Home First Finance Reports Strong Q2 FY26 Results with 43% PAT Growth

Home First Finance Company India Limited (HomeFirst), a technology-driven affordable housing finance company, has announced its financial results for the second quarter of fiscal year 2026, showcasing robust growth and improved profitability.

Financial Highlights

HomeFirst reported a significant increase in its Profit After Tax (PAT) for Q2 FY26, which rose by 43% year-on-year to Rs. 1,318.47 million, compared to Rs. 922.25 million in the same quarter of the previous year. The company's performance also showed improvement on a sequential basis, with PAT growing by 10.9% from Q1 FY26.

Key financial metrics for Q2 FY26 include:

Metric	Q2 FY26	Y-o-Y Growth	Q-o-Q Growth
Total Income	Rs. 4,790.50 million	28.0%	5.2%
Net Interest Income	Rs. 1,865.70 million	33.8%	11.3%
Assets Under Management (AUM)	Rs. 141,781.00 million	26.3%	5.2%
Disbursements	Rs. 12,894.00 million	9.6%	3.7%

The company's Asset Under Management (AUM) reached Rs. 141,781.00 million, demonstrating a strong year-on-year growth of 26.3% and a quarter-on-quarter increase of 5.2%.

Operational Performance

HomeFirst continued to expand its presence, operating through 163 branches across 143 districts in 13 states and union territories. The company's focus on digital processes has yielded positive results, with 91% of loans approved within 48 hours during Q2 FY26.

Asset Quality

The company maintained a stable asset quality profile:

Gross Stage 3 assets stood at 1.9% of the portfolio, showing a slight increase from 1.8% in the previous quarter.
The 1+ Days Past Due (DPD) was reported at 5.5%, up by 10 basis points quarter-on-quarter.

Management Commentary

Manoj Viswanathan, MD & CEO of HomeFirst, commented on the results: "Q2 FY26 was another quarter of disciplined growth and steady execution, with the backdrop of a subdued macro environment marked by prolonged monsoons and tariff hikes. Our AUM reached INR 14,178 crore, up 26.3% y-o-y and 5.2% q-o-q."

He further added, "Profitability was robust: PAT came in at INR 132 crore, up 43.0% YoY and 10.9% QoQ, delivering a RoA of 3.8%. Reported ROE was 13.4% post our recent equity raise; on a pre-money adjusted basis, ROE stands at 16.7% - a better reflection of underlying earnings power."

Recent Developments

The company announced leadership changes, including:

Mr. Shreyans Bachhawat has been assigned additional responsibility as Head-Legal, effective October 1, 2025, in addition to his current roles as Company Secretary and Compliance Officer.
Ms. Vilasini Subramaniam, Head-Strategic Alliances, has resigned from her position effective November 14, 2025, citing personal reasons.

HomeFirst's continued focus on technology-driven operations and expansion in the affordable housing segment has contributed to its strong performance in Q2 FY26, positioning the company for sustained growth in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-5.01%	-6.07%	-7.54%	-1.40%	-2.61%	+115.34%

Home First Finance Company India Limited (HFFCIL) has announced a significant improvement in its Environmental, Social, and Governance (ESG) Risk Rating as assessed by Morningstar Sustainalytics. The company's ESG risk score has been revised from 17.4 to 13.6, placing it firmly in the 'Low Risk' category for ESG risk management.

Improved ESG Performance

The revised rating reflects HFFCIL's enhanced efforts in managing its environmental, social, and governance risks. This improvement is particularly noteworthy in the financial services sector, where ESG considerations are increasingly becoming critical for investors and stakeholders.

Discovery and Disclosure

According to the company's disclosure, the improved rating was discovered on September 24, 2025, at 3:54 P.M. IST, when company officials checked the Morningstar Sustainalytics website. Promptly following this discovery, HFFCIL made an official announcement to the stock exchanges in compliance with regulatory requirements.

Official Statement

Shreyans Bachhawat, Company Secretary and Compliance Officer of Home First Finance Company India Limited, officially communicated this development to the BSE Limited and the National Stock Exchange of India Limited. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Implications for Investors

This improved ESG rating could potentially enhance Home First Finance Company's appeal to environmentally and socially conscious investors. It may also reflect positively on the company's risk management practices and overall sustainability efforts.

About ESG Ratings

ESG ratings provided by agencies like Morningstar Sustainalytics assess a company's exposure to long-term environmental, social, and governance risks. These ratings are increasingly used by investors to evaluate a company's sustainability and ethical impact alongside its financial performance.

Home First Finance Company India Limited's move into the 'Low Risk' category signifies its commitment to sustainable and responsible business practices, which could potentially influence investor perceptions and decision-making in the evolving landscape of sustainable finance.