Sammaan Capital Ltd: 4Q clean‑up hits earnings, franchise strengthens; MW on execution risks

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Sammaan Capital Ltd: 4Q clean‑up hits earnings, franchise strengthens; MW on execution risks

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Sammaan Capital Ltd

4Q clean‑up hits earnings, franchise

strengthens; MW on execution risks

Earnings Review

4QFY26 hit by clean‑up; loan book, ratings strengthen 21 May 2026

Sammaan Capital Ltd.’s (IHFLIN) 4QFY26 was dominated by a one‑time clean‑up of Global Emerging Markets | Corporate

legacy exposures, while underlying franchise metrics improved. Reported consolidated Credit

loss of INR81bn in the quarter was driven by a INR65bn exceptional charge from Asia | India

Financial Servicesreclassification and resolution of non‑core exposures, alongside elevated provisions

including INR18.5bn management overlay under a conservative ECL framework. Rachna Jain, CFA

Operationally, revenue declined by 37% sequentially while finance costs remained Research Analyst

Merrill Lynch (Singapore)

elevated at +15% QoQ, though asset quality improved with the company achieving zero +65 6678 2972

GNPA/NNPA for its INR532bn AUM (-15% YoY) at end-FY26 post write‑offs and rachna.jain2@bofa.com

resolution actions. Management emphasized that the residual book is fully provided for. Jing Peng

Research Analyst

Liquidity and capital strengthened materially following large equity infusion from IHC, Merrill Lynch (Hong Kong)

supporting balance sheet fortification and funding flexibility. All key domestic rating jing.peng2@bofa.com

agencies upgraded the company to AA+ level on domestic rating scale during and post

4Q. Overall, positioning the company for lower cost of domestic funds and potentially

normalized profitability going forward. Exhibit 1: MW IHFLIN

Indian HY NBFCs: Trading levels

Strategy: Calibrated growth, cost and digital optimization Ask YTW