HOMEFIRSTBSEQ4 & FY26March 31, 2026

Home First Finance Company Ind

9,680words
155turns
18analyst exchanges
3executives
Management on call
Manoj Viswanathan
MANAGING DIRECTOR
Nutan Gaba Patwari
CHIEF FINANCIAL
Sunil Anjana
HEAD OF TREASURY AND
Key numbers — 40 extracted
41.4%
execution for Home First. We ended the year with healthy growth, record disbursements in Q4, over 41.4% profit growth for the full year, improving asset quality, and a balance sheet that remains very w
INR15,878 crore
d in the right direction together. We continue to grow well. Our assets under management stood at INR15,878 crores as of March '26, up 24.9% year-on-year and 6.4% sequentially. Disbursement in Q4 was the highest
24.9%
continue to grow well. Our assets under management stood at INR15,878 crores as of March '26, up 24.9% year-on-year and 6.4% sequentially. Disbursement in Q4 was the highest ever at INR1,572 crores, u
6.4%
Our assets under management stood at INR15,878 crores as of March '26, up 24.9% year-on-year and 6.4% sequentially. Disbursement in Q4 was the highest ever at INR1,572 crores, up 23.5% year-on-year a
INR1,572 crore
arch '26, up 24.9% year-on-year and 6.4% sequentially. Disbursement in Q4 was the highest ever at INR1,572 crores, up 23.5% year-on-year and 19.3% q-o-q. For FY'26, the disbursement stood at INR5,424 crores,
23.5%
ear-on-year and 6.4% sequentially. Disbursement in Q4 was the highest ever at INR1,572 crores, up 23.5% year-on-year and 19.3% q-o-q. For FY'26, the disbursement stood at INR5,424 crores, a growth of
19.3%
quentially. Disbursement in Q4 was the highest ever at INR1,572 crores, up 23.5% year-on-year and 19.3% q-o-q. For FY'26, the disbursement stood at INR5,424 crores, a growth of 12.9% over FY25. The s
INR5,424 crore
at INR1,572 crores, up 23.5% year-on-year and 19.3% q-o-q. For FY'26, the disbursement stood at INR5,424 crores, a growth of 12.9% over FY25. The strong exit run rate in Q4 gives us confidence as we enter FY2
12.9%
year-on-year and 19.3% q-o-q. For FY'26, the disbursement stood at INR5,424 crores, a growth of 12.9% over FY25. The strong exit run rate in Q4 gives us confidence as we enter FY27. Profitability rem
INR540 crore
in Q4 gives us confidence as we enter FY27. Profitability remained robust. For FY26, PAT stood at INR540 crores, up 41.4% year-on-year. Reported return on equity for FY26 was 15.7%. And on a pre-money basis,
15.7%
FY26, PAT stood at INR540 crores, up 41.4% year-on-year. Reported return on equity for FY26 was 15.7%. And on a pre-money basis, adjusted ROE stood at 16.8%. Even as we delivered this performance, we
16.8%
ar. Reported return on equity for FY26 was 15.7%. And on a pre-money basis, adjusted ROE stood at 16.8%. Even as we delivered this performance, we continue to invest for the next phase of growth. Dur
Guidance — 20 items
Manoj Viswanathan
opening
“FY26 has been a year of resilience and disciplined execution for Home First.”
Manoj Viswanathan
opening
“For FY'26, the disbursement stood at INR5,424 crores, a growth of 12.9% over FY25.”
Manoj Viswanathan
opening
“The strong exit run rate in Q4 gives us confidence as we enter FY27.”
Manoj Viswanathan
opening
“For FY26, PAT stood at INR540 crores, up 41.4% year-on-year.”
Manoj Viswanathan
opening
“Reported return on equity for FY26 was 15.7%.”
Manoj Viswanathan
opening
“In UP, the team is being built, and we are preparing a strong base for FY28.”
Manoj Viswanathan
opening
“As we look ahead, we are entering FY27 from a position of strength.”
Nutan Gaba Patwari
opening
“For FY26, the cost-to-income stood at 32.5%, an improvement of 330bps y-o-y..”
Nutan Gaba Patwari
opening
“As we continue to invest for growth, we expect this ratio to remain broadly range-bound within 2.6% to 2.7%.”
Nutan Gaba Patwari
opening
“For FY26, profit after tax stood at INR540 crores, representing 41.4% y-o-y growth, return on assets of 3.9% and return on equity of 15.7%.”
