Home First Finance Company India Limited convened its Board of Directors meeting on Wednesday, May 06, 2026, and approved the Audited Financial Results for the quarter and year ended March 31, 2026. The board also recommended a final dividend and approved several key governance and corporate actions. The meeting commenced at 2:00 P.M. and concluded at 5:20 P.M., with results audited by M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration No.: 101248W/W-100022), who issued an unmodified audit opinion.

Financial Performance: Quarter and Full Year

Home First Finance Company India Limited delivered a strong financial performance for the year ended March 31, 2026. Total income grew to Rs. 19,227.22 million from Rs. 15,392.03 million in the previous year. Profit after tax for the full year stood at Rs. 5,403.83 million, compared to Rs. 3,820.68 million in the prior year. The following table summarises the key financial metrics:

Finance costs for the full year were Rs. 7,923.22 million, while impairment on financial instruments stood at Rs. 568.78 million. Employee benefits expense for the year was Rs. 2,487.02 million, which includes an increase of Rs. 32.99 million on account of the New Labour Codes enacted by the Government of India.

Balance Sheet Highlights

The company's total assets grew to Rs. 1,51,665.38 million as at March 31, 2026, from Rs. 1,22,116.72 million as at March 31, 2025. The loan book expanded to Rs. 1,31,326.13 million from Rs. 1,06,487.00 million. Total equity stood at Rs. 43,565.39 million, supported by equity share capital of Rs. 208.66 million and other equity of Rs. 43,356.73 million.

During the year, the company raised Rs. 12,500 million through a Qualified Institutions Placement, allotting 1,28,86,597 equity shares of face value Rs. 2 per share at Rs. 970 per share. Additionally, 13,85,880 equity shares were allotted to employees under approved employee stock option schemes during the year.

Cash Flow Summary

For the year ended March 31, 2026, the company reported net cash used in operating activities of Rs. 19,397.84 million, compared to Rs. 21,964.18 million in the prior year. Net cash used in investing activities was Rs. 4,081.38 million. Net cash generated from financing activities stood at Rs. 21,974.96 million, driven primarily by proceeds from equity issuance and borrowings. Cash and cash equivalents at the end of the year were Rs. 4,487.02 million, compared to Rs. 5,991.28 million at the beginning of the year.

Dividend and Capital Raising

The Board recommended a final dividend of Rs. 5.20 per equity share, representing 260% of the face value of Rs. 2 per share, for the year ended March 31, 2026. This compares to Rs. 3.70 per equity share (185% of face value) recommended in the previous year. The dividend is subject to shareholder approval at the ensuing Annual General Meeting and, if declared, will be credited within 30 days of the conclusion of the AGM. The Board also approved the issuance of Non-Convertible Debentures (NCDs) not exceeding Rs. 1,000 crores by way of private placement, in one or more tranches, in accordance with the Companies Act, 2013 and SEBI Listing Regulations.

Governance and Auditor Appointments

The Board approved several governance-related decisions at the meeting. Ms. Geeta Dutta Goel (DIN: 02277155) and Mr. Anuj Srivastava (DIN: 09369327) were each approved for re-appointment as Non-Executive Independent Directors for a second term of five consecutive years, effective November 01, 2026, subject to shareholder approval at the ensuing AGM. The Board also noted that Mr. Divya Sehgal (DIN: 01775308), Non-Executive Nominee Director, has not offered himself for re-appointment at the ensuing AGM.

On the auditor front, M/s. Batliboi & Purohit, Chartered Accountants (Firm Registration No.: 101048W) — a firm established in 1907 with over 118 years of practice — was approved as Joint Statutory Auditor for a period of three years from financial year 2026-27, subject to shareholder approval. This appointment was made in compliance with RBI guidelines applicable to NBFCs with asset sizes exceeding Rs. 15,000 crores. M/s. P. Chandrasekar LLP, M/s. BDO India LLP, and M/s. Kirtane & Pandit LLP were re-appointed as joint internal auditors for financial year 2026-27, effective May 06, 2026.

