Home First Finance Company India Limited (HomeFirst), a technology-driven affordable housing finance company, has reported robust financial results for the first quarter, while pursuing growth through expansion into tier-3 markets and digital asset diversification.

Strong Financial Performance

For Q1, HomeFirst reported:

• Assets Under Management (AUM) of ₹13,479.00 crore, showing a significant growth of 28.60% year-on-year and 6.00% quarter-on-quarter.
• Profit After Tax (PAT) of ₹119.00 crore, up by 35.50% year-on-year and 13.60% quarter-on-quarter.
• Disbursements of ₹1,243.00 crore, reflecting a 7.00% year-on-year growth.

Expansion and Growth Strategy

HomeFirst is actively pursuing growth through:

1. Penetration into tier-3 markets to expand its customer base.
2. Digitally enabled asset diversification to enhance its product offerings.
3. Strengthening its borrower profile while maintaining steady disbursement momentum.

Credit Rating Upgrade and Capital Infusion

The company's long-term credit rating has been upgraded to AA 'Stable' by ICRA, IndRa, and CARE. This upgrade follows a successful Qualified Institutions Placement (QIP) that raised ₹1,250.00 crore, significantly enhancing the company's net worth to ₹3,855.00 crore.

Operational Highlights

• Addition of 3 new physical branches, bringing the total to 158 branches across 13 states/UTs.
• Serving 142 districts in India.
• Net addition of 75 employees, taking the total employee base to 1,709.

Asset Quality

HomeFirst maintains a strong focus on asset quality:

• Gross Stage 3 (GNPA) at 1.80%, up by 10 bps quarter-on-quarter.
• Credit cost at 40 bps, up by 10 bps quarter-on-quarter.

Technology and Digital Initiatives

The company continues to leverage technology for improved operations:

• Integration of DigiLocker into document verification processes.
• Launch of "Pulse" - an omni-channel conversational AI platform.
• 78% adoption of account aggregator among new approvals.
• 80%+ digital fulfillment with digital agreements and E-NACH mandates.
• 96% of customers registered on the company's app.

ESG Initiatives

HomeFirst is committed to sustainable and responsible lending:

• Promotion of energy-efficient "Green" homes, with 70 additional homes certified during the quarter.
• Total of 190 Green Homes certified as of June.
• High ESG scores from independent global agencies, including MorningStar Sustainalytics, SES ESG Research, and CRISIL.

Manoj Viswanathan, MD & CEO of HomeFirst, commented on the results, stating, "Q1 saw consistent business delivery with Assets Under Management (AUM) growing to ₹13,479.00 Cr, registering a growth of 28.60% y-o-y and 6.00% q-o-q. The key highlight from the quarter was the successful QIP of ₹1250.00 Cr and a subsequent upgrade of our long-term credit rating to AA (Stable) by ICRA, IndRa and CARE."

He further added, "We remain committed towards building a large affordable housing finance franchise driven by our unique business model. Housing in India continues to be a multi-decade growth opportunity with HomeFirst well positioned to harness the same."

As HomeFirst continues to expand its reach and strengthen its market position, the company appears well-positioned to capitalize on the growing demand for affordable housing finance in India.

Home First Finance Company , a technology-driven affordable housing finance company, has reported a robust financial performance for the first quarter of fiscal year 2026, marked by significant growth in profits and successful capital raising.

Strong Financial Performance

The company posted a profit after tax of Rs 1,188.91 million for Q1 FY26, representing a substantial year-on-year growth of 35.5% compared to Rs 877.68 million in the same quarter last year. On a sequential basis, the profit increased by 13.6% from Rs 1,046.92 million in the previous quarter.

Total revenue from operations saw a notable increase, rising to Rs 4,536.14 million in Q1 FY26 from Rs 3,364.19 million in Q1 FY25, marking a 34.8% year-on-year growth. The company's interest income, a key component of its revenue, grew by 26.8% year-on-year to Rs 3,843.79 million.

Improved Operational Metrics

Home First Finance demonstrated strong operational performance during the quarter:

• Assets Under Management (AUM) grew to Rs 134,787.00 million, showing a robust growth of 28.6% year-on-year and 6.0% quarter-on-quarter.
• Disbursements for Q1 FY26 stood at Rs 12,435.00 million, up by 7.0% year-on-year.
• The company maintained a healthy gross stage 3 assets (GNPA) ratio of 1.8%, indicating sound asset quality.

Successful Capital Raise

A significant highlight of the quarter was the completion of a Qualified Institutional Placement (QIP) on April 11, 2025. The company raised Rs 12,500.00 million by allotting 12,886,597 equity shares at Rs 970.00 per share. This capital infusion substantially strengthened the company's balance sheet, with the net worth increasing to Rs 38,551.00 million as of June 30, 2025, compared to Rs 25,213.00 million at the end of the previous quarter.

Expansion and Digital Initiatives

Home First Finance continued its expansion strategy:

• Added 3 new physical branches during the quarter, bringing the total branch count to 158.
• Increased its presence to 142 districts across 13 states.
• Grew its employee base to 1,709, adding 75 net employees during the quarter.

The company also made strides in its digital initiatives:

• Integrated DigiLocker into its document verification process.
• Launched "Pulse", an omni-channel conversational AI platform to enhance customer interactions.

Management Commentary

Manoj Viswanathan, Managing Director and CEO, commented on the results: "Q1 FY26 saw consistent business delivery with Assets Under Management (AUM) growing to ₹13,479 Cr, registering a growth of 28.6% y-o-y and 6.0% q-o-q. The key highlight from the quarter was the successful QIP of ₹1250 Cr and a subsequent upgrade of our long-term credit rating to AA (Stable) by ICRA, IndRa and CARE."

He further added, "This capital infusion augments HomeFirst's capital base and further strengthens our ability to expand our footprint, deepen customer engagement, and deliver sustained value to all stakeholders."

Outlook

With a strong capital base, expanding distribution network, and focus on technology-driven operations, Home First Finance appears well-positioned for continued growth in the affordable housing finance segment. The company's commitment to digital initiatives and customer-centric approach is likely to drive further operational efficiencies and market penetration in the coming quarters.