Home First Finan Q1 FY27 Results (NSE: HOMEFIRST)
Signal: Earnings grew
The read
A strong start to FY27 with AUM growth of 25.7% YoY to ₹16,938 Cr, record disbursements of ₹1,628 Cr (+31% YoY), and PAT growth of 34.5% YoY to ₹160 Cr. Margins held (spread 5.3%, +20bps YoY) and asset quality remained stable (GNPA 1.8%, credit cost 40 bps), while operating leverage improved as opex-to-assets fell 40bps QoQ to 2.8%. The company added 4 branches and 133 employees, signalling continued investment in growth while maintaining profitability. Guidance for ~25% AUM growth provides confidence in near-term trajectory.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹332.2 Cr | 29.9% | 7.1% |
| Net profit | ₹16 Cr | 34.5% | |
| EBIT margin | 0% |
P&L walk
Net total income grew 29.9% YoY to ₹332 Cr, outpacing AUM growth of 25.7%, driven by stable spreads (5.3%, +20bps YoY) and operating leverage as opex-to-assets was contained at 2.8%. PAT grew faster at 34.5% YoY to ₹160 Cr, helped by contained credit cost of 40 bps and stable asset quality (GNPA 1.8%). The sequential improvement (+7.0% QoQ PAT) reflects steady business momentum and disciplined cost management.
Key positives
- AUM grew 25.7% YoY to ₹16,938 Cr, in line with guided trajectory of ~25%.
- Disbursements hit a record ₹1,628 Cr, up 31.0% YoY and 3.6% QoQ, showing strong demand in affordable housing.
- PAT grew 34.5% YoY to ₹160 Cr, outpacing AUM growth on stable spreads and contained opex.
- Spread (ex co-lending) improved 20bps YoY to 5.3%, reflecting disciplined pricing and liability management.
- Asset quality resilient: GNPA stable at 1.8% with credit cost contained at 40 bps.
- RoE improved 50bps YoY and 50bps QoQ to 14.5%.
- Added 4 branches and 133 net employees (mostly customer-facing), expanding reach to 175 branches and 373 touchpoints.
- Customer franchise strong: 85% loans approved within 48 hrs, 98% non-cash collections, 46% customers registered on app.
Key concerns
- Opex-to-assets inched up 10bps YoY to 2.8% as the company invests in branch expansion and employee additions.
- DPD 30+ / POS ticked up 10bps QoQ to 3.2% (though flat YoY at 0 bps change) — warrants monitoring.
- Likely CFO transition: Nutan Gaba Patwari resigned effective Aug 31, 2026 — potential execution risk during handover.
Research and educational content only. Not investment advice.