Can Fin Homes Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Can Fin Homes Ltd filed with BSE on 04 May 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 FY26 disbursements of Rs 10,531 crore, marginally above its Rs 10,500 crore guidance, with Q4 disbursements at an all-time high of Rs 3,245 crore. AUM growth for the year came in at 10.44% against an original target of 11%-12%, as prepayments and rundown were higher than initially projected. Management also reported a reduction in GNPA to 0.85%, a shift of most of the loan book to quarterly interest reset, and two one-time items affecting profit: a Rs 46 crore DTA provisioning impact and a Rs 13.5 crore income tax refund.
1 statement from this call is not shown because its supporting quote 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 10,531 crore (FY26)
p. 3
“the company has ended with a disbursement marginally in excess of that figure of INR10,531 crores”
Suresh Iyer, page 3 of the filed PDF · View the filing
Q4 disbursements: Rs 3,245 crore (Q4 FY26)
p. 3
“Q4 ending at an all-time high of INR3,245 crores”
Suresh Iyer, page 3 of the filed PDF · View the filing
Karnataka disbursement growth: 7% (FY26)
p. 3
“we have ended with a 7% disbursement growth in Karnataka”
Suresh Iyer, page 3 of the filed PDF · View the filing
Telangana disbursement: Rs 1,147 crore (FY26)
p. 4
“we ended up with INR1,147”
Suresh Iyer, page 4 of the filed PDF · View the filing
AUM growth: 10.44% (FY26)
p. 4
“So we've ended up with around 10.44%.”
Suresh Iyer, page 4 of the filed PDF · View the filing
Q4 BT out: Rs 400 crore (Q4 FY26)
p. 4
“it has been about INR400 crores in Q4 considering that Q4 normally is a very hectic and a very high pressure kind of a quarter”
Suresh Iyer, page 4 of the filed PDF · View the filing
Total rundown: Rs 1,730 crore (Q4 FY26)
p. 4
“As against that, it has been INR1,730 which is very much in line.”
Suresh Iyer, page 4 of the filed PDF · View the filing
GNPA: 0.85% (FY26)
p. 4
“So we ended with 0.85% in terms of our NPA numbers.”
Suresh Iyer, page 4 of the filed PDF · View the filing
Credit cost: 10 basis points (FY26)
p. 5
“while it has been about 10 basis points for the current year as a whole.”
Suresh Iyer, page 5 of the filed PDF · View the filing
Portfolio on quarterly reset: 85% (as of Q4 FY26)
p. 5
“now almost 85% plus of our customers are at a quarterly reset”
Suresh Iyer, page 5 of the filed PDF · View the filing
Book yield: 9.8% (FY27 opening)
p. 5
“the entire book yield will come down to 9.8%”
Suresh Iyer, page 5 of the filed PDF · View the filing
Spread: 2.8% (FY27 opening)
p. 5
“we will be able to retain the spread of 2.8%, starting from day 1 in the -- this current financial year also.”
Suresh Iyer, page 5 of the filed PDF · View the filing
DTA one-time impact: Rs 46 crore (Q4 FY26)
p. 5
“That's a onetime impact -- additional impact of INR46 crores.”
Suresh Iyer, page 5 of the filed PDF · View the filing
Income tax refund: Rs 13.5 crore (Q4 FY26)
p. 5
“there was also the closure of our income tax refund status, where INR13.5 crores income tax refund even was received”
Suresh Iyer, page 5 of the filed PDF · View the filing
Profit excluding one-time items: Rs 1,027 crore (FY26)
p. 5
“our profit for the entire year would be as against INR1,085 crores, it would be INR1,027 crores, which is also a 20% growth over the last year profit of INR857 crores”
Suresh Iyer, page 5 of the filed PDF · View the filing
PCR: 56% (FY26)
p. 11
“our PCR has slightly gone up from 49% to 56% this year”
Suresh Iyer, page 11 of the filed PDF · View the filing
Borrowing cost: 6.99% (as of April 1)
p. 13
“our present borrowing cost is up 6.99% to start with as on first of April”
Suresh Iyer, page 13 of the filed PDF · View the filing
Bank borrowing proportion: 62% (current)
p. 17
“if you would see our presentation from 55%, which was our bank borrowing, it has gone up to 62%.”
Suresh Iyer, page 17 of the filed PDF · View the filing
NCD blended cost: 7.66%-7.67% (current)
p. 17
“our NCDs are at the highest cost of funds for us, which is on a blended outstanding portfolio in NCDs is around 7.67%, 7.66%.”
