Quarterly Earnings
Home First Finance Q1 FY27 Results: PAT Rises 34.5% YoY to ₹160 Crore, AUM Crosses ₹16,900 Crore
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Home First Finance Company India Limited reported a strong Q1 FY27 with robust growth across lending, profitability and operating metrics. The company recorded 25.7% YoY growth in Assets Under Management (AUM), 31% growth in disbursements and 34.5% growth in Profit After Tax, while maintaining stable asset quality and a strong capital position.
PRICE-SENSITIVE TRIGGER
Event: Q1 FY27 Financial Results
Type: Quarterly Earnings
Impact: Positive
Immediate Effect: Strong earnings growth, record loan disbursements and stable asset quality reinforce Home First Finance’s momentum in the affordable housing finance segment.
Metrics:
Key Metrics:
- Assets Under Management (AUM): ₹16,938 Cr (+25.7% YoY, +6.7% QoQ)
- Disbursements: ₹1,628 Cr (+31.0% YoY, +3.6% QoQ)
- Total Income: ₹540 Cr (+18.6% YoY, +7.0% QoQ)
- Profit After Tax (PAT): ₹160 Cr (+34.5% YoY, +7.0% QoQ)
- Spread: 5.3% (+20 bps YoY; Flat QoQ)
- Return on Assets (ROA): 4.2% (+50 bps YoY; +10 bps QoQ)
- Return on Equity (ROE): 14.5%
- Gross Stage 3 (GNPA): 1.8% (Stable YoY & QoQ)
- Cost-to-Income Ratio: 32.7% (Improved by 150 bps YoY)
Highlight:
- PAT increased 34.5% YoY to ₹160 crore.
What Happened ?
Home First Finance delivered a strong opening quarter for FY27 with record disbursements, healthy loan book expansion and improved profitability.
Business growth remained broad-based across geographies and distribution channels, while disciplined underwriting and collection efficiency helped maintain stable asset quality despite continued expansion.
key details
Key Highlights
- Assets Under Management reached ₹16,938 crore.
- Quarterly loan disbursements hit a record ₹1,628 crore.
- Total income increased to ₹540 crore.
- Profit After Tax rose to ₹160 crore.
- Branch network expanded to 175 branches across 13 States/UTs.
- Distribution network comprised 373 touchpoints.
- Housing loans contributed approximately 83% of AUM.
- EWS/LIG borrowers represented nearly 58% of the portfolio.
- Asset quality remained stable:
- 1+ DPD: 4.7%
- 30+ DPD: 3.2%
- Gross Stage 3 (GNPA): 1.8%
- Credit cost remained contained at 40 basis points.
- Liquidity buffer stood at ₹2,272 crore.
- Total borrowings were ₹10,818 crore.
- Capital adequacy remained strong with CRAR of 42.6% and Tier-I capital of 42.2%.
- Net worth increased to ₹4,483 crore.
- The company certified an additional 100 Green Homes, taking the cumulative total to 550.
Note:
- Management attributed the quarter’s performance to healthy customer demand, disciplined underwriting, prudent liability management and continued investment in branch expansion.
Risk Analysis
Summary:
- While operating performance remains strong, Home First Finance continues to face risks associated with housing demand, funding costs and macroeconomic conditions.
Key Risks:
- Global macroeconomic and geopolitical uncertainties.
- Changes in interest rates and borrowing costs.
- Asset quality pressure if economic conditions weaken.
- Dependence on sustained affordable housing demand.
- Regulatory and funding environment could impact future growth.
Worst Case:
- A slowdown in housing demand, rising funding costs or deterioration in borrower repayment behaviour could affect loan growth, margins and profitability.
Risk Level: Medium
Company Commentary
- Affordable housing demand continues to remain structurally strong.
- The company expects to sustain approximately 25% AUM growth.
- Profitability and portfolio quality remain key priorities.
- Branch expansion and technology investments continue to strengthen distribution capabilities.
- Strong capitalization and diversified funding position the company well for long-term growth.
Official Exchange Filing: Home First Finance Limited
