Sundaram Home Finance Reports 20% Rise in Q2 Net Profit to ₹90 Crore

Sundaram Home Finance has reported a net profit of ₹90 crore for the second quarter ended September 30, 2026. This marks a 20 per cent increase compared to the ₹75 crore recorded in the corresponding quarter of the previous financial year.

Alongside the growth in net profit, the company's overall disbursements went up by 31 per cent to reach ₹2,199 crore, compared to ₹1,681 crore in the same period last year. Total Assets Under Management (AUM) saw a 14 per cent increase, rising to ₹21,213 crore from ₹18,572 crore.

Growth was particularly notable in the company's Emerging Business segment, which includes affordable housing finance and small-ticket loans. Disbursements from this segment grew by 63 per cent to ₹238 crore, up from ₹146 crore in the previous year.

D Lakshminarayanan, Managing Director of Sundaram Home Finance, attributed the performance to network expansion. During the first half of the year, the company expanded its branch network into small towns across the South market, adding close to 50 new branches over the last 12 months. This expansion contributed to nearly doubling the Emerging Business disbursements in the first half to ₹418 crore.

Discussing the outlook for the second half of the financial year, Lakshminarayanan noted that housing demand in the mid-segment remains robust, with volumes largely driven by small towns. With over 120 Emerging Business branches now established, the company plans to maintain its growth momentum and continue investing in infrastructure across Tier 3 and Tier 4 towns in South India.

Sundaram Home Finance offers a range of financial products, including home loans, plot loans, home improvement and extension loans, affordable housing finance, loans against property, and small-ticket loans aimed at entrepreneurs.

"The performance of Sundaram Home Finance highlights the growing economic potential of Tier 3 and Tier 4 towns in South India. By strategically expanding their branch network into smaller markets and focusing on affordable housing and small-ticket loans, they have successfully captured localized demand. This approach of deepening penetration in regional areas rather than relying solely on major urban centers provides a sustainable model for financial institutions looking to scale their loan portfolios effectively." — Dr. Shishir Gupta, Founder & CEO, StartupLanes