Risks & concerns — 15 flagged
As against average principal outstanding growth of 5.5% on a q-o-q basis,in the interest income on term loans 2 lesser days in the quarter (Q4 Vs Q3) impacted 2.2%, 10bps PLR cut impacted by 80bps, and origination yields had an impact of another 80bps.
— Nutan Gaba Patwari
This is an essential element of our financial strategy to not carry any interest rate risk on our balance sheet.
— Nutan Gaba Patwari
As of Mar'26, our Capital to risk-weighted assets ratio (CRAR) stood at 44.1% with Tier I at 43.8%.As of Mar'25, prior to Apr’25 QIP, our capital adequacy stood at 32.8% with Tier I at 32.5%.
— Nutan Gaba Patwari
This positions us well to continue investing in growth while maintaining a disciplined risk framework.
— Nutan Gaba Patwari
And the other thing is, you'll remember first half of this fiscal year, we also spoke about weakness in asset quality, predominantly part of it coming from some impact of U.S.
— Abhijit Tibrewal
So the delinquencies were elevated and the collection was a bit difficult, also impacted by tariffs etc..
— Manoj Viswanathan
My next question is, how do we think about risk-adjusted yields when, say, compared to other pure play affordable housing finance players?
— Prashant Kothari
If the borrowing cost drops further from here, then there will be a corresponding decline in the yields.
— Manoj Viswanathan
I was seeing more around sort of risk-adjusted yield.
— Prashant Kothari
So originating leads, closing the transaction with the customer and collecting from more difficult customers.
— Manoj Viswanathan
The loan applications get locked in and there is a risk-adjusted rate that gets generated and communicated to the customer and there is a little bit of a cushion for negotiating that is left.
— Manoj Viswanathan
So assume that this run rate continues, will it exert some pressure on the margin side, because I assume that even in the high-ticket-size loans, competition is relatively higher and therefore margin pressure too?
— Jyoti Khatri
So adjusted for borrowing cost there is actually no decline in yields at all.
— Manoj Viswanathan
So over the next couple of years, do you think yield could remain under pressure given the competitive intensity to sustain growth?
— Suraj Das
It is little more difficult to predict what outcomes it will have on the origination side.
— Manoj Viswanathan
Q&A — 18 exchanges
Q
Yes. Thank you for taking my questions. Am I audible?
Manoj Viswanathan
Yes, Abhijit.
Q
Thank you. Manoj, two questions. One is, maybe near-term, what we have seen over the last one year. And then maybe I'll move to the second question. But the first question is more around, if you look at this financial year, which we just ended, the first part of the year was a little bit about weakness both in terms of demand as well as, I would say, asset quality. And then when we move to the third quarter, we saw some semblance of stability coming in. And then fourth quarter, obviously, we have ended on a high note, whether we look at the disbursement momentum, whether we look at the improve
Manoj Viswanathan
Yes. So, looking at the first half, so there were two or three things that were happening simultaneously. One was that we were just coming out of the whole overhang of the credit issue. So the delinquencies were elevated and the collection was a bit difficult, also impacted by tariffs etc.. There was a bit of sluggishness in demand as well at that point in time. And we were also internally going through some issues. Some of the locations were not staffed properly. There was some attrition and so on. So, all of these things were happening simultaneously at that point, and hence, a little bit of
Q
Hello. Two quick questions from my end. The first one would be that you mentioned that you're on track for growth in the Southern states in FY27. I just wanted to check how did our market share moved in, say, Karnataka and Tamil Nadu in FY26? And are there any specific competitors growing aggressively in these regions? That would be my first question. I'll come back with the second.
Manoj Viswanathan
Sure. So, market share in Tamil Nadu was not very strong to start with. And it would have further dropped a little bit in this last year because the growth was very muted in Tamil Nadu. But we will hopefully be able to make it up in the coming couple of years, because now the base is ready and the teams are there. So we should be able to catch up as far as Tamil Nadu is concerned. In Karnataka, it has been a fairly steady growth, except for a minor blip we had for one or two quarters because of the e-khata issue. Otherwise, we would have sustained our market share in Karnataka. Got it, got it.
