Repco Home Finance Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Repco Home Finance Ltd filed with BSE on 17 Aug 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
Repco Home Finance reported Q1 FY2027 disbursements of Rs.843 Crores and AUM of Rs.15,990 Crores, up 8.9% year-on-year, with management attributing softer June-quarter disbursements to branch head transfers and promotions that were later settled. Net profit rose to Rs.114 Crores from Rs.108 Crores a year earlier, while GNPA stood at Rs.427 Crores or 2.7%, up sequentially from 2.6% but improved from a year ago. Management reiterated its full-year guidance of Rs.5,000 Crores disbursements, 13-14% AUM growth, and a reduction in NPA by Rs.40 Crores for FY2027.
Numbers mentioned
Sanctions: Rs.938 Crores (Q1 FY2027)
p. 3
“Our sanctions stood at Rs.938 Crores as against Rs.907 Crores in FY2026”
T. Karunakaran, page 3 of the filed PDF · View the filing
Disbursements: Rs.843 Crores (Q1 FY2027)
p. 3
“disbursements at Rs.843 Crores as compared to Rs.829 Crores in Q1 FY2026”
T. Karunakaran, page 3 of the filed PDF · View the filing
AUM: Rs.15,990 Crores (as of June 30, 2026)
p. 3
“AUM stands at Rs.15,990 Crores as end of June 30, 2026”
T. Karunakaran, page 3 of the filed PDF · View the filing
AUM year-on-year growth: 8.9% (Q1 FY2027)
p. 3
“We have seen 8.9% year-on-year growth in the AUM.”
T. Karunakaran, page 3 of the filed PDF · View the filing
GNPA: Rs.427 Crores, 2.7% (as of June 30, 2026)
p. 4
“As end of the June, our GNPA in absolute terms, stood at Rs.427 Crores with the GNPA ratio of 2.7% compared to Rs.405 Crores and 2.6% in the previous quarter of the same period.”
T. Karunakaran, page 4 of the filed PDF · View the filing
ECL provision: Rs.352 Crores (as of June 30, 2026)
p. 4
“the cumulative ECL provision, as on June 30, 2026, stood at Rs.352 Crores.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Provision Coverage Ratio: 54% (as of June 30, 2026)
p. 4
“Our PCR that means stage three provision to stage three gross assets is about 54%.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Stage two assets: 7.2% (as of June 30, 2026)
p. 4
“our stage two numbers are at 7.2%, broadly stable compared with 7% in the previous quarter and showing a significant improvement from 9.7% a year ago.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Cost of funds: 8.3% (Q1 FY2027)
p. 4
“the cost of funds of the Company stood at 8.3%.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Net interest income: Rs.216 Crores (Q1 FY2027)
p. 4
“our net interest income increased to Rs.216 Crores as against Rs.207 Crores in last June.”
T. Karunakaran, page 4 of the filed PDF · View the filing
NIM: 5.4% (Q1 FY2027)
p. 4
“Our NIM for current quarter stood at 5.4.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Spread: 3.4% (quarter ended June 2026)
p. 4
“We are able to maintain a 3.4% spread for quarter ended June 2026.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Net profit: Rs.114 Crores (Q1 FY2027)
p. 4
“Our net profit stood at Rs.114 Crores as against Rs.108 Crores in the previous year.”
T. Karunakaran, page 4 of the filed PDF · View the filing
ROE and ROA: 12.7% and 2.9% (Q1 FY2027)
p. 4
“Our ROE and ROA stood at 12.7% and 2.9% respectively.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Cost-to-income ratio: about 26% (Q1 FY2027)
p. 4
“Our cost-to-income ratio stood at about 26%.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Credit cost: 0.2% (as of June 2026)
p. 4
“As end of June, our credit cost stood at 0.2%.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Branch count: 242 branches (as of Q1 FY2027)
p. 4
“Our branch count stood at 242 branches.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Return on assets: 11.75% (as of June 2026)
p. 11
“my return on assets stood at about 11.75% and cost of funds is about 8.31% and we are maintaining a spread of 3.44%.”
