Repco Home Fin Q1 FY27 Earnings Call — Analysis (NSE: REPCOHOME)
Repco Home Finance Q1 FY27 net profit rose to ₹114 Cr from ₹108 Cr and management reaffirmed FY27 guidance of ₹5,000 Cr disbursements and 13–14% AUM growth.
Result quality: strong — Earnings grew. Management sentiment: neutral.
The take
Q1FY27 Net profit ₹114 Cr ( +₹108 Cr in Q1 FY26 YoY ) . New guidance — FY27 fy27 total disbursements ₹5,000 Cr .
Results
Q1 FY27 sanctions were ₹938 Cr and disbursements ₹843 Cr; AUM stood at ₹15,990 Cr (+8.9% YoY); NII was ₹216 Cr vs ₹207 Cr; net profit was ₹114 Cr vs ₹108 Cr; GNPA ratio rose to 2.7% QoQ but improved from year-ago absolute NPA of ₹485 Cr to ₹427 Cr.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Sanctions | ₹938 Cr | +₹907 Cr in Q1 FY26 | yoy · Q1FY27 · vs Q1FY26 |
| Disbursements | ₹843 Cr | +₹829 Cr in Q1 FY26 | yoy · Q1FY27 · vs Q1FY26 |
| AUM | ₹15,990 Cr | point_in_time · Q1FY27 · As of Jun-30-2026; management stated 8.9% YoY growth | |
| NII | ₹216 Cr | +₹207 Cr in Q1 FY26 | yoy · Q1FY27 · vs Q1FY26 |
| Net profit | ₹114 Cr | +₹108 Cr in Q1 FY26 | yoy · Q1FY27 · vs Q1FY26 |
| NIM | 5.4% | point_in_time · Q1FY27 · For quarter ended Jun-30-2026 | |
| Spread | 3.4% | point_in_time · Q1FY27 · For quarter ended Jun-30-2026 | |
| Gross NPA absolute | ₹427 Cr | +₹405 Cr in Q4 FY26; ₹485 Cr in Q1 FY26 | qoq · Q1FY27 · QoQ up; YoY down |
| Gross NPA ratio | 2.7% | +2.6% in Q4 FY26 | qoq · Q1FY27 · QoQ up; YoY improvement |
| Stage 2 ratio | 7.2% | +7.0% in Q4 FY26; 9.7% in Q1 FY26 | qoq · Q1FY27 · QoQ up; YoY improved |
| Cost of funds | 8.3% | point_in_time · Q1FY27 · As of Jun-30-2026 | |
| Cost-to-income ratio | 26% | point_in_time · Q1FY27 · Quarter ended Jun-30-2026 | |
| Credit cost | 0.2% | point_in_time · Q1FY27 · Quarter ended Jun-30-2026 | |
| Cumulative ECL provision | ₹352 Cr | point_in_time · Q1FY27 · As of Jun-30-2026 | |
| PCR (stage 3 provision / stage 3 gross assets) | 54% | point_in_time · Q1FY27 · As of Jun-30-2026 | |
| ROE | 12.7% | point_in_time · Q1FY27 · Quarter ended Jun-30-2026 | |
| ROA | 2.9% | point_in_time · Q1FY27 · Quarter ended Jun-30-2026 |
Guidance
FY27 guidance reiterated: ₹5,000 Cr disbursements, 13–14% AUM growth and ₹40 Cr NPA reduction; Q2 FY27 disbursement target set at ₹1,200–1,250 Cr.
What management committed to
- Repco Home Finance reiterated FY27 disbursement guidance of ₹5,000 Cr. — ₹5,000 Cr, FY27
- Repco Home Finance reiterated FY27 AUM growth guidance of 13% to 14%. — 13% to 14%, FY27
- Repco Home Finance aims to reduce gross NPA by ₹40 Cr during FY27. — ₹40 Cr, FY27
- Repco Home Finance targets Q2 FY27 disbursements of ₹1,200 Cr to ₹1,250 Cr.
Key themes
Aggressive disbursement push amid NPA reduction
Operational commentary
- NHB sanctioned ₹600 Cr refinance during FY27; ₹106 Cr already availed in the first week of August 2026 and the balance to be drawn as needed.
- Q1 disbursement momentum was disrupted by April-May branch-head transfers and promotions; management says teams are settled and July/August disbursements are on track.
- Branch network stands at 242 branches plus 32 satellite centres; no branches were opened in Q1, but 12–13 new branches are planned for FY27, mainly in AP, Telangana, Karnataka and western states.
- IT transformation and verticalisation are complete: separate sales, collections/recovery, SARFAESI and NPA-management verticals; API integrations with Perfios, CERSAI and CIBIL are reducing turnaround time.
- Loan-book mix: 57% Tamil Nadu; non-salaried 53.5% / salaried 46.5%; home-equity 29% / home loans 71%.
- Balance-transfer-outs spiked in Q1 vs March, triggering retention measures: rate concessions for borrowers with at least a 24-month good track record, a new BT-out incentive scheme, and slight sourcing-channel realignment.
Analyst Q&A
Q. Why is Repco's home-loan rate higher than banks and will the company diversify into other businesses?
Management attributed pricing to cost of funds of about 8.3% and its target segment of informal/non-salaried borrowers, and said there is no current plan to diversify; the HFC license restricts it to housing/mortgage loans.
Q. Did month-end cheque clearing affect reported Q1 disbursements and what is the monthly carryforward?
M. Raja confirmed ₹35–40 Cr of month-end disbursements routinely carry forward to the next month; June month-end cheque clearing affected Q1, but otherwise it is business as usual.
Q. Is disbursement momentum back to normal in July/August and has pricing/policy changed?
Management said July and August disbursements are on track for the ₹1,200–1,250 Cr Q2 target but declined to disclose specific monthly numbers, citing price-sensitive information; no major policy changes were made.
Q. Why did GNPA and stage-2 rise sequentially, and will recoveries outpace provisions?
Management attributed the increase to temporary transfer/promotion disturbance; it expects Q2 GNPA to return to about ₹405 Cr, supported by separate soft/chronic NPA verticals and SARFAESI action.
Q. Has Repco moved to encashment-basis accounting for disbursements and AUM?
Management confirmed that for three to four quarters Repco has booked disbursements, AUM and interest income only after cheque encashment.
Q. Are balance-transfer-outs rising and what is being done to retain good customers?
Management admitted a spike in Q1 BT-outs versus March and has introduced rate concessions and retention incentives to retain good customers.
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