Home First Finance Reports Strong Q1FY27, Noting 34.5% Y-o-Y Growth in Profit After Tax

Home First Finance Reports Strong Q1FY27, Noting 34.5% Y-o-Y Growth in Profit After Tax​

Home First Finance Company India Limited has reported robust financial and operational performance for the quarter ending June 30, 2026, driven by strong demand in the affordable housing sector. The company recorded a significant jump in profitability while maintaining stable asset quality amidst rapid growth in its Assets Under Management (AUM) and disbursements.

The firm's AUM reached ₹ 16,938 crore for the quarter, marking a 25.7% growth year-on-year (y-o-y) and a 6.7% sequential growth (q-o-q). Disbursals also reached a record ₹ 1,628 crore, reflecting a 31.0% y-o-y rise and 3.6% q-o-q increase.

Profitability saw strong expansion. Profit after tax (PAT) stood at ₹ 160 crore, which is 34.5% higher year-on-year and 7.0% quarter-on-quarter. Total Income for the period was ₹ 540 crore, up 18.6% y-o-y and 7.0% q-o-q. The company reported a Return on Assets (ROA) of 4.2%, reflecting a 50 basis points (bps) increase year-on-year.

Operational Strengths and Asset Management

The expansion efforts led to the addition of four new branches during the quarter, bringing the total network size to 175 branches. The company maintains 373 touchpoints across its operations and has a presence in 13 States/Union Territories. Focus remains on housing loans, which constitute 83% of AUM, with the EWS / LIG category accounting for approximately 58% of the total AUM.

Asset quality remained stable despite high growth rates. The company reported that Gross Stage 3 (GNPA) stood at 1.8%, consistent quarter-on-quarter. Other key metrics included 1+ DPD at 4.7% and 30+ DPD at 3.2%. Credit cost was well contained at 40 basis points for the quarter, a reflection of the underwriting framework and collection capabilities.

Financial Stability and Funding Profile

The company's financial stability was highlighted by its capital adequacy metrics. Total CRAR stood at 42.6% as of June 2026, with Tier I capital at 42.2%, compared to 44.1% total CRAR and 43.8% Tier I capital in March 2026. Net worth increased to ₹ 4,483 crore as of June 2026, up from ₹ 3,855 crore in June 2025.

In terms of funding, total borrowings, including debt securities, stood at ₹ 10,818 crore as of June 2026. The company maintained a liquidity buffer of ₹ 2,272 crore during the period. The spread ex co-lending was reported at 5.3%, showing stability quarter-on-quarter and an improvement of 20 bps year-on-year.

Management Commentary

Manoj Viswanathan, MD & CEO, commented that the strong domestic operating environment, supported by stable consumption and improved liquidity, created a favourable backdrop for credit growth. He stated that profitability remained healthy, with Net Total income increasing to ₹ 332 crore, up 29.9% y-o-y and 7.1% quarter-on-quarter, alongside a steady ROA of 4.2%.

The company continued investing in its distribution capabilities and maintained disciplined execution. Viswanathan noted that the Green Homes initiative saw an additional 100 homes certified during the quarter, bringing the cumulative total to 550 as of June 2026. Looking ahead, the leadership remains optimistic about opportunities in the affordable housing finance sector, confident in delivering approximately 25% AUM growth while prioritizing portfolio quality and operational efficiency.

Q1FY27 Financial and Operational Summary

The following table provides a summary of key performance indicators for Q1FY27 alongside previous periods:

HOMEFIRST Stock Price Movement​

Home First Finance Company India Limited saw its stock gain today, settling at ₹1182.50 after rising by 1.19%. The equity experienced significant trading activity throughout the day, with a total traded volume reaching 149,218 shares.