The stock has gained nearly 22% over the past three months, of which 10% came after the declaration of second-quarter numbers on October 18. The broader financial services index has gained over 9% in three months and 2% since October 18.

The housing finance company is likely to improve AUM growth to over 15% in FY27 from the expected 12% for the current fiscal year, supported by expansion in northern regions and a recovery in existing southern markets. It opened 32 new branches in the September quarter, taking the total number to 248. The lender is focused on strengthening its presence beyond the southern states where it has historically been strong.

In the September quarter, the proportion of branches and loan portfolio in the southern region fell to 54% and 71%, from 60% and 73% respectively a year ago. This helped the company maintain momentum in assets under management despite slower loan disbursement in Karnataka and Telangana. Outside key geographies, the lender continues to see strong growth in the eastern and northern states at over 30%, while Tamil Nadu and western states are showing growth of around 25%, according to a research report.

The company expects to raise the share of incremental disbursements in the northern region to 40% by March 2028, up from 32% at the end of September 2025. Disbursements rose 26% year-on-year and 7% sequentially to ?2,545 crore. The pace of growth may moderate at the company level, but this is expected to be temporary.

The gross non-performing asset (NPA) ratio remained below 1% in the September quarter due to lower provisioning and easing delinquencies. NPAs in the salaried portfolio fell sharply from ?627 million to ?372 million, reflecting stronger repayment trends and improving asset quality, according to another research note. Gross NPAs are expected to stay within the 0.9–1% range in the near term.

The net interest margin (NIM) expanded to 4% in the September quarter from 3.6% a year earlier amid softening borrowing costs. Analysts expect NIM to remain around 4% for FY26. Earnings estimates for FY26 have been revised upward by around 5% to account for higher NIMs and lower credit costs. Advances and net profit are projected to grow at a CAGR of around 13% over FY25–28, with return on assets expected to remain above 2.2%. The stock ended 0.6% lower at ?886.4 on Thursday.

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