Can Fin Homes Reports Record Q2 FY26 Disbursements, Improved Margins

Can Fin Homes , a prominent player in the Indian housing finance sector, has reported a strong performance for the second quarter of fiscal year 2026, marked by record disbursements and improved financial metrics.

Record Disbursements and Improved Margins

The company achieved record quarterly disbursements of INR 2,500 crores in Q2 FY26, marking the first time it has crossed this threshold in any second quarter. This robust disbursement growth was accompanied by improved financial metrics, with the Net Interest Margin (NIM) crossing 4% and the spread increasing from 2.62% to 2.79%.

Delinquency Reduction and Credit Costs

Can Fin Homes reported a significant reduction in total delinquency, which decreased by INR 130 crores to approximately INR 3,850 crores. This improvement led to minimal credit costs of only INR 3 crores for growth provisioning in the quarter.

Regional Performance

The company's operations in Karnataka showed a remarkable recovery, with September disbursements reaching INR 270 crores compared to INR 78 crores in the previous year's Q2. This significant improvement indicates a positive trend in one of the company's key markets.

Refinance and IT Transformation

Can Fin Homes received a National Housing Bank (NHB) refinance sanction of INR 1,500 crores at an indicative blended rate of 6.8%, which is expected to support the company's funding costs. Additionally, the company's IT transformation implementation is progressing as scheduled, with the first phase modules going live on September 30.

Future Outlook

For Q3 FY26, the company maintains its disbursement guidance at INR 2,500 crores, considering the potential impact of the ongoing IT transformation. For the full fiscal year, Can Fin Homes is targeting overall annual disbursements of INR 10,500 crores and 12-13% AUM growth.

Management has provided guidance for a spread of 2.75% and NIM of 3.75% going forward, indicating a stable outlook for the company's profitability metrics. The company also expects further delinquency reduction of INR 100 crores in Q3, which could potentially lead to lower credit costs.

Market Implications

The strong performance of Can Fin Homes in Q2 FY26, particularly in disbursements and margin improvement, may be viewed positively by investors. The company's focus on reducing delinquencies and maintaining healthy growth targets suggests a balanced approach to expansion and risk management in the competitive housing finance sector.

As the company continues to implement its IT transformation and expand its presence in key markets, investors will likely monitor its ability to maintain this growth momentum while managing asset quality in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.46%	+5.43%	+8.71%	+13.87%	-2.65%	+85.09%

Can Fin Homes , a prominent player in the housing finance sector, has recently announced its financial projections and targets, setting the stage for its growth strategy in the coming years.

Key Financial Projections

The company has outlined several key financial metrics it aims to achieve:

Metric	Target
Spread	2.75%
Net Interest Margin (NIM)	3.75%
Credit Costs (FY26)	< 15 basis points
Q3 FY26 Disbursements	₹2,500.00 crore
FY26 AUM Growth	12-13%
FY26 Total Disbursements	₹10,500.00 crore
AUM Growth from FY27	15%

Disbursement Outlook

Can Fin Homes has set a target of ₹2,500.00 crore in disbursements for Q3 FY26. The company notes that this figure is below its potential, attributing the conservative estimate to ongoing IT system changes. Despite this temporary constraint, the company maintains its full-year FY26 guidance of ₹10,500.00 crore in total disbursements.

Growth Trajectory

The company's projections reveal a strategic growth plan:

For FY26, Can Fin Homes anticipates an AUM (Assets Under Management) growth of 12-13%.
Starting from FY27, the company aims to accelerate its AUM growth to 15%.

Financial Efficiency

Can Fin Homes expects to maintain a healthy spread of 2.75% and a net interest margin (NIM) of 3.75% going forward. These metrics indicate the company's projected efficiency in managing its interest income relative to its interest expenses.

Risk Management

In terms of asset quality, the company projects that credit costs for FY26 will be lower than 15 basis points. This suggests a positive outlook on the company's loan portfolio quality and its ability to manage credit risk effectively.

The announced targets and projections provide insights into Can Fin Homes' strategic direction, highlighting its focus on sustainable growth and financial efficiency in the competitive housing finance market.