Truhome Finance IPO

Strengths · 8

• 01Assets under management of Rs 21,124.33 crore as at 31 December 2025, grown at a CAGR of 48.58% over the Financial Years 2023 to 2025, which the CRISIL report calls the fastest among its identified peers, and the third largest affordable housing finance company in India by assets under management.
• 02A pan-India network of 216 branches across 19 states and union territories as at 31 December 2025, with no single state accounting for more than 18% of assets under management.
• 03Gross NPA of 1.60% and net NPA of 1.09% as at 31 December 2025.
• 04Capital to risk-weighted assets ratio of 37.76% as at 31 December 2025, up from 36.28% at the end of FY2025 and 24.38% at the end of FY2024.
• 05Rated AA (Stable) by CRISIL, India Ratings and CARE Ratings as at 31 December 2025, with the average cost of borrowing down to 8.85% annualised from 9.16% in FY2024 and a liquidity coverage ratio of 205.50%.
• 06Profit after tax of Rs 333.54 crore in the nine months to 31 December 2025, already above the Rs 286.24 crore reported for the whole of FY2025.
• 07The second most cost-efficient affordable housing finance company on operating expenses to disbursements among the peers identified by CRISIL for the nine months ended 31 December 2025.
• 08There are no qualifications in the joint statutory auditors' reports that have not been given effect to in the restated summary statements.

Risks · 10

• 01Of the total offer of Rs 3,000.00 crore, Rs 1,500.00 crore is an offer for sale by the promoter Mango Crest Investment Ltd, and the company receives nothing from that part.
• 02Self-employed customers were 76.96% of assets under management as at 31 December 2025 and 77.08% at the end of FY2025, which the document says exposes the company to higher credit and collection risks.
• 03The loan book is concentrated in two products, with housing loans at 57.37% and loans against property at 39.22% of assets under management as at 31 December 2025.
• 04Maharashtra, Gujarat and Tamil Nadu together made up 49.70% of assets under management as at 31 December 2025.
• 0571.14% of total outstanding loan accounts as at 31 December 2025 were sourced through direct selling agents and connectors, against 71.20% at the end of FY2025.
• 06The debt to equity ratio was 3.22 times as at 31 December 2025 and total borrowings were Rs 13,487.86 crore, so the business needs constant access to funding.
• 07Gross NPA rose to 1.60% as at 31 December 2025 from 1.03% at the end of FY2024 and 0.93% at the end of FY2023, and net NPA to 1.09% from 0.80% and 0.70%.
• 08Assets under management grew at a CAGR of 48.58% between the Financial Years 2023 and 2025 and the document states that this rate may not continue, while disbursements fell 6.07% in FY2025 to Rs 7,129.73 crore.
• 09Return on equity was 11.62% annualised for the nine months to 31 December 2025 and 10.68% in FY2025, down from 13.49% in FY2024.
• 10Outstanding against the company are 6 criminal proceedings, 38 tax claims, 2 statutory or regulatory proceedings and 4 material civil litigations involving an aggregate of Rs 228.71 crore, and contingent liabilities as at 31 December 2025 were Rs 57.22 crore of income tax and Rs 5.90 crore of GST.

Truhome Finance Limited was founded in 2010 and was earlier known as Shriram Housing Finance Limited. It is a retail-focused affordable housing finance company, registered as a non-deposit-taking housing finance company with the National Housing Bank. The registered office is on Cenotaph Road in Alwarpet, Chennai, and the corporate office is at Wockhardt Towers in the Bandra Kurla Complex, Mumbai. Its promoter is Mango Crest Investment Ltd, a subsidiary of Mulberry Inlet Investment Ltd, a company owned by private equity funds and vehicles managed, advised by or affiliated with Warburg Pincus LLC.

The company offers a suite of secured lending products. Housing loans were 57.37% of assets under management as at 31 December 2025 and loans against property were 39.22%. Assets under management stood at Rs 21,124.33 crore as at 31 December 2025, against Rs 17,763.97 crore at the end of FY2025, Rs 13,761.68 crore at the end of FY2024 and Rs 8,046.60 crore at the end of FY2023. The average ticket size was Rs 2.13 million as at 31 December 2025. Disbursements were Rs 6,382.45 crore in the nine months to 31 December 2025 against Rs 7,129.73 crore in all of FY2025.

The target customer is the creditworthy self-employed borrower, with typical housing finance requirements of Rs 1.50 million to Rs 3.50 million. Self-employed customers were 76.96% of assets under management as at 31 December 2025 and 77.08% at the end of FY2025. Lending runs through a pan-India network of 216 branches across 19 states and union territories, up from 178 branches and 18 states at the end of FY2025. No single state accounted for more than 18% of assets under management as at 31 December 2025, though Maharashtra, Gujarat and Tamil Nadu together made up 49.70%. Sourcing leans on intermediaries, with 71.14% of total outstanding loan accounts coming through direct selling agents and connectors.

The company had 5,095 employees as at 31 December 2025, up from 4,188 at the end of FY2025 and 1,753 at the end of FY2023. Branch productivity, measured as assets under management per average branch, was Rs 107.23 crore and employee productivity was Rs 4.55 crore as at 31 December 2025. A dedicated in-house technology team of 22 personnel covers development, analytics, infrastructure and information security.

The board is chaired by Dinesh Kumar Khara as Chairman and Non-Executive Director. Subramanian Jambunathan, also known as Ravi Subramanian, is the Managing Director and Chief Executive Officer and has over 30 years of experience in financial services, with the Shriram group since 2010 and with the company since 2018. Key managerial personnel and senior management have on average 23 years and 24 years of industry experience respectively, and eight years with the company as at 31 December 2025. The company is rated AA (Stable) by CRISIL, India Ratings and CARE Ratings.

The industry

The CRISIL report in the document describes a housing finance framework made up of scheduled commercial banks, housing finance companies and non-banking financial companies, with banks holding a large share of housing loans and housing finance companies serving specific borrower segments, geographies and ticket sizes, particularly self-employed borrowers. Housing loans recorded a CAGR of 14.48% between the Financial Years 2021 and 2025 and are expected to grow at a CAGR of 10.00% to 12.00% through the Financial Year 2028, helped by rising ticket sizes, income growth, urbanisation and government support for affordable housing. CRISIL Intelligence estimates India's housing shortage at 61.5 million units in 2025, rising to 64 million by 2030. India's mortgage-to-GDP ratio was 12.18% in 2025 against 76.00% in the United States, which the report reads as room for housing finance companies to expand.

Customer concentration: This is a retail lender with an average ticket size of Rs 2.13 million as at 31 December 2025, so there is no single large customer. The concentration sits in geography and borrower type, with Maharashtra, Gujarat and Tamil Nadu making up 49.70% of assets under management and self-employed customers 76.96%.