India Shelter Finance reports rising assets and profit amidst loan recognition shift

India Shelter Finance Corporation saw a 24% year-on-year increase in assets under management to ₹11,284 crore in Q1 FY27, with profits rising despite a change in loan disbursement recognition method, indicating resilience in the affordable housing finance sector.

India Shelter Finance Corporation said its assets under management rose 24% year on year to ₹11,284 crore in the quarter ended June 30, as the affordable housing lender opened FY27 with higher profit and stable margins.

According to the company’s unaudited results released on August 7, profit after tax climbed 20% to ₹143 crore, while return on assets came in at 5.8% and return on equity at 17.5%. The lender also reported a spread of 6.6% and operating expenses equal to 4.0% of gross assets under management.

The company said disbursements for the quarter were ₹641 crore, down from ₹1,040 crore in the previous quarter, after it changed the way it recognises loans from cheque handover to cheque realisation. Management said that the shift was intended to strengthen controls and would have only a one-time effect on reported figures; disbursements at clearance were ₹1,046 crore. India Shelter also said its gross Stage 3 assets rose to 1.5% from 1.2% a year earlier, while net Stage 3 assets were 1.2%.

The latest update follows a strong FY26, when India Shelter reported full-year profit after tax of ₹503 crore, up 33%, and gross assets under management of ₹11,044 crore, up 29%, according to earlier company disclosures carried by Business Standard and other financial data services. The lender, which focuses on low- and middle-income borrowers in tier two and tier three markets, said it continues to operate through a network of 307 branches across 15 states and held liquidity of ₹2,423 crore at the end of June.