Home First Finance Company India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Home First Finance Company India Ltd filed with BSE on 12 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
Home First Finance reported FY26 assets under management of Rs 15,878 crores, up 24.9% year-on-year, with Q4 disbursements at a record Rs 1,572 crores. Full-year profit after tax grew 41.4% year-on-year to Rs 540 crores, while asset quality metrics such as 1+ DPD and Gross Stage 3 improved sequentially during the quarter. Management discussed plans for branch expansion, co-lending scale-up, and AI adoption across underwriting and servicing functions.
Numbers mentioned
Assets under management: Rs 15,878 crores (as of March 2026)
p. 3
“Our assets under management stood at INR15,878 crores as of March '26, up 24.9% year-on-year and 6.4% sequentially.”
Manoj Viswanathan, page 3 of the filed PDF · View the filing
Q4 disbursement: Rs 1,572 crores (Q4 FY26)
p. 3
“Disbursement in Q4 was the highest ever at INR1,572 crores, up 23.5% year-on-year and 19.3% q-o-q.”
Manoj Viswanathan, page 3 of the filed PDF · View the filing
FY26 disbursement: Rs 5,424 crores (FY26)
p. 3
“For FY'26, the disbursement stood at INR5,424 crores, a growth of 12.9% over FY25.”
Manoj Viswanathan, page 3 of the filed PDF · View the filing
Profit after tax: Rs 540 crores (FY26)
p. 3
“For FY26, PAT stood at INR540 crores, up 41.4% year-on-year.”
Manoj Viswanathan, page 3 of the filed PDF · View the filing
Return on equity: 15.7% (FY26)
p. 3
“Reported return on equity for FY26 was 15.7%.”
Manoj Viswanathan, page 3 of the filed PDF · View the filing
Adjusted ROE: 16.8% (FY26, pre-money basis)
p. 3
“And on a pre-money basis, adjusted ROE stood at 16.8%.”
Manoj Viswanathan, page 3 of the filed PDF · View the filing
Origination yield: 13% (FY26)
p. 3
“Our origination yield continues to be healthy at 13% with an 83% share of individual housing loans.”
Manoj Viswanathan, page 3 of the filed PDF · View the filing
1+ DPD: 4.7% (Q4 FY26)
p. 4
“Our 1+ DPD is at 4.7%, down 60bps sequentially.”
Manoj Viswanathan, page 4 of the filed PDF · View the filing
30+ DPD: 3.2% (Q4 FY26)
p. 4
“30+ DPD improved to 3.2%, down by 50bps sequentially.”
Manoj Viswanathan, page 4 of the filed PDF · View the filing
Gross Stage 3: 1.8% (Q4 FY26)
p. 4
“Gross Stage 3 improved to 1.8%, down by 20bps q-o-q.”
Manoj Viswanathan, page 4 of the filed PDF · View the filing
Total income: Rs 505 crores (Q4 FY26)
p. 5
“Total income for the quarter stood at INR505 crores, up by 21.3% Y-o-Y and 4.4% q-o-q.-on quarter.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Portfolio yield excluding co-lending: 13.2% (Q4 FY26)
p. 5
“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.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Cost of borrowing excluding co-lending: 7.9% (Q4 FY26)
p. 5
“we were able to contract our cost of borrowing, excluding co-lending, by 10 basis points to 7.9%.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Spread excluding co-lending: 5.3% (Q4 FY26)
p. 5
“As a result, our spread, excluding co-lending, remained healthy at 5.3%.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Net interest margin: 5.9% (Q4 FY26)
p. 5
“Net interest margin for Q4 stood at 5.9%, while there was a modest sequential compression of 10bps, NIM remains robust and continues to reflect the strength of our business model.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Net interest margin: 5.7% (FY26)
p. 5
“For FY26, NIM stood around 5.7%.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Cost-to-income ratio: 32% (Q4 FY26)
p. 5
“Cost-to-income for Q4 was 32%, improving 10bps sequentially.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Cost-to-income ratio: 32.5% (FY26)
p. 5
“For FY26, the cost-to-income stood at 32.5%, an improvement of 330bps y-o-y..”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Pre-provision operating profit: Rs 212 crores (Q4 FY26)
p. 6
“Pre-provision operating profit in Q4 stood at INR212 crores, up by 44.9% y-o-y.”