Suresh Iyer, page 17 of the filed PDF · View the filing
Fresh CP rate: 6.45% (April)
p. 17
“we raised in the month of April, we raised CP fresh CP at 6.45%.”
Suresh Iyer, page 17 of the filed PDF · View the filing
Full year opex: Rs 311 crore (FY27 projection)
p. 14
“in terms of our the full year opex, it's about INR311 crores, of which INR177 crores is for the employee cost and the other cost is about INR134 crores.”
Suresh Iyer, page 14 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.
Disbursement — Rs 13,000 crore · FY27
stated firmly by Suresh Iyer
p. 4
“with a INR13,000 crores disbursement target that we have kept for the year”
Suresh Iyer, page 4 of the filed PDF · View the filing
AUM growth — 14% · FY27
stated conditionally by Suresh Iyer
p. 4
“we should be having a net addition of about INR6,000 crores to the book in FY '27, which would result in about a 14% AUM growth.”
Suresh Iyer, page 4 of the filed PDF · View the filing
Rundown — Rs 7,000 crore · FY27
stated firmly by Suresh Iyer
p. 4
“we may have a rundown of about INR7,000 crores for the entire year.”
Suresh Iyer, page 4 of the filed PDF · View the filing
Karnataka disbursement growth — 15% · FY27
stated as an aspiration by Suresh Iyer
p. 3
“in this year, we are targeting a 15% growth in disbursement in Karnataka.”
Suresh Iyer, page 3 of the filed PDF · View the filing
Credit cost — 15 basis points · FY27
stated conditionally by Suresh Iyer
p. 5
“we would still like to continue with the guidance of 15 basis points, although we don't see any stress and it could well be below that by the end of FY '27.”
Suresh Iyer, page 5 of the filed PDF · View the filing
Spread — 2.75% · FY27
stated conditionally by Suresh Iyer
p. 5
“we therefore continue the guidance of 2.75% spread and 3.75% on the NIM for the FY '27.”
Suresh Iyer, page 5 of the filed PDF · View the filing
ROA — 2.4% · FY27
stated as an aspiration by Suresh Iyer
p. 6
“overall, next year, we hope to be able to maintain our ROA of 2.4%.”
Suresh Iyer, page 6 of the filed PDF · View the filing
ROE — 18% plus · FY27
stated as an aspiration by Suresh Iyer
p. 6
“we hope to have an ROE of 18% plus.”
Suresh Iyer, page 6 of the filed PDF · View the filing
Branch expansion — 28 branches · first half of FY27
stated firmly by Suresh Iyer
p. 8
“this year, we are looking at 28 branches to be opened, which again, we would be opening in the first half of the year.”
Suresh Iyer, page 8 of the filed PDF · View the filing
Sales team size — 150 people · FY27
stated firmly by Suresh Iyer
p. 8
“sales team this year, we are looking at increasing it from about 80, 90 to about 150 people.”
Suresh Iyer, page 8 of the filed PDF · View the filing
Zone-wise disbursement growth — 25% growth · FY27
stated as an aspiration by Suresh Iyer
p. 10
“Growth next year, we are almost targeting an almost similar 25% growth across all the zones because that is what it is.”
Suresh Iyer, page 10 of the filed PDF · View the filing
IT-related incremental cost — Rs 40 crore · FY27
stated firmly by Suresh Iyer
p. 6
“Going forward, we would have a little impact in the current financial year of about INR40 crores, which we have been talking about on our cost because of our IT implementation.”
Suresh Iyer, page 6 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 believes the BT-out rate has likely peaked given marginal increases and benefits already passed to customers.
Answered by Suresh Iyer
Asked by Siddhant: Has the shift to quarterly resets peaked the BT-out/rundown rate?
p. 7
“I would probably assume so because as I mentioned, if I look at the data today, our BT outs in Q4 have marginally increased and that is also probably a function of the increased portfolio.”
Suresh Iyer, page 7 of the filed PDF · View the filing
Management said the company had consciously focused more on LAP due to e-khata issues in Karnataka.
Answered by Suresh Iyer
Asked by Nipun Khemka: Why was housing loan book growth under 5% this fiscal?
p. 7
“it was a conscious effort to have a increase in our non-housing -- and to some extent, it was also because we had to focus more on LAP”
Suresh Iyer, page 7 of the filed PDF · View the filing
Management cited new branch contributions and expanded sales team as the key growth drivers.