Loan Transfers, Co-Lending, and RBI Resolution Framework Disclosures

During the year ended March 31, 2026, the company transferred 11,453 loans through direct assignment with an aggregate amount of Rs. 9,315.80 million and sale consideration of Rs. 8,384.22 million across 11 transactions. The weighted average remaining maturity was 193 months and the weighted average holding period after origination was 15 months. As at March 31, 2026, the company had co-lending arrangements with 5 partners, with 3,966 outstanding cases and a gross outstanding amount of Rs. 1,576.15 million, of which standard loans accounted for Rs. 1,561.36 million and non-performing loans stood at Rs. 14.79 million.

Pursuant to RBI Resolution Framework disclosures, personal loan exposure classified as standard consequent to resolution plans stood at Rs. 54.50 million as at September 30, 2025. During the half-year ended March 31, 2026, Rs. 2.39 million slipped into NPA and Rs. 1.02 million was paid by borrowers, resulting in a closing standard exposure of Rs. 51.09 million as at March 31, 2026. The company's main business remains financing through loans in the affordable housing segment in India, with no separate reportable segments under Ind AS 108.

Operational and Asset Quality Updates

According to the investor presentation for Q4FY26, the company's Assets Under Management (AUM) grew to Rs. 15,878 crore, registering a robust 24.9% YoY and 6.4% QoQ growth. Disbursements for the quarter grew by 23.5% YoY and 19.3% QoQ to an all-time high of Rs. 1,572 crore. The company expanded its network by adding 16 branches and 12 touchpoints during FY26, taking the total to 171 branches and 373 touchpoints. The total headcount reached 1,855 employees.

Asset quality strengthened materially on a QoQ basis, with early-stage delinquencies showing improvement. The Gross Non-Performing Assets (GNPA) stood at 1.8%, an improvement of 20 bps QoQ. Stage 3 assets as a percentage of Principal Outstanding (GNPA) was 1.8% for FY26. The Net Stage 3 assets as a percentage of Net Principal Outstanding (NNPA) was 1.4% for FY26. The company maintained a credit cost guidance of 30–40 bps.

FY27 Outlook and Green Initiative

Looking ahead, the company's leadership has set a target of approximately 25% yearly AUM growth for FY27, to be supported by wider distribution reach and increased technology adoption. On the sustainability front, the company shared that 450 homes had been certified under its Green Initiative by March 2026, reflecting its commitment to environmentally responsible lending in the affordable housing segment.

Home First Finance Company India Limited allotted 1,30,464 equity shares of Rs. 2/- each on May 04, 2026, following the exercise of vested Employee Stock Options (ESOPs) by eligible employees. The allotment was approved by the Committee of Directors and Review Committee and was carried out in compliance with Regulation 10(c) of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Share Capital Impact

The allotment has resulted in an increase in the company's paid-up share capital. The newly issued shares rank pari-passu with the existing equity shares of the company, and the company has stated it is in the process of completing the necessary formalities for listing of the allotted shares.

Scheme-wise Allotment Breakdown

The 1,30,464 equity shares were allotted across three ESOP schemes. The table below provides a scheme-wise summary of the shares issued on May 04, 2026.

Exercise Price Details

The exercise prices applicable under each scheme varied across tranches, as disclosed in the regulatory filing. The details are as follows:

Regulatory Compliance and Listing

The disclosure was made pursuant to Part E, Regulation 10(c) of the SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The distinctive numbers of the newly allotted shares range from 10,43,28,018 to 10,44,58,481. The shares have been issued in dematerialised form. No lock-in restrictions apply to the allotted shares, and they are identical in all respects to the company's existing equity shares. The intimation was signed by Shreyans Bachhawat, Company Secretary, Compliance Officer and Head – Legal (ACS No: 26700).