Quarterly net earnings of Sundaram Home Finance slightly decreased to ₹62 crore
Published on July 25, 2025
Sundaram Home Finance, a wholly-owned subsidiary of Sundaram Finance Ltd, has announced its strategic expansion into Tier 2 and 3 towns across India. The company is focusing on these emerging markets with strong potential for future growth, marking a shift from its traditional South Indian base.
The company's recent expansion includes the opening of new branches in Surat, Gujarat, Ratlam, and Pithampur, Madhya Pradesh. D Lakshminarayanan, the managing director of Sundaram Home Finance, believes that these smaller towns hold significant opportunities for the company's emerging business segment, which will form the foundation for sustained future growth.
Sundaram Home Finance offers a range of loan products, including home loans, plot loans, home improvement & extension loans, loans against property, affordable housing finance, and small business loans to traders and small shops. The company has reported a 10% increase in quarterly loan disbursements, with disbursements for Q1FY26 standing at ₹1,488 crore, up from ₹1,353 crore in the same quarter of the previous year.
The company's aggressive push into non-South Indian markets and smaller urban areas is reflected in its disbursement targets. For instance, in Gujarat, Sundaram Home Finance is targeting Rs 180 crore in disbursement for 2025, up from Rs 129 crore last year.
The company's expansion strategy is supported by strong Assets Under Management (AUM) growth. AUM for Sundaram Home Finance stood at ₹18,027 crore in Q1FY26, a 24% rise. The company reported a net profit of ₹62 crore for Q1FY26, although this is a decrease compared to ₹66 crore in the same quarter of the previous year.
Despite the decrease in net profit, the company's focus on Tier 2 and 3 towns for expansion seems to be paying off. Sundaram Home Finance is confident that its strategic expansion will contribute to a sustainable growth engine in these smaller markets.
[1] Source: Business Standard [2] Source: Financial Express [3] Source: Moneycontrol
- In a strategic move to tap emerging markets with substantial growth potential, Sundaram Home Finance, a business division of Sundaram Finance Ltd, has ventured into Tier 2 and 3 towns across India, marking a shift from its traditional South Indian base.
- To further boost its business segment, Sundaram Home Finance has opened new branches in Surat, Gujarat, Ratlam, and Pithampur, Madhya Pradesh, targeting significant opportunities in smaller towns.
- The company offers an array of loan products such as home loans, plot loans, loans against property, affordable housing finance, and small business loans for traders and small shops, with a reported 10% increase in quarterly loan disbursements.
- In alignment with this expansion, Sundaram Home Finance has set ambitious disbursement targets for 2025, with a goal of ₹180 crore in Gujarat, representing a substantial growth compared to the previous year.
- The company's recent focus on Tier 2 and 3 towns is supported by strong Assets Under Management (AUM) growth, reaching ₹18,027 crore in Q1FY26 – a 24% rise – and despite the decrease in net profit in Q1FY26, the company remains confident in its strategic expansion, anticipating sustainable growth in these smaller markets.
[1] Reference: Business Standard [2] Reference: Financial Express [3] Reference: Moneycontrol
