nearly 50 branches over the past 12 months, taking its Emerging Business branch network to more than 120 locations.
Sundaram Home Finance Managing Director D Lakshminarayanan said the company’s expansion into small towns across southern India had contributed to a near doubling of Emerging Business disbursements in the first half of the financial year.
First-half profit rises 29%
For the six months ended September 30, 2026, net profit increased 29% to ₹175 crore from ₹136 crore in the corresponding period of the previous financial year.
Total disbursements during the first half rose 22% to ₹3,864 crore from ₹3,170 crore a year earlier.
Emerging Business disbursements reached ₹418 crore in the first half, reflecting the benefits of branch expansion and the company’s increasing focus on affordable housing finance and small-ticket lending.
The stronger first-half performance indicates that the company is sustaining growth across its lending operations while extending its reach beyond larger urban markets.
Small towns to drive second-half growth
Sundaram Home Finance expects demand in the mid-income housing segment to remain robust, with smaller towns continuing to drive lending volumes.
“With the setting up of over 120 Emerging Business branches, we are now well poised to leverage this network to take the growth momentum into the rest of the year,” Lakshminarayanan said.
The company plans to continue investing in infrastructure across Tier 3 and Tier 4 towns in southern India during the second half of FY27.
Its product portfolio includes home loans, plot loans, home improvement and extension loans, affordable housing finance, loans against property and small-ticket loans for entrepreneurs.
The expansion strategy positions the company to tap demand in underserved markets, although sustaining the current pace of growth will depend on its ability to convert the wider branch network into higher disbursements while maintaining asset quality.