Repco Home Finance net profit rises 6% YoY in Q1FY27 as NII grows
Repco Home Finance Limited reported a standalone net profit of ₹114 crore for Q1FY27, rising 5.6% from ₹108 crore in Q1FY26. Net interest income increased 10.2% to ₹216 crore, driven by an 8.9% growth in the loan book to ₹15,990 crore. Asset quality improved with GNPA ratio declining to 2.7% from 3.3% year-on-year, while capital adequacy remained robust at 36.13%.
*this image is generated using AI for illustrative purposes only.
Repco Home Finance Limited reported a standalone net profit of ₹114 crore for the quarter ended June 30, 2026, marking a 5.6% increase from ₹108 crore in the same period last year. The housing finance company’s net interest income (NII) rose 10.2% year-on-year to ₹216 crore, driven by an 8.9% expansion in its loan book to ₹15,990 crore. Total income grew 6.1% to ₹468 crore, reflecting steady demand across its retail lending portfolio despite a sequential dip in quarterly profit.
The Board of Directors approved the unaudited financial results on August 11, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Statutory auditors R. Subramanian and Company LLP conducted a limited review of the interim financial information under Standard on Review Engagements (SRE) 2410. The company also submitted security cover and covenant compliance certificates for its listed secured debt securities as per Regulation 54(3) and Regulation 56 of the SEBI Listing Regulations.
Financial Performance Highlights
Interest income increased to ₹456.90 crore from ₹444.13 crore in the prior quarter. Fees and commission income declined to ₹5.49 crore from ₹7.21 crore. Other operating revenue more than doubled to ₹3.10 crore from ₹1.29 crore, while net gain on fair value changes rose to ₹2.21 crore from ₹0.89 crore. Dividend income remained nil for the current quarter.
| Metric | Q1 FY27 (₹ cr) | Q4 FY26 (₹ cr) | Change |
|---|---|---|---|
| Interest Income | 456.90 | 444.13 | +2.9% |
| Fees & Commission | 5.49 | 7.21 | -23.9% |
| Total Revenue | 467.70 | 453.52 | +3.1% |
| Net Profit (Standalone) | 114.15 | 129.11 | -11.6% |
| Net Profit (Consolidated) | 121.62 | 135.18 | -10.0% |
Expenses totaled ₹320.16 crore, up from ₹305.87 crore in the previous quarter. Finance costs rose to ₹251.29 crore from ₹246.78 crore. Impairment on financial instruments swung to a charge of ₹9.69 crore from a reversal of ₹11.35 crore in the prior period. Employee benefits expense decreased to ₹34.22 crore from ₹44.05 crore. Depreciation and amortization increased slightly to ₹10.38 crore from ₹10.20 crore.
Asset Quality and Loan Book Growth
As of June 30, 2026, the gross NPA ratio stood at 2.7%, down from 3.3% in June 2025, while the net NPA ratio remained stable at 1.2%. The absolute GNPA decreased to ₹427 crore from ₹485 crore a year ago, though it rose sequentially from ₹405 crore in March 2026. The provision coverage ratio for Stage-3 assets was 54.5%, with total provisions for expected credit losses amounting to ₹353 crore or 2.2% of total loan assets. The capital adequacy ratio stood at 36.13%, well above the regulatory minimum of 15%.
The loan book composition showed loans to the non-salaried segment accounting for 53.5% of the outstanding, while salaried segment loans made up 46.5%. Housing loans constituted 70.8% of the portfolio, with Home Equity products comprising 29.2%. All loans disbursed by the company are retail in nature. Loan sanctions stood at ₹938 crore in Q1FY27 compared to ₹907 crore in Q1FY26, while disbursements were ₹843 crore against ₹829 crore in the prior year.
What the Numbers Show
The reversal of deferred tax liability recognized in the prior year significantly impacted the current quarter's tax profile. The company reversed ₹14.40 crore of deferred tax expense previously recognized on special reserves created under Section 36(1)(viii) of the Income Tax Act, 1961. Management assessed that there is no intention to utilize these special reserves in the future, meaning the deferred tax liability is not capable of being reversed. This accounting treatment, approved by the Board and aligned with Ind AS 12, resulted in a lower deferred tax expense of ₹1.25 crore in the current quarter compared to a credit of ₹12.11 crore in the previous quarter, impacting the overall tax expense calculation.
Historical Stock Returns for Repco Home Finance
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.18% | -2.49% | -7.99% | -11.26% | -2.74% | +16.97% |
How might the sequential decline in net profit and the swing to an impairment charge impact Repco Home Finance's credit rating or cost of funds in upcoming quarters?
Given that non-salaried loans constitute over 53% of the portfolio, what strategies is management implementing to mitigate potential credit risks associated with this segment amidst current economic conditions?
Will the reversal of deferred tax liabilities continue to distort year-on-year tax expense comparisons, and how should investors adjust their EPS forecasts for FY27?
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