T. Karunakaran, page 11 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 — Rs.5000 Crores · FY2027
stated firmly by T. Karunakaran
p. 5
“I stick on a guidance of what I have given in my last concall that is Rs.5000 Crores disbursements and 13% to 14% growth in the AUM and reducing NPA by Rs.40 Crores.”
T. Karunakaran, page 5 of the filed PDF · View the filing
AUM growth — 13% to 14% · FY2027
stated firmly by T. Karunakaran
p. 5
“13% to 14% growth in the AUM and reducing NPA by Rs.40 Crores. This is the guidance what I have given in last con call.”
T. Karunakaran, page 5 of the filed PDF · View the filing
Disbursements — Rs.1,200 Crores to Rs.1,250 Crores · current quarter (Q2 FY2027)
stated firmly by T. Karunakaran
p. 5
“For current quarter, we are targeting Rs.1,200 Crores to Rs.1,250 Crores disbursements”
T. Karunakaran, page 5 of the filed PDF · View the filing
GNPA reduction — around Rs.405 Crores · current quarter (Q2 FY2027)
stated firmly by T. Karunakaran
p. 5
“we set a target to bring down June NPA to last March NPA level. That means our June NPA was about close to Rs.427 Crores. This number we want to bring it down to around Rs.405 Crores.”
T. Karunakaran, page 5 of the filed PDF · View the filing
Spread — 10 to 12 basis points, maximum of 10 basis points · next coming quarter
stated conditionally by T. Karunakaran
p. 12
“my spread may, going forward, may come down by 10 to 12, maximum of 10 basis points in next coming quarter.”
T. Karunakaran, page 12 of the filed PDF · View the filing
NPA ratio — less than 2% · by March 2027
stated as an aspiration by Mr. P. K. Vaidyanathan
p. 11
“we can easily achieve our target of less than 2% NPA by the end of March 2027.”
Mr. P. K. Vaidyanathan, page 11 of the filed PDF · View the filing
GNPA reduction — around Rs.400 Crores · by September end
stated firmly by T. Karunakaran
p. 11
“by September end, we want to bring down NPA level of Rs.425 Crores as end of June to around Rs.400 Crores.”
T. Karunakaran, page 11 of the filed PDF · View the filing
New branches — 12 to 13 branches · current financial year
stated firmly by T. Karunakaran
p. 4
“For current financial year, we want to open another 12 to 13 branches and many of the branches will be in places like AP, Telangana and Karnataka and West side of our country.”
T. Karunakaran, page 4 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 explained pricing reflects cost of funds and customer risk profile, and said there is no current plan to diversify given the HFC license restricts them to housing/mortgage loans
Answered by T. Karunakaran
Asked by Gurumurthy T: Whether Repco charges higher interest rates than banks and whether it plans to diversify beyond housing finance
p. 7
“Right now we do not have any idea. We are expert and we are in the field for 25 years. We know only housing finance business right now. We do not have expert and expertise in other business.”
T. Karunakaran, page 7 of the filed PDF · View the filing
Management confirmed the June month number, part of Q1, includes the cyclical carry-forward effect of about Rs.35-40 Crores
Answered by M. Raja
Asked by Prithviraj Patel: Whether Q1 disbursements were impacted by the month-end cheque carry-forward issue
p. 8
“My June month number, which is part of the Q1, my June month number would have that operation, Sir. Yes.”
M. Raja, page 8 of the filed PDF · View the filing
Management said June and July disbursements were on track and confident of achieving quarterly and annual targets
Answered by M. Raja
Asked by Rajiv Mehta: Whether growth momentum has returned to normal in June and July, and monthly disbursement run rate in August
p. 9
“my numbers are in track and for the year, yes, we are on track for Rs.5,000 Crores.”
