Sundaram Home Finance Reports Strong Q3 FY26 Performance with 20% Profit Growth
Chennai-based Sundaram Home Finance has announced impressive financial results for the third quarter ended December 31, 2025, showcasing significant year-on-year growth across key metrics. The company's net profit surged by 20% to reach Rs 75.14 crore, compared to Rs 62.56 crore recorded in the corresponding quarter of the previous fiscal year.
Robust Growth in Disbursements and Assets Under Management
During the third quarter of FY26, disbursements witnessed a healthy increase, rising to Rs 1,740.79 crore from Rs 1,691.86 crore in the year-ago period. This growth reflects the company's expanding market presence and customer demand for its financial products.
Assets under management (AUM) demonstrated remarkable expansion, growing by 18% to Rs 18,880 crore as of December 31, 2025. This marks a substantial increase from Rs 15,958 crore reported a year earlier, highlighting the company's effective asset accumulation strategies.
Emerging Business Segment Shows Exceptional Performance
The Emerging Business (EB) segment, which encompasses affordable housing finance and small-ticket working capital loans, emerged as a standout performer during the quarter. Q3 disbursements in this segment more than doubled to Rs 165 crore, a significant leap from Rs 62 crore in the same quarter last year.
For the nine-month period ended December 31, 2025, the company maintained its growth momentum with net profit increasing by 23% to Rs 212 crore, compared to Rs 173 crore in the previous year. Disbursements for this period also showed improvement, reaching Rs 4,911 crore against Rs 4,588 crore earlier.
Strategic Expansion and Future Outlook
Sundaram Home Finance has continued to expand its operational footprint while maintaining focus on its core prime home finance portfolio. The company opened over 15 branches during the quarter, strengthening its physical presence across key markets.
D. Lakshminarayanan, Managing Director of Sundaram Home Finance, commented on the company's performance, stating, "The Emerging Business segment has been an important growth driver in the first nine months, with disbursements in this period almost tripling to Rs 394 crore."
Looking ahead, the company plans to strengthen its prime home finance business beyond metropolitan areas while scaling up the Emerging Business segment. Lakshminarayanan emphasized the strong growth potential in smaller towns, indicating a strategic shift towards tier-2 and tier-3 markets.
The company has set ambitious targets for the coming period, expressing confidence in reaching 100 branches and achieving Rs 500 crore in EB disbursements by the end of the fiscal year. This expansion strategy aligns with the growing demand for housing finance solutions across diverse market segments in India.
