Aptus Value Housing vs South Indian Bank Q4 FY26

Aptus Value Housing Finance delivered a strong Q4 FY26 with disbursements of ₹1,242 crore (highest ever, +17% YoY) and PAT growth of 26% YoY to ₹261 crore. AUM grew 21% YoY to ₹13,117 crore, driven by higher ticket sizes (discontinued sub-₹7 lakh loans) and expansion into Maharashtra and Odisha. Spreads improved 10bps to 9% due to lower cost of funds (8.1%). Collection efficiency rose to 100.5%, though GNPA increased to 1.52% (vs 1.19% in FY25) mainly from NBFC portfolio. Management guided for 22-24% AUM growth in FY27 and sustained ROE above 20%, supported by 60 new branches and connector channel. Risk: rising competition in Tamil Nadu and potential yield compression from calibrated lending rates.

Guidance read

AUM growth of 22-24% in FY27: Management expects sustainable AUM growth driven by new branches, higher ticket sizes, and connector channel. ROE above 20% sustainable: Management confident of maintaining ROE above 20% despite slight yield compression, supported by productivity gains. Credit cost guidance of 0.5% ±0.1%: Credit cost expected to remain in the range of 40-60 bps, consistent with FY26. Opex to AUM ratio of 2.6-2.8%: Operating expenses as a percentage of AUM to be maintained within this range, with investments in technology.

Risk read

Key risks include Intense competition in Tamil Nadu — Competitors poaching staff and high attrition could impact growth and collection efficiency in Tamil Nadu.; Yield compression from rate cuts — Calibrated lending rate reductions for incremental housing loans may reduce spreads by 15-20bps, impacting profitability.; Rising GNPA in NBFC portfolio — GNPA increased to 1.52% due to higher stress in NBFC segment (20-30bps higher than housing), requiring stronger collection efforts.; Potential increase in borrowing costs — Management noted incremental cost of funds may rise slightly, which could offset some spread benefits..

Promise ledger

Scorecard data is being built as historical quarters are processed.

South Indian Bank reported a strong Q4 FY26 with net profit of ₹408 crore (up 19% YoY) and full-year PAT of ₹1,455 crore (up 12% YoY). Asset quality improved sharply: gross NPA fell 177 bps YoY to 1.43% and net NPA to 0.29%. Slippage ratio was a record low 15 bps for the quarter. Growth was driven by a 46% surge in gold loans (now ₹24,729 crore) and a shift toward retail/MSME. NIM improved to 2.95% on better mix. Management guided for 15-16% loan growth in FY27 and expects NIM to widen further. Key risk: credit costs may rise from current unsustainably low levels (3 bps this quarter) due to geopolitical uncertainties.

Guidance read

Loan growth target of 15-16% for FY27: Management aims to grow advances at 15-16% in FY27, matching or exceeding industry growth. NIM to continue widening: NIM improved 9 bps QoQ to 2.95% in Q4; management expects further improvement from asset mix shift and deposit repricing. Positive operating leverage for third consecutive year: Management targets positive operating leverage in FY27, with revenue growth outpacing expense growth. Corporate book to reduce to ~33% of total advances: Medium-term target to bring corporate exposure down from 38% to about one-third of the loan book.

Risk read

Key risks include Credit cost normalization — Credit cost was only 3 bps in Q4, unsustainably low. Management expects it to trend upward due to geopolitical stresses.; Gold price volatility risk — A sharp drop in gold prices could erode collateral margins on the large gold loan book (₹24,729 crore). Management uses VaR and margin calls but extreme moves remain a risk.; Succession uncertainty — MD & CEO's term ends Sep 30, 2026. Board search is ongoing; any delay or unfavorable outcome could impact strategic continuity.; ECL transition impact — Transition to expected credit loss (ECL) norms may require higher provisions, though management expects no material impact..

Promise ledger

Scorecard data is being built as historical quarters are processed.