Nutan Gaba Patwari, page 6 of the filed PDF · View the filing
Profit after tax: Rs 149 crores (Q4 FY26)
p. 6
“Profit after tax for Q4 stood at INR149 crores, up by 42.7% y-o-y and 6.6% q-o-q.”
Nutan Gaba Patwari, page 6 of the filed PDF · View the filing
Credit cost: 40bps (Q4 and FY26)
p. 6
“Credit cost for Q4 and the year stood at 40bps.”
Nutan Gaba Patwari, page 6 of the filed PDF · View the filing
Provision coverage ratio: 44.9% (as of March 2026)
p. 6
“As of Mar'26, our total provision coverage ratio stood at 44.9%.”
Nutan Gaba Patwari, page 6 of the filed PDF · View the filing
Co-lending book: Rs 593 crores, 3.7% of AUM (as of March 2026)
p. 6
“The co-lending book grew to INR593 crores and now represents 3.7% of AUM.”
Nutan Gaba Patwari, page 6 of the filed PDF · View the filing
Capital to risk-weighted assets ratio: 44.1%, Tier I 43.8% (as of March 2026)
p. 6
“As of Mar'26, our Capital to risk-weighted assets ratio (CRAR) stood at 44.1% with Tier I at 43.8%.”
Nutan Gaba Patwari, page 6 of the filed PDF · View the filing
Net worth: Rs 4,357 crores (as of March 2026)
p. 6
“Our net worth stood at INR4,357 crores, and the book value per share is INR418 as of Mar'26.”
Nutan Gaba Patwari, page 6 of the filed PDF · View the filing
Total write-off: Rs 36 crores (FY26)
p. 20
“Total write-off has been – this year has been about INR36 crores.”
Manoj Viswanathan, page 20 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.
AUM growth — around 25% year-on-year · FY27
stated firmly by Manoj Viswanathan
p. 4
“Based on where we are today, we are positioned to deliver around 25% year-on-year AUM growth.”
Manoj Viswanathan, page 4 of the filed PDF · View the filing
Spread — 5% to 5.25%
stated firmly by Nutan Gaba Patwari
p. 5
“Our aim remains to deliver a spread at a portfolio level in our guided range of 5% to 5.25%.”
Nutan Gaba Patwari, page 5 of the filed PDF · View the filing
Operating cost to assets — 2.6% to 2.7%
stated conditionally by Nutan Gaba Patwari
p. 5
“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, page 5 of the filed PDF · View the filing
Credit cost — 30bps to 40bps · FY27
stated firmly by Manoj Viswanathan
p. 14
“Guidance on the credit cost is the same. 30bps to 40bps.”
Manoj Viswanathan, page 14 of the filed PDF · View the filing
Cost of borrowing — around Q4 levels · Q1 FY27
stated conditionally by Nutan Gaba Patwari
p. 10
“In fact, I would say we should be able to maintain our cost of borrowing in Q1'27 at around the levels of last quarter.”
Nutan Gaba Patwari, page 10 of the filed PDF · View the filing
Branch additions — 30 to 40 branches · per year
stated firmly by Manoj Viswanathan
p. 11
“Our branch strategy is to add about 30 to 40 branches every year.”
Manoj Viswanathan, page 11 of the filed PDF · View the filing
PLR — near term
stated conditionally by Nutan Gaba Patwari
p. 16
“Not at the moment. We have already done with the 10 basis points in January. So we will want to stay put for now.”
Nutan Gaba Patwari, page 16 of the filed PDF · View the filing
AUM growth — 25% growth trajectory · next couple of years
stated as an aspiration by Manoj Viswanathan
p. 8
“So that's what gives us the confidence that this year, definitely 25% AUM growth we can deliver. And if everything goes well, we should be able to continue that trend over the next couple of years as well.”