Q
Hi sir. Thank you for giving me the opportunity. My question is pertaining to PLR. So we have taken a 10bps PLR cut last quarter. Now with rates likely to go up, systemic rates likely to go up, would we make any adjustment there? Or would we continue with our pricing strategy that we have as of today?
Nutan Gaba Patwari
Shreepal, we will wait for the repo hike, if at all, they were to happen in the later part of the year. We will also have to watch out how banks are repricing from the MCLR line. And only if we need, we will make the decision to hike. As I explained in my opening remarks, we have a fully floating book. And our history also has indicated that we have the capability to increase rates as well as reduce rates. And so we will take a call based on as and when the hike comes through. In the next one quarter, we are not seeing that as a possibility. In fact, I would say we should be able to maintain o
Q
Thanks for taking the question. So, not sure if the co-lending piece got addressed. So this quarter, it was low. How much time would it take to rectify this and again scale it up? I understand that the regulatory changes have led to this. But it is addressed to a larger extent and when should we again start seeing a pickup in this?
Manoj Viswanathan
It should get addressed this quarter. Some progress has been made in the first month of April. And by the end of May, hopefully, all the issues should get addressed. So I think June should be a normal month. Okay. So thereafter, the run rate of co-lending would be similar or maybe better than what we saw last year? That's right. And secondly, in terms of the bounce rates, we have heard from many that the bounce rates have been better in April than those of March. But I hear you mentioned that at least it's better than that of April of the previous year. But how has it been trending and is it s
Q
Hi, good afternoon. Thanks for taking the questions. My first question is on the sourcing rate. Is the 13% number average for the quarter or is that the exit sourcing rate?
Nutan Gaba Patwari
Average for the quarter. And where are we at the quarter-end, the exit rates? It's similar, Gaurav. It doesn't vary month-to-month. So, probably it will be 2bps plus or 2bps minus that will be range. The pricing is largely centrally driven in our case. So it's all algorithm based. The loan applications get locked in and there is a risk-adjusted rate that gets generated and communicated to the customer and there is a little bit of a cushion for negotiating that is left. So this is a process we have been following since several years. So generally, there will not be a month-to-month variation on
Q
Yes. Thanks for taking my question. One was with respect to the ticket size of the loans. This quarter around, we are seeing higher growth coming in from the high-ticket-size loans, from INR15 lakhs to INR20 lakhs and INR20 lakhs to INR25 lakhs ticket size. So what's the outlook there? So assume that this run rate continues, will it exert some pressure on the margin side, because I assume that even in the high-ticket-size loans, competition is relatively higher and therefore margin pressure too? So what is the outlook there?
Manoj Viswanathan
As we have been saying since last couple of years, there is a customer segment, the same customer who used to purchase a smaller house or a lower-ticket-size property earlier, is migrating upwards. But his or her challenges continue to remain the same in terms of difficulty in getting loans from the larger lenders. So we are not targeting a more premium customer as such. It's the same customer we are targeting. It's just that the requirements have gone up. The size of the price and price of houses have gone up. So which is why you're seeing if you look at there has been an increase in the tick
Q
Thanks for taking my question. Just wanted to understand how you are seeing asset quality on the ground in the month of April and I mean what is your assessment for the year? And also, what is your guidance on the credit cost side? Lastly, one specific question around collections. I mean, peers have been highlighting some collection issues in the state of Karnataka. I just wanted to get your assessment. Yes, those are my questions?
Manoj Viswanathan
So asset quality-wise, as I mentioned April experience has been good and it's been better than the last 2 years. So, it gives us a lot of confidence in terms of how it's going to pan out for the rest of the year, because if you remember last year April was much worse than March. But this year, we have not seen that. I mean, it's been much better than the last 2 years. And overall, for the coming year we feel that, if this is a kind of indicator, it should be good. The credit quality experience should be good for this year. We don't have any issues as far as Karnataka is concerned. Generally, o
Q
Yes. Thank you sir for the opportunity.
Management
Q
Thank you for the opportunity for the question. I had one quick question, what has changed on the sourcing strategy in Pune and Mumbai. And any plan to replicate the same in some other locations?
