Can Fin Homes Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Can Fin Homes Ltd filed with BSE on 24 Jul 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Can Fin Homes reported Q1 FY27 disbursements of Rs 2,609 crore, ahead of its Rs 2,500 crore projection, with growth across all six geographic zones and both salaried and self-employed segments. Management said prepayments and part-prepayments rose, pushing the loan book rundown to Rs 1,857 crore versus Rs 1,730 crore in Q4 FY26, while yield stood at 9.81%, spread at 2.83% and NIM at 3.81%. The company also discussed the rollout of a new IT platform across branches and reported ROA of 2.39% and ROE above 18% for the quarter.
2 statements from this call are not shown because their supporting quotes could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Disbursements: Rs 2,609 crore (Q1 FY27)
p. 3
“So against INR2,500 crores, which was what was planned and what was projected, we have achieved INR2,609 crores.”
Suresh Iyer, page 3 of the filed PDF · View the filing
Rundown/prepayment: Rs 1,857 crore (Q1 FY27)
p. 4
“we are having a rundown of INR1,857 crores”
Suresh Iyer, page 4 of the filed PDF · View the filing
BT out: Rs 408 crore (Q1 FY27)
p. 4
“BT out, which was INR400 crores in Q4 of last year has increased to INR408 crores”
Suresh Iyer, page 4 of the filed PDF · View the filing
Part prepayment amortization: Rs 1,072 crore (Q1 FY27)
p. 4
“as against INR976 crores in Q4 of last year, which was part prepayment amortization, the number has gone up to INR1,072 crores”
Suresh Iyer, page 4 of the filed PDF · View the filing
AUM growth: 10.8% (Q1 FY27)
p. 4
“this year, in Q1, it has inched up to 10.8% or 11% as we have reported, but 10.8% in real”
Suresh Iyer, page 4 of the filed PDF · View the filing
Yield: 9.81% (Q1 FY27)
p. 5
“our yield would come down to 9.81%, which, in fact, we have been able to sustain throughout the quarter”
Suresh Iyer, page 5 of the filed PDF · View the filing
Cost of borrowing: 6.98% (Q1 FY27)
p. 5
“we had indicated that our cost of borrowing would be 6.99%, which in fact has ended at 6.98%”
Suresh Iyer, page 5 of the filed PDF · View the filing
Spread: 2.83% (Q1 FY27)
p. 5
“our spread is 2.83% as against 2.81% as we had indicated in the beginning of the year”
Suresh Iyer, page 5 of the filed PDF · View the filing
NIM: 3.81% (Q1 FY27)
p. 5
“consequently, our NIM is 3.81%, which also is we had given a guidance for 3.75%”
Suresh Iyer, page 5 of the filed PDF · View the filing
HL disbursement: Rs 1,650 crore (Q1 FY27)
p. 11
“As against that, Q1 FY27, we have done 2,609 crores, of which 1,650 crores is HL and 958 crores is NHL.”
Suresh Iyer, page 11 of the filed PDF · View the filing
ROA: 2.39% (Q1 FY27)
p. 18
“this quarter, we have done 2.39% as the ROA and 18% plus in terms of ROE, at least for the quarter”
Suresh Iyer, page 18 of the filed PDF · View the filing
Cost-to-income ratio: 19%+ (Q1 FY27)
p. 15
“from the 18% odd numbers we have now moved to the 19% plus cost-to-income ratio”
Suresh Iyer, page 15 of the filed PDF · View the filing
IT sector customer exposure: 6% (Q1 FY27)
p. 13
“our IT sector exposure is only about 6% in terms of the number of customers who are associated with the IT sector and have taken a loan from us”
Suresh Iyer, page 13 of the filed PDF · View the filing
CIBIL score above 700 proportion: 82% (Q1 FY27)
p. 7
“Today, we are 82% of our loans are now having a CIBIL score of more than 700.”
Suresh Iyer, page 7 of the filed PDF · View the filing
Approved projects (APF): 331 projects (Q1 FY27)
p. 6
“we now have 331 approved projects as at the end of the quarter”
Suresh Iyer, page 6 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Disbursements — INR3,000 crores · Q2 FY27
stated firmly by Suresh Iyer
p. 9
“No, I think we are confident that 3,000 we don't want to change. We are -- I think we will be able to meet that number.”
Suresh Iyer, page 9 of the filed PDF · View the filing
AUM growth — 14% · FY27
stated firmly by Suresh Iyer
p. 5
“So we are still in line with the -- what we had projected at 14% AUM growth”
Suresh Iyer, page 5 of the filed PDF · View the filing
NIM — 3.81% plus
stated conditionally by Suresh Iyer
p. 6
“we are confident that the NIM will be maintained at 3.81% plus and we should not have a problem in that”
Suresh Iyer, page 6 of the filed PDF · View the filing
Credit cost — 10 basis points · FY27
stated conditionally by Suresh Iyer
p. 6
“we are confident that, you know, we should be able to maintain our credit cost guidance of 10 basis points”
Suresh Iyer, page 6 of the filed PDF · View the filing
Cost-to-income ratio — 19.5% · FY27
stated firmly by Suresh Iyer
p. 15
“Current year we do envisage that it will be hovering around 19.5% cost-to-income ratio.”
Suresh Iyer, page 15 of the filed PDF · View the filing
Cost-to-income ratio — 18% or thereabouts · three years
stated as an aspiration by Suresh Iyer
p. 15
“I guess, we would in another three years down the line, we would again would want to bring it to 18% or thereabouts.”
Suresh Iyer, page 15 of the filed PDF · View the filing
Disbursements for the year — INR13,200 crores, INR13,400 crores · FY27
stated conditionally by Suresh Iyer
p. 13
“If that means we'll have to push a little more in terms of disbursement, INR13,000 crores will become INR13,200 crores, INR13,400 crores or whatever.”
