Shares of Sammaan Capital rose nearly 7% on Thursday, May 21, even after the company reported a consolidated net loss of Rs 8,101 crore for Q4 FY26, as investors appeared to focus on the lender’s balance sheet cleanup, strategic transformation, and fresh capital backing.
The stock surged 6.69% to Rs 151.28 on the NSE in early trade.
Sammaan Capital, formerly known as Indiabulls Housing Finance, posted a sharp reversal from a profit of Rs 324 crore in the year ago quarter. Total income for Q4 FY26 declined 36% year on year to Rs 1,361 crore from Rs 2,132 crore.
The company also swung into losses sequentially from a net profit of Rs 314 crore reported in Q3 FY26.
The weak quarterly performance was primarily driven by large exceptional losses, elevated impairment charges, and additional expected credit loss provisions.
Total expenses during the quarter surged to Rs 4,959 crore compared with Rs 1,739 crore in the previous quarter and Rs 1,677 crore a year ago. Impairment on financial instruments stood at Rs 2,958 crore against a write back of Rs 25.2 crore in Q3 FY26.
Finance costs also increased sequentially to Rs 1,679 crore from Rs 1,458 crore.
The company reported an exceptional loss of Rs 6,499 crore related to identified non core exposures and sale of assets to an asset reconstruction company. Pre tax loss for the quarter stood at Rs 10,097 crore compared with a profit of Rs 455 crore in Q4 FY25.
Sammaan Capital said it changed the business model for identified non core loan assets and investments worth Rs 14,953 crore as part of its transition toward a retail focused lending model. The move led to fair valuation losses and asset sales to an ARC.
The lender also recognised an additional management overlay provision of Rs 1,850 crore under the Ind AS 109 expected credit loss framework due to macroeconomic and sector specific risks.
Basic and diluted EPS for the quarter came in at negative Rs 99.10 per share.
For FY26, consolidated total income declined to Rs 8,190 crore from Rs 8,683 crore in FY25. The company reported a full year net loss of Rs 7,145 crore compared with a loss of Rs 1,807 crore in the previous year.
Despite the massive quarterly loss, investor sentiment remained positive after the company highlighted strategic restructuring efforts and capital infusion plans.
During the year, Sammaan Capital completed a strategic investment transaction with Abu Dhabi based IHC through Avenir Investment RSC Ltd involving a committed investment of Rs 8,850 crore.
The company also received ratings upgrades from CRISIL and CARE during and after the quarter, which likely supported market confidence in its long term restructuring strategy.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions.