Home First Finance Company India Limited delivered impressive Q3FY26 financial performance, with the Board of Directors approving the reviewed financial results for the quarter and nine months ended December 31, 2025, during their meeting held on January 22, 2026.

Strong Quarterly Performance

The company's Q3FY26 results demonstrate robust growth across key financial metrics:

Interest income, the company's primary revenue driver, grew significantly by 20.5% to ₹4,288.03 million, reflecting the expansion of the loan portfolio. Fees and commission income also showed strong growth of 30.8% to ₹201.15 million.

Nine-Month Financial Highlights

The nine-month performance further reinforces the company's strong trajectory:

The company maintained healthy profitability margins with profit before tax increasing 40.9% to ₹5,125.64 million for the nine-month period.

Operational Efficiency and Cost Management

Total expenses for Q3FY26 increased to ₹3,008.42 million from ₹2,776.34 million in the previous year, representing an 8.4% rise. Key expense components included:

• Finance costs: ₹1,940.96 million (vs ₹1,926.32 million in Q3FY25)
• Employee benefits expense: ₹635.64 million (vs ₹507.87 million in Q3FY25)
• Impairment on financial instruments: ₹141.70 million (vs ₹97.87 million in Q3FY25)

The company recognized an additional ₹33.00 million provision for employee benefits due to the implementation of New Labour Codes consolidated by the Government of India on November 21, 2025.

Loan Transfer Activities

During Q3FY26, the company transferred 3,755 loans aggregating ₹2,387.85 million through direct assignment with a sale consideration of ₹2,149.07 million. For the nine-month period, 7,735 loans worth ₹6,380.06 million were transferred with proceeds of ₹5,742.05 million. The company maintained a 10% retention of beneficial economic interest and 100% tangible security coverage.

Leadership Reappointment

The Board approved the reappointment of Ms. Kavita Semwal as Chief Compliance Officer, designated as Senior Management Personnel, effective May 1, 2026, for a three-year term. This decision was based on recommendations from the Nomination & Remuneration Committee.

Share Capital and Employee Stock Options

During Q3FY26, the company allotted 362,633 equity shares to employees under approved employee stock option schemes. For the nine-month period, 981,075 equity shares were allotted. The paid-up equity share capital stood at ₹207.85 million as of December 31, 2025.

Earnings per share for Q3FY26 increased to ₹13.52 (basic) and ₹13.34 (diluted) compared to ₹10.90 and ₹10.65 respectively in Q3FY25, reflecting the strong profit growth and efficient capital utilization.

Home First Finance Company India Limited has successfully allotted 1,72,424 equity shares of ₹2.00 each through the exercise of employee stock options under its established ESOP schemes. The Committee of Directors and Review Committee approved this allotment on January 20, 2026, marking a significant milestone in the company's employee benefit programs.

Share Capital Enhancement

The allotment has resulted in a notable increase in the company's paid-up share capital structure:

ESOP Scheme Breakdown

The allotment encompasses shares from two distinct employee stock option schemes:

Regulatory Compliance and Listing

The allotment has been executed in full compliance with Regulation 10(c) of the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021. The company has confirmed that the newly allotted shares will rank pari-passu with existing equity shares, ensuring equal rights and privileges for all shareholders.

Home First Finance Company is currently completing the necessary formalities for listing these shares on both BSE Limited and the National Stock Exchange of India Limited. The shares carry the ISIN number INE481N01025 and will be issued in demat form with distinctive numbers ranging from 10,39,23,213 to 10,40,95,636.

Corporate Structure Impact

The successful execution of this ESOP exercise demonstrates the company's commitment to employee participation in its growth story. With no lock-in restrictions applicable to these shares, employees can enjoy full liquidity benefits. The shares are identical in all respects to the existing equity shares of the company, maintaining uniformity in the shareholding structure.

This allotment reflects the company's robust employee engagement strategy and provides a clear pathway for talent retention through equity participation. The completion of listing formalities will enable seamless trading of these newly issued shares on the recognized stock exchanges.