Sammaan Capital shares rallied between 10% [1] and 12% [2] this week following the company's Q4FY26 results.
The surge comes despite a reported loss for the quarter, as investors reacted to a strategic cleanup of the company's balance sheet. By utilizing capital from International Holding Company (IHC), the Mumbai-based non-banking financial company reduced its non-performing assets (NPAs) to zero [1].
This financial restructuring is intended to lower the cost of borrowing and improve overall profitability. Gagan Banga, the managing director and CEO of Sammaan Capital, said the company expects its assets under management (AUM) to grow from Rs 53,160 cr to Rs 70,000 cr this year [1]. He also projected a profit of approximately Rs 1,400 cr [1].
Banga said the company's funding costs are expected to decrease. He said the cost of funds will decline by around 120 basis points very soon due to a rating upgrade [1]. Other projections suggest the cost of funds could drop by up to 250 basis points as the IHC deal closes [3].
Beyond funding costs, the company is targeting a substantial increase in profitability. Banga said margins will double as the IHC deal concludes [3]. The infusion of capital is designed to position the firm for aggressive growth in the Indian credit market, a move that has shifted investor focus away from the immediate quarterly loss.
Sammaan Capital continues to leverage the IHC partnership to stabilize its financial standing and pursue higher AUM targets for the current fiscal year.
“Sammaan Capital shares rallied between 10% and 12% this week following the company's Q4FY26 results.”
The market reaction indicates that investors are prioritizing long-term balance sheet health and growth potential over short-term quarterly losses. By eliminating NPAs and securing a capital partnership with IHC, Sammaan Capital is attempting to lower its cost of capital, which is a critical driver of profitability for non-banking financial companies in India's competitive lending environment.