Manoj Viswanathan, page 8 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 elevated delinquencies, tariff impact, and internal staffing issues combined in H1, and both external and internal factors improved through the year.
Answered by Manoj Viswanathan
Asked by Abhijit Tibrewal: Was the first-half weakness demand-led and how is credit trending now?
p. 7
“So, looking at the first half, so there were two or three things that were happening simultaneously.”
Manoj Viswanathan, page 7 of the filed PDF · View the filing
Management said Tamil Nadu share was weak and dropped further due to muted growth, while Karnataka saw steady growth apart from a temporary e-khata related blip.
Answered by Manoj Viswanathan
Asked by Prashant Kothari: How did market share move in Karnataka and Tamil Nadu in FY26?
p. 8
“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.”
Manoj Viswanathan, page 8 of the filed PDF · View the filing
CFO said the company will wait for actual repo/MCLR movements before deciding on a hike and expects cost of borrowing broadly stable next quarter.
Answered by Nutan Gaba Patwari
Asked by Shreepal Doshi: Would rate hikes lead to a PLR change?
p. 10
“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.”
Nutan Gaba Patwari, page 10 of the filed PDF · View the filing
Management expects the issue to be resolved by end of May with June being a normal month.
Answered by Manoj Viswanathan
Asked by Kunal Shah: When will co-lending volumes normalize after the regulatory issue?
p. 12
“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.”
Manoj Viswanathan, page 12 of the filed PDF · View the filing
Management said April experience was better than the prior two years and no issues were observed in Karnataka.
Answered by Manoj Viswanathan
Asked by Kushan Parikh: How is asset quality trending in April and any Karnataka-specific collection issues?
p. 14
“So asset quality-wise, as I mentioned April experience has been good and it's been better than the last 2 years.”
Manoj Viswanathan, page 14 of the filed PDF · View the filing
Management pointed to rebuilt distribution teams and strong exit momentum from Q4 as reasons for confidence.
Answered by Manoj Viswanathan
Asked by Nischint Chawathe: What gives confidence in sustaining 25% AUM growth versus prior higher rates?
p. 17
“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.”
Manoj Viswanathan, page 17 of the filed PDF · View the filing
CFO clarified the customer segment remains the same informal-income affordable housing customer, not a prime borrower, despite rising ticket sizes.
Answered by Nutan Gaba Patwari
Asked by Nischint Chawathe: Is the company effectively moving toward a smaller prime book via larger ticket sizes?
p. 18
“No, I think I want to come in here and address it, it's not prime. The customer segment is the same.”
Nutan Gaba Patwari, page 18 of the filed PDF · View the filing
Management said current guidance is 25% and it is difficult to say if 30% is achievable now.
Answered by Manoj Viswanathan
Asked by Ravi Naredi: Can AUM growth be sustained at the 30% CAGR seen between FY23 and FY26?
p. 20
“At this point, difficult to say, sir.”
Manoj Viswanathan, page 20 of the filed PDF · View the filing
Risks flagged
Ongoing conflict in the Middle East as a potential demand/collection risk, though not yet observed
p. 4
“We have not yet observed any significant impact from the ongoing war in the Middle East.”
Manoj Viswanathan, page 4 of the filed PDF · View the filing
Possible future systemic interest rate hikes affecting cost of borrowing
p. 10
“we will wait for the repo hike, if at all, they were to happen in the later part of the year.”
Nutan Gaba Patwari, page 10 of the filed PDF · View the filing
Uncertainty in pricing decisions for the rest of the year depending on market rate movements
p. 14
“For the rest of the year, we will have to see how the actual pricing moves in the market.”
Nutan Gaba Patwari, page 14 of the filed PDF · View the filing
Internal staffing gaps and attrition that had earlier weakened performance
p. 7
“Some of the locations were not staffed properly. There was some attrition and so on.”
Manoj Viswanathan, page 7 of the filed PDF · View the filing
Uncertain impact of AI-led origination outcomes, difficult to predict
p. 21
“It is little more difficult to predict what outcomes it will have on the origination side.”
Manoj Viswanathan, page 21 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.