Home First Finan Q2 FY27 Results (NSE: HOMEFIRST)
Signal: Earnings grew
The read
The trajectory remains constructive: Q2FY27 total income grew 18.4% YoY to ₹5,670.42 million while PAT growth accelerated to 29.1% at ₹1,701.92 million, helped by impairment expense growth of only 1.1% and finance-cost growth of 10.9%; the key monitor is whether cash conversion improves from H1 operating cash outflow of ₹14,151.70 million as loan assets expand.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹567.04 Cr | +18.4% | +5.0% |
| Net profit | ₹170.19 Cr | +29.1% | |
| EPS | ₹16.28 | +27.6% | |
| EBIT margin | 0% |
P&L walk
Total income rose 18.4% YoY to ₹5,670.42 million and PAT grew 29.1% to ₹1,701.92 million, as finance costs and impairment expense grew slower than revenue while employee costs declined sequentially.
Key positives
- PAT of ₹1,701.92 million grew 29.1% YoY, ahead of total-income growth of 18.4%, while finance costs grew 10.9% and impairment expense grew only 1.1%.
- Gross NPA was 1.74% and net NPA was 1.34%, with a Stage 3 provision coverage ratio of 23.60%.
- Basic EPS rose 27.6% YoY to ₹16.28, broadly tracking the 29.1% PAT increase.
- Liquidity coverage ratio remained high at 147.57%, while secured NCDs carried security cover of at least 1.11 times under the stated terms.
Key concerns
- Operating cash flow was negative at ₹14,151.70 million in H1FY27 versus negative ₹9,204.77 million in H1FY26, reflecting continued cash absorption by loan growth.
- Debt-equity ratio stood at 2.63x, and H1FY27 included ₹1,500.00 million of proceeds from non-convertible debentures, highlighting reliance on debt funding for expansion.
- Net NPA of 1.34% and Stage 3 provision coverage of 23.60% leave credit-cost sensitivity as the main earnings-quality monitor.
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