Suresh Iyer, page 13 of the filed PDF · View the filing
Tax rate — 21% · FY27
stated firmly by Abhishek Mishra
p. 19
“Yes, 21% because of some DTA benefits, and this will be stable rate.”
Abhishek Mishra, page 19 of the filed PDF · View the filing
ROA and ROE — 2.4% ROA and 18% ROE · FY27
stated conditionally by Suresh Iyer
p. 18
“there is no reason to believe or nothing to reflect that we may not be able to achieve it”
Suresh Iyer, page 18 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said demand has not slowed and liquidity remains available, but underwriting has been tightened with higher CIBIL thresholds and additional early-warning monitoring.
Answered by Suresh Iyer
Asked by Shreepal Doshi: How does management see asset quality trends over the next three-six months given macro uncertainty, and have underwriting norms changed?
p. 7
“Today, we are 82% of our loans are now having a CIBIL score of more than 700.”
Suresh Iyer, page 7 of the filed PDF · View the filing
Management confirmed the Rs 3,000 crore Q2 target remains unchanged based on the smooth experience in the pilot branches.
Answered by Suresh Iyer
Asked by Rajiv Mehta: Will the Q2 disbursement target of Rs 3,000 crore hold despite the IT rollout across more branches?
p. 9
“so 3,000 crores that we are targeting for Q2 stays, that number stays.”
Suresh Iyer, page 9 of the filed PDF · View the filing
Management said blended yield is about 9.8%, with rates ranging from around 8.4% for the best salaried customers up to about 12.5% for higher-risk non-salaried, non-housing customers.
Answered by Suresh Iyer
Asked by Rajiv Mehta: What is the pricing range across ticket sizes given the shift toward higher-ticket loans?
p. 10
“So anywhere between 8.4 to around 12.5 would be the range, when blended comes to 9.8.”
Suresh Iyer, page 10 of the filed PDF · View the filing
Management said no major impact has been seen, with Karnataka NPA lower than the prior year and delinquency trends stable.
Answered by Suresh Iyer
Asked by Shubhranshu Mishra: Is IT-sector job disruption in Bangalore affecting loan offtake or delinquency?
p. 10
“So far, there has been no impact.”
Suresh Iyer, page 10 of the filed PDF · View the filing
Management said the main competitors remain LIC and Bajaj Housing Finance rather than banks, and prepayment/BT-out levels have stayed roughly stable.
Answered by Suresh Iyer
Asked by Abhijit Tibrewal: Is competition from banks increasing in the higher-ticket-size segment where Can Fin is now focusing?
p. 12
“Our main BT happens with LIC and Bajaj only.”
Suresh Iyer, page 12 of the filed PDF · View the filing
Management attributed it to conservative underwriting and customer selection policies maintained over two decades, acknowledging it has constrained growth at times.
Answered by Suresh Iyer
Asked by Kunal Dhokas: How has Can Fin kept cumulative credit write-offs to about Rs 20 crore since 2001?
p. 15
“it has been a very safe lending, conservative policies, conservative lending has been followed.”
Suresh Iyer, page 15 of the filed PDF · View the filing
Management explained the increase is mainly driven by customer part-prepayments rather than BT-out, exacerbated by the widening rate differential with banks, and said retention efforts are underway.
Answered by Suresh Iyer
Asked by Sonal: Why has the loan book rundown been elevated for four quarters and what is the target level going forward?
p. 17
“the bigger challenge for us is the part repayment and not BT out, because BT out is just about INR408 crores out of INR1,857 crores.”
Suresh Iyer, page 17 of the filed PDF · View the filing
Management said Q1 ROA was 2.39% and ROE above 18%, and expressed confidence in achieving full-year targets given controlled credit costs and stable NIM.
Answered by Suresh Iyer
Asked by Prachi: Is the company still confident of achieving its 2.4% ROA and 18% ROE targets for FY27 given softer Q1 performance?
p. 18
“there is no reason to believe or nothing to reflect that we may not be able to achieve it”
Suresh Iyer, page 18 of the filed PDF · View the filing
Management said self-employed customers earn about 0.5 percentage points higher yield than salaried, which offsets their higher NPA ratio, making the segment margin accretive.
Answered by Suresh Iyer
Asked by Prachi: How does the SENP segment compare with salaried in terms of yield, spread and credit cost?
p. 19
“self-employed would be at least 0.5 percentage higher in terms of the ROI as compared to a housing customer”
Suresh Iyer, page 19 of the filed PDF · View the filing
Risks flagged
Elevated part-prepayments increasing loan book rundown
p. 4
“what has actually increased resulting in the higher rundown, is that part payments from the customers have increased.”
Suresh Iyer, page 4 of the filed PDF · View the filing
Widening interest rate differential with banks making retention harder
p. 16
“this difference, which was 55 basis points has now increased to more than 1 percentage point, which is difficult to convince a customer”
Suresh Iyer, page 16 of the filed PDF · View the filing
Rising incremental cost of bank borrowings for new loans
p. 7
“the banks have been quoting anywhere between 7.25% to 7.5%”
Suresh Iyer, page 7 of the filed PDF · View the filing
IT-sector job losses potentially affecting salaried customer segment
p. 10
“there are job losses. That's a fact.”
Suresh Iyer, page 10 of the filed PDF · View the filing
Bandwidth constraints during IT system rollout across remaining branches
p. 9
“when we do the next 50 or 100 in the next month, we may not -- it will take a little longer to do the handholding.”
Suresh Iyer, page 9 of the filed PDF · View the filing
Rising cost-to-income ratio from IT transformation expenses
p. 15
“from the 18% odd numbers we have now moved to the 19% plus cost-to-income ratio.”
Suresh Iyer, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.