Sammaan Capital Ltd Shares Jump on Aggressive Turnaround Plan

Shares in Sammaan Capital Ltd jumped over ten percent on Thursday, May 21st. It’s a big move, especially for a mortgage lender, and it seems the market was really energized by the results they just released for the March 2026 quarter. They didn't just report numbers; they laid out this aggressive plan for turning things around, backed by some fresh cash and a serious push toward diversifying what they do.

On the NSE, the stock was up about 10.56%, trading around Rs 157.91 when the market opened up around 10:15 am. That kind of immediate reaction tells you something, doesn't it? Investors are looking past the immediate pain and focusing on the pivot.

The actual earnings report itself was heavy. Sammaan Capital posted a consolidated net loss of Rs 8,101.4 crore for that quarter. That figure was much wider than what they posted last year—Rs 324.04 crore. Why the huge difference? It boils down to those one-time adjustments. They had to clean up some legacy stressed loans. That’s where the big loss came from.

They mentioned that the capital infusion from Abu Dhabi’s IHC Group played a huge role here. It helped them write off and set aside provisions for those old, stressed assets. The result? Both their gross and net non-performing assets, those bad spots on the books, dropped to zero by the end of the March quarter. That’s a massive clean-up, even if the bottom line looked ugly on paper initially.

Then you look at the income side. The net interest income, which is just the money they made versus what they spent on interest, took a massive hit. It plummeted by 92% year-on-year. It landed at just Rs 84.3 crore for the March quarter. That’s a huge drop compared to Rs 1,057.2 crore they made a year ago. It’s a stark reality check on how the lending environment is playing out right now.

And don't forget the other liabilities. They also had impairment charges hitting financial instruments—that was Rs 2,958.1 crore. Plus, some exceptional items added another chunk, reaching Rs 6,499.1 crore during that period. It’s a lot of noise, a lot of financial cleanup happening behind the scenes.

But here’s where the mood shifted. Despite those weak earnings numbers, investors seemed to latch onto the forward-looking stuff. They focused on the improved balance sheet profile and the strategy moving forward. It’s about the future, not just the immediate quarterly dip.

Sammaan Capital is talking about the next few years. For financial year 2027, they are aiming for some real structural change. They expect their marginal cost of funds to start dropping immediately—by 160 basis points. And that trend is supposed to continue, potentially dropping by as much as 270 basis points over time, assuming their credit ratings keep improving. That’s the long game, trying to fix the cost structure.

They are changing how they lend too. Right now, they are focused on existing mortgage products. The plan is to push the share of those existing mortgages up to nearly 80% of all disbursements over the next two years, FY27-FY28. That’s a focus on stability, keeping the core business steady. But the real diversification is coming next. They are planning to step into entirely new areas. Gold loans, business loans, personal loans, unsecured retail lending, and even loans against securities. It’s a huge pivot away from just mortgages.

The rating agencies noticed this shift. All three major domestic rating agencies actually upgraded the company’s rating to AA+. That matters. It means their borrowing profile got stronger. Funding access, which is always a headache for lenders, looks better now.

Liquidity is another big point they highlighted. They aren't just making money; they have the cash to handle things. Their Capital Adequacy Ratio stood at 20.3%. The Liquidity Coverage Ratio came in at 139%. That’s significantly above the 100% regulatory floor. That level of liquidity gives them breathing room, which is crucial when you’re dealing with volatile asset classes.

Gagan Banga, the managing director and CEO, put some words to this. He said Sammaan Capital is entering a completely new chapter. He framed it as more than just a lender. He said, “With IHC Group as our Promoter, we are no longer just a well-capitalised lender — we are an institution built for scale.” It sounds like they are aiming for something much bigger, something institutional, not just a regional bank.

This optimism, this belief in the scale, is what really drove the stock price up even further after the announcement. Shares were trading 8.3% higher, hitting Rs 153.61 at one point. And that’s the kicker: the stock has now turned positive on a year-to-date basis. That shift from a loss-making entity to a positive year-to-date performer, driven by strategic moves and investor confidence in the future, is a powerful story in itself. It’s messy, it’s complicated, but the market is clearly betting on the management’s ability to execute this massive turnaround.