NewsHome First Finance Company India Limited Releases Q4FY26 Earnings Conference Call TranscriptHome First Finance Company India Limited Releases Q4FY26 Earnings Conference Call Transcript
Home First Finance Company India Limited released its Q4 and FY26 earnings conference call transcript, disclosing FY26 PAT of ₹540 crores (up 41.40% YoY), AUM of ₹15,878 crores (up 24.90% YoY), and record Q4 disbursements of ₹1,572 crores. Asset quality improved with Gross Stage 3 at 1.80% and credit cost at 40bps, while CRAR stood at 44.10% and management guided to ~25% AUM growth for FY27.
*this image is generated using AI for illustrative purposes only.
Home First Finance Company India Limited has released the transcript of its Q4 and FY26 earnings conference call held with analysts and investors for the quarter and year ended March 31, 2026. The call was conducted on May 07, 2026, and both the audio recording and transcript have been made available on the company's official website. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and was submitted to the stock exchanges by Shreyans Bachhawat, Company Secretary, Compliance Officer and Head – Legal (ACS No: 26700), on May 12, 2026.
Regulatory Disclosure
The filing was communicated to the relevant stock exchanges as detailed below:
| Exchange: | Details |
|---|---|
| BSE Limited | Department of Corporate Services, Phiroze Jeejeebhoy Towers, Dalal Street, Fort, Mumbai – 400001 |
| National Stock Exchange of India Limited | The Listing Department, Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400051 |
The management participants on the call included Mr. Manoj Viswanathan, Managing Director and Chief Executive Officer; Ms. Nutan Gaba Patwari, Chief Financial Officer; and Mr. Sunil Anjana, Head of Treasury and Investor Relations.
FY26 Financial Highlights
MD & CEO Manoj Viswanathan described FY26 as a year of resilience and disciplined execution, highlighting record disbursements in Q4, strong profit growth, improving asset quality, and a well-capitalised balance sheet. The key financial metrics for the quarter and full year are summarised below:
| Metric: | Q4FY26 | FY26 |
|---|---|---|
| Total Income | ₹505 crores (up 21.30% YoY, 4.40% QoQ) | — |
| Pre-Provision Operating Profit | ₹212 crores (up 44.90% YoY) | — |
| Profit After Tax (PAT) | ₹149 crores (up 42.70% YoY, 6.60% QoQ) | ₹540 crores (up 41.40% YoY) |
| Assets Under Management (AUM) | ₹15,878 crores (up 24.90% YoY, 6.40% QoQ) | — |
| Disbursements | ₹1,572 crores (up 23.50% YoY, 19.30% QoQ) | ₹5,424 crores (up 12.90% over FY25) |
| Net Interest Margin (NIM) | 5.90% | ~5.70% |
| Cost-to-Income Ratio | 32% (improved 10bps QoQ) | 32.50% (improved 330bps YoY) |
| Return on Assets | — | 3.90% |
| Return on Equity (Reported) | — | 15.70% |
| Adjusted ROE (Pre-money) | — | 16.80% |
| Net Worth | — | ₹4,357 crores |
| Book Value per Share | — | ₹418 |
| CRAR | — | 44.10% (Tier I: 43.80%) |
CFO Nutan Gaba Patwari noted that the cost-to-income improvement of 330 basis points for FY26 was achieved alongside continued investments in distribution, headcount, and technology. The full-year opex included a one-time gratuity provision of ₹3.3 crores recorded in Q3FY26, arising from the implementation of the new labour code. Operating cost to assets stood at 2.70% for both the quarter and the full year, with management guiding this ratio to remain broadly range-bound within 2.60% to 2.70%.
Asset Quality and Provisioning
Management highlighted a pronounced improvement in portfolio quality during the quarter, driven by tighter early bucket collection discipline and resolution intensity. The asset quality metrics are presented below:
| Asset Quality Metric: | Q4FY26 | Sequential Change |
|---|---|---|
| 1+ DPD | 4.70% | Down 60bps |
| 30+ DPD | 3.20% | Down 50bps |
| Stage 2 | 1.40% | Down 30bps |
| Gross Stage 3 | 1.80% | Down 20bps |
| Provision Coverage Ratio | 44.90% | — |
| Stage 3 Provision | 24% | Up from 22% in Dec'25 |
| Credit Cost (Q4 and FY26) | 40bps | — |
Viswanathan noted that early indicators from April showed better collection outcomes compared to the same month in the previous two years, and that no significant impact from the ongoing conflict in the Middle East had been observed. Guidance on credit cost for the coming year was maintained at 30bps to 40bps.
Borrowings, Capital, and Liability Profile
As of March 2026, the company's funding profile remained well diversified, with 59% from private and public banks, 15% from NHB, 20% from assignment and co-lending, and the balance from NCDs, ECBs, and NBFCs. Incremental borrowing costs during Q4 stood at approximately 7.60%, and the cost of borrowing (excluding co-lending) contracted by 10 basis points to 7.90%. The spread (excluding co-lending) remained healthy at 5.30%, with management guiding to maintain a spread in the range of 5% to 5.25%.
During Q4, the company executed a direct assignment transaction of ₹264 crores. Co-lending disbursements for FY26 doubled from ₹153 crores in FY25 to ₹307 crores, with the co-lending book growing to ₹593 crores, representing 3.70% of AUM. Following the ₹1,250 crores QIP completed in April 2025, the CRAR stood at 44.10% with Tier I at 43.80%, compared to 32.80% and 32.50% respectively as of March 2025 (prior to the QIP).
Distribution, Technology, and Strategic Outlook
During Q4, the company added 6 new branches and 5 touch points, expanding the network to 171 branches and 373 touch points. Net headcount additions of 221 employees during FY26, largely in customer-facing roles, took total headcount to 1,855. Origination yield remained at 13%, with an 83% share of individual housing loans. Management guided to approximately 25% year-on-year AUM growth for FY27, with a branch addition target of 30 to 40 branches annually.
On technology, Viswanathan highlighted the company's AI strategy anchored on three outcomes: elevating customer experience, enhancing employee productivity, and driving structural cost efficiencies. Proprietary AI agents for income assessment and contextual bank statement analysis have been operationalised, while AI-led interventions in lead qualification, legal and technical evaluation, and bureau analysis are currently in pilot. On sustainability, the company certified 140 additional homes under its green homes initiative during the quarter, taking the cumulative total to 450 as of March 2026.
Historical Stock Returns for Home First Finance Company
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.85% | +3.86% | -1.59% | -1.06% | -4.86% | +110.59% |
How might Home First Finance's aggressive 25% AUM growth target for FY27 be affected if interest rates rise or housing demand softens in tier-2 and tier-3 markets?
With co-lending disbursements doubling year-over-year, which banking partners is Home First Finance likely to deepen relationships with, and could co-lending eventually exceed 10% of AUM?
Given the company's significantly elevated CRAR of 44.10% post-QIP, is management considering deploying excess capital through acquisitions, accelerated branch expansion, or a special dividend to improve return on equity?
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