Home First Finance Company has outlined its strategic approach to maintain credit cost guidance between 30 to 40 basis points while implementing disciplined risk management practices during its growth phase. This guidance reflects the company's commitment to balanced expansion and prudent financial oversight in the housing finance sector.

Credit Cost Management Strategy

The company's credit cost guidance represents a focused approach to managing financial risks while pursuing growth opportunities. The 30 to 40 basis points range indicates the company's strategic positioning in maintaining controlled credit expenses relative to its loan portfolio.

Risk Management Framework

Home First Finance Company emphasizes disciplined risk management as a core component of its operational strategy. This approach aims to balance growth objectives with prudent credit risk assessment and management practices. The company's framework focuses on maintaining quality standards while expanding its market presence in the housing finance segment.

Strategic Growth Approach

The company's commitment to maintaining the specified credit cost guidance while pursuing growth demonstrates its strategic focus on sustainable expansion. This balanced approach reflects the organization's emphasis on long-term stability and controlled growth in the competitive housing finance market.

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.