Manoj Viswanathan
Yes. So, Mumbai-Pune are more formal apartment markets, where the sourcing largely comes from the developers who are building housing projects. We have developed a good strategy to kind of tap into that market and get leads from there. We already had a good, similar you can say, sourcing structure in places like Ahmedabad, Surat, etc., which are large developer-led markets. So we've managed to replicate that well in places like Mumbai and Pune, where banks used to be much stronger in these markets. So we have been able to kind of penetrate that. So that is the main difference in the sourcing s
Q
Hi, thanks ma’am. Two questions. First, if I look at the number of employees per branch, it has steadily increased, let us say, from 9 in FY23 to almost 11 now. Do you believe further strengthening of the manpower will be required given probably the higher attrition in the sector and also the competitive intensity in the sector? This number can go up further. What is your opinion on that? So that is point one. Second question on this origination yield, I mean, looking beyond the quarterly movements, you have taken a 35-basis-point PLR increase in FY25, still the yields remain broadly flat on F
Manoj Viswanathan
Okay. So, on the first question, as far as the number of employees per branch is concerned, there will be some fluctuation. So, for example, if we add another, let's say, 30 branches next year, that number can maybe come down for a couple of quarters and then again pick up. But broadly, it will be in that 9 to 10-11 range. It's not going to substantially jump up. It will only gradually move up as the company scales up. So maybe 2 to 3 years down the line, that number can be a higher number. But otherwise, broadly, it will range bound in that 9 to 12 number. As far as the yields are concerned,
Q
Thank you so much for the opportunity. My question was on the similar lines of Suraj, but let us say do we really see the need to cut PLR further at least in the short term if the borrowing rates especially the incremental borrowing rates are broadly stable vis-a-vis the book?
Nutan Gaba Patwari
Not at the moment. We have already done with the 10 basis points in January. So we will want to stay put for now. And this PLR cut, is it effective for the entire book and is it transmitted over time., PLR cut has to get transmitted to the entire book. Yes. Okay. Sure.
Q
Hi, thanks for taking my question. If I look at the AUM growth trajectory, we've come down from around 30% to around 25%-odd. What gives us conviction and confidence that you will sustain this trajectory? Are we actively going to shift into segments or is it the same segment that we pursue? Are there liability-side tailwinds? What is it that gives you this conviction that this 25% will kind of remain here and not further taper down?
Manoj Viswanathan
So one is the organizational distribution strength that we have built in terms of our connector network, branches, distribution, RMs etc, that we have across the country. Last year for a couple of quarters, we were still in the process of rebuilding that. But now we have completed that process and our delivery of the last two quarters gives us the confidence that yes, this is a good formula to kind of use or keep building on. And that is what gives us the confidence that we should be able to do this 25% growth. So as far as FY27 is concerned, our exit momentum, our continued disbursal in April
Q
Hi, good evening. Thank you for the opportunity. Sir, just wanted to understand this growth that we are forecasting, what proportion would come from home loans and what proportion would be from LAP? And how do we think of the demand with the West Asia crisis? Is it going to have a dip in terms of the down payment capabilities? Any kind of uptick that we are seeing in demand may be because of the PMAY or is it a very stringent PMAY this time around? So I just wanted to pick your brains on these aspects.
Manoj Viswanathan
Yes. So our mix is likely to remain the same. We are looking at somewhere between 15% to 20% loan against property. We are somewhere in the middle of that 16% or 17%. So the ratio of housing to LAP will broadly remain in the same ballpark, which is about 80%-20%. So 80% housing and 20% loan against property. So that will be the mix. As far as the West Asia crisis is concerned, at the moment, we are not seeing any impact on the demand. So hopefully, it should be behind us soon and things will move ahead. So as of now, we are not seeing any drop in demand. April has also been fairly good. On PMA
Q
Thank you for giving me the opportunity. Sir, how much is write-off of bad debt from the profit and loss account this year and how many units did we auction?
Manoj Viswanathan
Total write-off has been – this year has been about INR36 crores. Okay. So you think this amount is extraordinarily high? It's the scale of the business is growing. So it's more or less in line with the growth in the business. And how many units we auction? Sir we auctioned anywhere between 50 and 100 units a month. So for the year, it will be around 1,000 units. And sir AUM growth we achieved between March '23 and March '26 is 30% CAGR. Same growth can we expect tover next 3 years? So we have guided to a 25% growth, sir. That I have listened. But can it be 30%, not possible in the current cir
Q
Sir, just one question on the connectors. I think there are many players who are increasing the connector fees. Just wanted to know, has there been any higher demand from their side, even in your case? And if you can highlight how the connector fees have moved since the last few years and maybe how they should trend going forward?