Answered by Suresh Iyer
Asked by Pavan Kumar: How will the company achieve the higher disbursement target given limited branch growth?
p. 8
“the new branch strategy that we have done has really helped in the last financial year.”
Suresh Iyer, page 8 of the filed PDF · View the filing
Management attributed this to an amortization accounting impact rather than an actual reduction in DSA outflow.
Answered by Suresh Iyer
Asked by Pavan Kumar: Why did fees and commission expense fall despite similar DSA proportion?
p. 10
“it is only an impact of the amortization, and it has impacted both in the income as well as on the expense side.”
Suresh Iyer, page 10 of the filed PDF · View the filing
Management said it does not expect to add further management overlay and sees no current stress from geopolitical events.
Answered by Suresh Iyer
Asked by Shubhranshu Mishra: Is management adding to credit-cost overlays given geopolitical risks?
p. 11
“in terms of management overlay per se, we don't expect to -- we don't -- we will not be adding anything over that.”
Suresh Iyer, page 11 of the filed PDF · View the filing
Management broke down Q4 rundown into BT-out, self-funded closures, and part-prepayment/amortization.
Answered by Suresh Iyer
Asked by Shubhranshu Mishra: What proportion of prepayment applications actually move to competitors via BT-out?
p. 12
“INR400 crores is BT out, INR360 crores is where customers have closed their loans from their own funds”
Suresh Iyer, page 12 of the filed PDF · View the filing
Management confirmed the Rs 40 crore net impact for the full year includes depreciation of capex and opex.
Answered by Suresh Iyer
Asked by Pavan Kumar: Is the Rs 40 crore incremental IT expense for the entire year and does it include capex amortization?
p. 14
“the net impact will be INR40 crores for the full year okay?”
Suresh Iyer, page 14 of the filed PDF · View the filing
Management said the pickup was largely seasonal, with demand remaining healthy in their target segment though affordable housing showed a slowdown.
Answered by Suresh Iyer
Asked by Abhijit Tibrewal: Was the Q4 disbursement pickup seasonal or structural, and how strong is underlying demand?
p. 16
“Probably, yes, there is a definite slowdown in the affordable segment.”
Suresh Iyer, page 16 of the filed PDF · View the filing
Management said spreads should hold near 2.8% with a conservative guidance of 2.75%, with risk only if rates rise for the remaining 15% not on quarterly reset.
Answered by Suresh Iyer
Asked by Abhijit Tibrewal: What is the outlook on margins given the mix of quarterly reset and NHB repricing?
p. 16
“we are quite confident that the 2.8%, which is there is kind of is there.”
Suresh Iyer, page 16 of the filed PDF · View the filing
Management explained Bajaj typically wins via takeover-plus-top-up loans where Can Fin cannot match the additional amount offered.
Answered by Suresh Iyer
Asked by Andrey Purushottam: Why is Bajaj Finance winning BT-out business despite the customer already being sanctioned by Can Fin?
p. 18
“it's normally a takeover plus top up. And many times, we are not able to match the kind of top up that they are able to offer.”
Suresh Iyer, page 18 of the filed PDF · View the filing
Risks flagged
Remaining 15% of customers on annual reset create a lag effect if interest rates rise
p. 16
“The only thing would be in case of rate going up, yes, this 15% will have an impact, where there will be a lag effect in terms of the assets getting repriced.”
Suresh Iyer, page 16 of the filed PDF · View the filing
Slowdown in demand specifically within the affordable housing segment
p. 16
“affordable definitely has is now in the mid-single-digit numbers, that growth that we are talking about.”
Suresh Iyer, page 16 of the filed PDF · View the filing
Loss of business to competitors like LIC Housing and Bajaj Finance via balance transfer with top-up loans
p. 12
“The key players who are doing the BT out is LIC Housing and Bajaj.”
Suresh Iyer, page 12 of the filed PDF · View the filing
Elevated prepayment and rundown levels affecting AUM growth
p. 4
“we had a slightly elevated rundown situation. And therefore, we ended up with about INR600-odd crores extra over and above the INR6,000 that we have targeted.”
Suresh Iyer, page 4 of the filed PDF · View the filing
Delay in e-khata processing in rural gram panchayat areas of Karnataka
p. 3
“barring the rural areas forming part of gram panchayats where the e-khata is getting delayed to some extent”
Suresh Iyer, page 3 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.