Home First Finance Company India Limited (Home First) has unveiled its strategic financial targets for the fiscal year 2026, showcasing a robust outlook for growth and profitability. The company's management shared these insights during a recent earnings conference call, highlighting key areas of focus and expected improvements in financial metrics.

Disbursement and Cost Optimization

Home First has set an ambitious disbursement target of Rs 5,600-5,800 crores for the fiscal year 2026. This aggressive goal underscores the company's confidence in its market position and growth potential in the housing finance sector.

In a move to enhance profitability, Home First anticipates a significant reduction in its cost of borrowing. The company expects this cost to decrease to approximately 8.00% by March, representing a substantial drop of 50-60 basis points. Despite this reduction, Home First aims to maintain its spreads within the range of 5.00-5.25%, indicating a balanced approach to managing its interest margins.

Profitability and Efficiency Targets

The company has outlined clear objectives for improving its return metrics:

• Return on Equity (ROE): Home First is targeting a 15.00% ROE within the next 5-6 quarters, reflecting its commitment to enhancing shareholder value.
• Return on Assets (ROA): The company aims to push its ROA close to 4.00%, indicating a focus on efficient asset utilization.
• Operating Expenses: Home First plans to keep its operating expenses to assets ratio between 2.60-2.70%, demonstrating a commitment to operational efficiency.

Risk Management and Diversification

In terms of risk management, Home First has provided guidance on credit costs, projecting them to be in the range of 30-40 basis points for FY26. This relatively low figure suggests the company's confidence in its underwriting standards and the quality of its loan portfolio.

Additionally, Home First is looking to diversify its business model by increasing its co-lending contribution. The company plans to raise this to 10.00% of disbursements, potentially allowing for risk-sharing and access to a broader customer base.

Conference Call and Investor Relations

The company's proactive approach to investor relations was evident in its recent activities. According to the LODR (Listing Obligations and Disclosure Requirements) data, Home First conducted an earnings conference call for the quarter ended June 30, 2025, on July 28, 2025. The company has made the audio recording of this call available on its website, demonstrating transparency in its communications with investors and analysts.

Furthermore, Home First officials engaged in one-on-one meetings with investors and analysts on the same day, referring to publicly available documents during these interactions. This engagement underscores the company's commitment to keeping the investment community well-informed about its strategies and performance.

As Home First sets these ambitious targets, the market will be closely watching the company's execution in the coming quarters. The combination of growth in disbursements, cost optimization, and focus on profitability metrics positions Home First as a company aiming for sustainable and profitable growth in the competitive housing finance sector.

Home First Finance Company , a prominent player in the Indian financial services sector, has reported a substantial increase in its financial performance for the first quarter of the fiscal year.

Strong Profit Growth

The company announced a net profit of 1.19 billion rupees for Q1, marking a significant year-over-year increase of 35% from 877.7 million rupees in the same period last year. This robust growth in profitability underscores the company's effective strategies and operational efficiency.

Revenue Expansion

Alongside the impressive profit growth, Home First Finance Company also reported a substantial increase in revenue. The company's revenue for Q1 stood at 4.54 billion rupees, up from 3.36 billion rupees in the corresponding quarter of the previous year. This represents a year-over-year growth of approximately 35%, mirroring the pace of profit increase.

Financial Performance Overview

To better illustrate the company's financial progress, here's a comparison of the key metrics:

The parallel growth in both revenue and net profit suggests that Home First Finance Company has maintained its operational efficiency while expanding its business activities.

This strong financial performance indicates Home First Finance Company's resilience and adaptability in the dynamic financial services landscape. The company's ability to significantly increase both its top-line and bottom-line figures year-over-year is likely to be viewed positively by investors and market analysts.

As the fiscal year progresses, stakeholders will be keen to observe if Home First Finance Company can maintain this growth trajectory and continue to strengthen its market position in the competitive financial services sector.