Citi has reaffirmed its positive outlook on Home First Finance Company by maintaining a Buy rating with a target price of ₹1,380. The brokerage's recommendation is supported by multiple growth drivers and improving operational metrics across the company's key business segments.

Strong Growth Momentum

The company is experiencing accelerating disbursements that are driving robust business expansion. This growth trajectory is supporting approximately 25% year-on-year AUM (Assets Under Management) growth, indicating strong demand for the company's financial products and effective market penetration strategies.

Regional Market Performance

Home First Finance Company has demonstrated strong traction across its primary operational markets of Gujarat, Maharashtra, Madhya Pradesh, and Rajasthan. This regional performance strength is contributing significantly to the overall business momentum and supporting the sustained growth in disbursements.

Asset Quality Improvements

The company's asset quality metrics are showing positive trends across multiple parameters:

• Lower DPD Targets: The company has implemented more stringent delinquency management practices
• Higher Provision Coverage: Enhanced provisioning strategies are strengthening the balance sheet
• Stress Pocket Normalization: Export-linked stress areas are showing signs of recovery and stabilization

Yield Impact Assessment

Citi's analysis indicates that a minor PLR (Prime Lending Rate) cut will have only a limited impact on the company's Q4 yields. This assessment suggests that the company's pricing power and portfolio composition provide resilience against interest rate adjustments.

Investment Outlook

The combination of accelerating growth, regional market strength, improving asset quality, and manageable yield pressures supports Citi's positive investment thesis. The ₹1,380 target price reflects confidence in the company's ability to maintain its growth trajectory while strengthening its operational fundamentals across key performance metrics.

Aether (Mauritius) Limited, a promoter entity of Home First Finance Company India Limited, has disclosed a significant reduction in its shareholding through open market transactions. The disclosure was made under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Transaction Details

The Mauritius-based entity sold 2,738,182 shares of Home First Finance Company through open market transactions on February 26, 2026. This sale represents 2.63% of the total share capital and 2.55% of the total diluted share capital of the target company.

Shareholding Changes

Prior to this transaction, Aether (Mauritius) Limited held 5,097,358 shares, representing 4.90% of the total share capital and 4.74% of the total diluted share capital. Following the sale, the promoter entity's holding has been reduced to 2,359,176 shares.

Company Capital Structure

Home First Finance Company's equity share capital remains unchanged at INR 207,846,424, comprising 103,923,212 equity shares with a face value of INR 2 each. The total diluted share capital stands at INR 215,074,876, comprising 107,537,438 equity shares with the same face value.

The company's shares are listed on both the National Stock Exchange of India Limited and BSE Limited. The shareholding calculations are based on the latest filing made by the company under Regulation 31 of SEBI LODR Regulations as of December 31, 2025.

Regulatory Compliance

The disclosure was signed by Mr. Ashveen Leekraj Dussoye, Director and Authorised Signatory of Aether (Mauritius) Limited, on March 2, 2026. The transaction falls under the mandatory disclosure requirements for substantial acquisitions and disposals as per SEBI regulations.