M. Raja, page 9 of the filed PDF · View the filing
Management confirmed a spike in BT outs in the June quarter and said they are offering concessions and new incentive schemes to retain good customers
Answered by T. Karunakaran
Asked by Rajiv Mehta: Whether the elevated book runoff reflects higher balance transfer (BT) outs and what steps are being taken to retain customers
p. 10
“We have seen a spike in BT out in the June quarter compared with the March. We decided to retain the good customer, those who are having a good track record of 24 months and a good source of income and good LTV and having a CIBIL score we decided to reduce and offer some good concession to retain the customer to avoid BT outs.”
T. Karunakaran, page 10 of the filed PDF · View the filing
Management attributed the marginal GNPA increase to disruption from transfers and promotions, expected to normalize by Q2
Answered by Mr. P. K. Vaidyanathan
Asked by Sanjana Sivaram: Whether the asset quality deterioration in stage two and stage three was business as usual or geography-specific
p. 10
“this marginal increase in the gross NPA is only because of the slight disturbance due to transfers and promotions, but they were settled in June itself.”
Mr. P. K. Vaidyanathan, page 10 of the filed PDF · View the filing
Management said spread may decline by up to 10-12 basis points due to BT-out pressure and aggressive disbursement push, before stabilizing
Answered by T. Karunakaran
Asked by Sanjana Sivaram: How much spread compression is expected this year and its effect on ROA
p. 12
“my spread may, going forward, may come down by 10 to 12, maximum of 10 basis points in next coming quarter.”
T. Karunakaran, page 12 of the filed PDF · View the filing
Management described IT upgrades, API integrations, and verticalization of sales, recovery and SARFAESI functions as structural changes supporting growth
Answered by T. Karunakaran
Asked by Pulavarthi Kiran: Update on the Company's technology and organizational transformation journey
p. 12
“the biggest structural changes what we have done is verticalization.”
T. Karunakaran, page 12 of the filed PDF · View the filing
Management said Q1 is seasonally slow due to April-May transfers and promotions but disbursements picked up in June, July and August
Answered by M. Raja
Asked by Nidhesh Jain: Why Q1 disbursement was flat year-on-year despite the FY2027 target
p. 14
“Q1, by our DNA, by our practice has always been slow for us because we will have all promotions and transfers in April and May.”
M. Raja, page 14 of the filed PDF · View the filing
Management confirmed they recognize disbursement and interest income only after the cheque is encashed, and have followed this practice for three to four quarters
Answered by M. Raja
Asked by Abhijit Tibrewal: Whether Repco has moved to an encashment basis of accounting for disbursements and AUM, as other HFCs have done
p. 15
“we account for interest income as well as we show it as a disbursement or as part of the loan book only after the cheque gets encashed.”
M. Raja, page 15 of the filed PDF · View the filing
Risks flagged
Disruption to disbursements from annual branch head transfers and staff promotions in April and May
p. 3
“This year, this process affected our disbursement in June quarter.”
T. Karunakaran, page 3 of the filed PDF · View the filing
Elevated balance transfer (BT) outs due to competitive targeting as the company becomes more aggressive in the market
p. 10
“when I am being aggressive in the market with my marketing activities, I become visible to all my competitors and they start targeting me.”
M. Raja, page 10 of the filed PDF · View the filing
Spread compression from sacrificing yield to retain customers and support aggressive disbursement growth
p. 10
“For aggressive disbursements and controlling BT out, I need to sacrifice some portion on spread.”
T. Karunakaran, page 10 of the filed PDF · View the filing
Recoveries in stage two and stage three accounts are insufficient to upgrade them to a standard asset category
p. 11
“recoveries are happening in stage 2 accounts even along with the penal interest and other charges being collected but the amount what we have collected from the borrower is not sufficient to upgrade to next category of asset.”
T. Karunakaran, page 11 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.