Home First Finance Reports 35.5% Surge in Q1 FY26 Profit, Completes Rs 1,250 Crore QIP

2 min read     Updated on 25 Jul 2025, 04:59 PM
scanxBy ScanX News Team
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Overview

Home First Finance Company reported a 35.5% year-on-year increase in profit after tax to Rs 1,188.91 million for Q1 FY26. Total revenue grew by 34.8% to Rs 4,536.14 million. Assets Under Management rose by 28.6% to Rs 134,787.00 million. The company successfully raised Rs 12,500 million through a Qualified Institutional Placement, strengthening its balance sheet. The company expanded its branch network to 158 and implemented new digital initiatives to enhance customer interactions.

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*this image is generated using AI for illustrative purposes only.

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.

Historical Stock Returns for Home First Finance Company

1 Day5 Days1 Month6 Months1 Year5 Years
-1.21%-19.05%-9.30%+24.38%+16.77%+126.95%
Home First Finance Company
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Smallcap World Fund Boosts Stake in Home First Finance to 7.8%

1 min read     Updated on 08 May 2025, 11:53 AM
scanxBy ScanX News Team
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Overview

Smallcap World Fund Inc. has increased its stake in Home First Finance Company India Ltd. by approximately 3%, bringing its total shareholding to 7.81%. The fund acquired 3,023,818 shares through an open market purchase on April 30, 2025. This move has been positively received by the market, with Home First Finance's stock price gaining nearly 2% in trading. The increased investment from this reputable fund may enhance Home First Finance's market credibility, potentially influence strategic decisions, and improve stock liquidity.

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*this image is generated using AI for illustrative purposes only.

Home First Finance Company India Ltd. has seen a significant increase in investment from Smallcap World Fund Inc., a move that has caught the attention of market observers and potentially bolstered investor confidence in the company.

Stake Increase Details

Smallcap World Fund Inc., a prominent global investment fund, has raised its stake in Home First Finance Company India by approximately 3%. This strategic move has resulted in the fund's total shareholding in the company reaching 7.81%. The transaction details are as follows:

Detail Value
Acquisition Date April 30, 2025
Shares Acquired 3,023,818
Method of Acquisition Open market purchase

Market Response

The news of this substantial stake increase has been well-received by the market. Following the announcement:

  • Home First Finance's stock price experienced a notable uptick, gaining nearly 2% in trading.
  • This positive movement suggests that investors view the increased stake by Smallcap World Fund as a vote of confidence in Home First Finance's potential and future prospects.

About Smallcap World Fund Inc.

Smallcap World Fund Inc. is known for its focus on investing in small-cap companies with strong growth potential. Their decision to increase their stake in Home First Finance Company India to over 7% indicates their positive outlook on the company's future performance and market position.

Implications for Home First Finance

This increased investment from a reputable fund like Smallcap World Fund could have several implications for Home First Finance:

  1. Enhanced Market Credibility: The stake increase may be perceived as an endorsement of the company's business model and growth strategy.
  2. Potential for Strategic Input: With a larger stake, Smallcap World Fund might have more influence on the company's strategic decisions, potentially bringing valuable insights from their global investment experience.
  3. Improved Liquidity: Increased interest from institutional investors could lead to better liquidity for the stock in the market.

The move by Smallcap World Fund to increase its stake in Home First Finance Company India reflects growing investor interest in the company. As the financial landscape continues to evolve, market participants will be keenly watching how this development influences Home First Finance's trajectory in the coming months.

Historical Stock Returns for Home First Finance Company

1 Day5 Days1 Month6 Months1 Year5 Years
-1.21%-19.05%-9.30%+24.38%+16.77%+126.95%
Home First Finance Company
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