SAMMAANCAP Q4 FY26 Results Analysis: Loss Balloons to Rs. 8,101 Cr, Zero NPA Status Achieved

SAMMAANCAP reported Q4 FY26 numbers with revenue of Rs. 8,166.16 Cr (-5.30% YoY) and PAT growth of +295.20% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Sammaan Capital reported a massive Q4 FY26 loss of Rs.8,101 Cr driven by Rs.6,499 Cr exceptional loss from ARC sale and negative NII of -Rs.574 Cr as cost of funds exceeded asset yields. The company achieved Zero NPA status and received rating upgrades, but core operations remain challenged with normalized loss of Rs.1,401 Cr. Management has withdrawn all FY27 guidance, indicating transformation is still in early stages with significant execution risk.

Key Investment Insights

Key Positives

• Zero NPA achieved - GNPA and NNPA both at 0%
• CRAR strong at 20.25%, 525 bps above regulatory minimum
• Rating upgrades: CRISIL and CARE to AA+/Stable, Moody's to B1/Positive
• IHC strategic investment completed with Rs.4,561 Cr equity infusion
• Fee and commission income grew 53% YoY to Rs.193 Cr
• Net gain on derecognition grew 81.2% YoY to Rs.1,417 Cr
• Gearing maintained at 2.41x within target range of 2x-2.5x

Risk Factors

• NII turned negative at -Rs.573.69 Cr in Q4 - cost of funds exceeds yield on assets
• Exceptional loss of Rs.6,499 Cr from ARC sale and business model change
• Normalized loss of Rs.1,401 Cr in Q4 FY26 after adjusting for one-time items
• Finance costs increased 17.3% YoY while loan book contracted 19.8%
• Operating cash burn of Rs.7,466 Cr in FY26
• Loan book declined 19.8% YoY to Rs.36,026 Cr