Manoj Viswanathan
Yes. So, this is an ongoing negotiation with the connectors. So, any connector, whatever fee structure he is at, if you are going to ask him, he's going to always want a higher fee. So that is a constant negotiation with them. How we normally address that is by also addressing other issues that the connectors have, which are timely payouts, a wider bouquet of products and faster turnaround. A faster turnaround to some extent compensates for the higher fees. Because if they're able to turn around one more case or two more loans in a particular month, that more than compensates for the higher co
Q
Yes. Thank you so much for the opportunity. Great set of results and really commendable performance on the asset quality. Just wanted to quickly understand what the issue is with Tamil Nadu and Telangana is. Is it just a human capital issue or is it something else that you're seeing on the ground?
Manoj Viswanathan
No. As we had mentioned, it is, I think, largely to do with internal teams and building the team. But now those things are behind us and we should have a good year as far as Tamil Nadu and Telangana are concerned. Understood. And the other question is on strategy. So, in your opening remarks, you had said that you have successfully implemented agentic AI, and some piece of work has already been automated. So, how are we thinking? Will it increase our productivity in terms of growth or will it increase the productivity in terms of opex cost? So as of now can more confidently predict the outcome
Q
Thank you, everyone, for joining us today and for your continued interest in Homefirst. We hope we were able to address your questions satisfactorily. For any further queries, please feel free to reach out to Sunil Anjana or write to us at investor.relations@homefirstindia.com. Thank you.
Management
Speaking time
Manoj Viswanathan
52
Moderator
20
Nutan Gaba Patwari
10
Prashant Kothari
8
Shreepal Doshi
7
Meghna Luthra
7
Nischint Chawathe
7
Shubhranshu Mishra
7
Ravi Naredi
6
Gaurav Khandelwal
5
Opening remarks
Sunil Anjana
Thank you, Farah. Good afternoon, ladies and gentlemen, and welcome to Home First Finance Company's Earnings Conference Call to discuss the financial results for the quarter and financial year ended March 31, 2026. We hope you have had the chance to review our investor presentation and press release, both of which are available on our website and stock exchanges. As per our practice, we have also uploaded an Excel fact sheet containing historical data on our website for your easy reference. From the management, we have with us today Mr. Manoj Viswanathan, MD and CEO and Ms. Nutan Gaba Patwari, CFO. With that, I now invite Mr. Viswanathan to share his insights on overall performance and outlook. Over to you, sir.
Manoj Viswanathan
Thank you, Sunil. Good afternoon, everyone, and thank you for joining us today. FY26 has been a year of resilience and disciplined execution for Home First. We ended the year with healthy growth, record disbursements in Q4, over 41.4% profit growth for the full year, improving asset quality, and a balance sheet that remains very well capitalized. What is important to us is not any one of these metrics in isolation, but the fact that all of them moved in the right direction together. We continue to grow well. Our assets under management stood at INR15,878 crores as of March '26, up 24.9% year-on-year and 6.4% sequentially. Disbursement in Q4 was the highest ever at INR1,572 crores, up 23.5% year-on-year and 19.3% q-o-q. For FY'26, the disbursement stood at INR5,424 crores, a growth of 12.9% over FY25. The strong exit run rate in Q4 gives us confidence as we enter FY27. Profitability remained robust. For FY26, PAT stood at INR540 crores, up 41.4% year-on-year. Reported return on equity f
Nutan Gaba Patwari
Thank you, Manoj, and good afternoon, everyone. I will take you through the key financial highlights for the quarter and the full year. Let us start with the income statement. Total income for the quarter stood at INR505 crores, up by 21.3% Y-o-Y and 4.4% q-o-q.-on- quarter. Specifically, the interest on term loans went up from INR406 crores in Q3 to INR412 crores in Q4, presenting 1.6% q-o-q increase. As against average principal outstanding growth of 5.5% on a q-o-q basis,in the interest income on term loans 2 lesser days in the quarter (Q4 Vs Q3) impacted 2.2%, 10bps PLR cut impacted by 80bps, and origination yields had an impact of another 80bps. Portfolio yields, excluding co-lending, stood at 13.2%, while disbursal yields for the quarter stood at 13%, reflecting continued pricing discipline and healthy customer acquisition quality. On the liability side, through proactive borrowing mix management, we were able to contract our cost of borrowing, excluding co-lending, by 10 basis p
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