Sundaram Home Finance Q2 Net Profit Rises 20% to ₹90 Crore as Small-Town Lending Gains Momentum

Chennai, November 3, 2026: Sundaram Home Finance reported a 20% year-on-year increase in net profit to ₹90 crore for the second quarter ended September 30, 2026, supported by higher loan disbursements and growing demand in smaller towns. The company had posted a net profit of ₹75 crore in the corresponding quarter last year.

Overall disbursements rose 31% to ₹2,199 crore during the quarter, compared with ₹1,681 crore in the same period of the previous financial year. The growth reflects an improvement in lending activity across the company’s housing finance business, including its expanding presence in emerging markets.

The company’s assets under management (AUM) also recorded steady growth. AUM increased 14% to ₹21,213 crore as of September 30, 2026, against ₹18,572 crore a year earlier.

Emerging Business disbursements jump 63%

A significant part of the quarterly performance came from the Emerging Business segment, which includes affordable housing finance and small-ticket loans. Disbursements in this segment increased 63% to ₹238 crore in the September quarter, up from ₹146 crore in the corresponding period last year.

The expansion of the company’s branch network in smaller towns has been a key contributor to this growth. Sundaram Home Finance has added close to 50 branches over the past 12 months, strengthening its reach across South India.

Managing Director D. Lakshminarayanan said the company’s Emerging Business disbursements nearly doubled during the first half of the financial year, reaching ₹418 crore. He attributed the performance to the expansion of the branch network across smaller markets in the southern region.

First-half profit increases 29%

For the six months ended September 30, 2026, Sundaram Home Finance recorded a 29% increase in net profit to ₹175 crore, compared with ₹136 crore in the corresponding period last year.

Disbursements during the first half rose 22% to ₹3,864 crore from ₹3,170 crore a year earlier. The growth indicates continued lending momentum across the company’s business segments.

Small towns remain central to expansion strategy

Looking ahead, the company expects housing demand in the mid-income segment to remain firm, with smaller towns continuing to contribute to market activity.

Lakshminarayanan said the company has established more than 120 branches for its Emerging Business operations and plans to use this network to sustain growth during the second half of the financial year. It also intends to continue investing in infrastructure across Tier 3 and Tier 4 towns in South India.

Sundaram Home Finance offers home loans, plot loans, home improvement and extension loans, affordable housing finance, loans against property and small-ticket loans to entrepreneurs. Its latest results highlight the growing role of smaller markets in its lending strategy as it expands its regional presence.