Repco Home Finance Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Repco Home Finance Ltd filed with BSE on 26 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
Repco Home Finance reported its highest-ever quarterly disbursement of Rs.1186 crore in Q4 FY2026 and highest-ever annual disbursement of Rs.4148 crore for FY2026, up 26% year-on-year, while loan book grew about 9.6% to Rs.15,880 crore. Gross NPA reduced to 2.55% from 3.26% a year earlier, and stage 2 assets fell to about 7% of the book from 9.5%. Management cited one-off items including a change in interest calculation methodology, Labor Code implementation costs, silver jubilee expenses, and higher CSR spend that together reduced profit by approximately Rs.46 crore, with full-year profit at Rs.453 crore versus Rs.449 crore in the prior year.
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Numbers mentioned
Disbursement: Rs.1186 Crores (Q4 FY2026)
p. 3
“During the quarter ended March 2026, we have disbursed Rs.1186 Crores, of course, this is the highest disbursement in our Company.”
T. Karunakaran, page 3 of the filed PDF · View the filing
Disbursement: Rs.4148 Crores (FY2026)
p. 3
“In the whole year, we disbursed Rs.4148 Crores again this is the highest disbursement.”
T. Karunakaran, page 3 of the filed PDF · View the filing
Loan book: Rs.15,880 Crores (FY2026)
p. 4
“Total loan book at end of the financial year stood at Rs.15,880 Crores as against Rs.14,496 Crores in the last financial year.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Yield on advances: 11.9% (March 2026)
p. 4
“With respect to yield, overall yield as end of the March stood at 11.9% as against 12% in December 2025 and 12.07% in March 2025.”
T. Karunakaran, page 4 of the filed PDF · View the filing
GNPA: 2.55% (FY2026)
p. 4
“At the end of 2025 our GNPA was 3.26%, which we brought it down to 2.55% at the end of March 2026.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Stage 2 assets: Rs.1115 Crores (FY2026)
p. 4
“At the end of the financial year 2026, our stage 2 assets stood at Rs.1115 Crores as against about Rs.1410 Crores in the corresponding period of the previous year.”
T. Karunakaran, page 4 of the filed PDF · View the filing
Total borrowings: Rs.12,215 Crores (March 2026)
p. 5
“At the end of March, our overall borrowings stood at Rs.12,215 Crores out of total borrowings, almost 6.2% of the funding is coming from National Housing Bank and 85% of the funding is coming from banking system and about 5.39% is coming from Repco Bank.”
T. Karunakaran, page 5 of the filed PDF · View the filing
Cost of funds: 8.56% (FY2026)
p. 5
“Our cost of funds at the end of the year stood at 8.56%.”
T. Karunakaran, page 5 of the filed PDF · View the filing
Q4 profit: Rs.129.11 Crores (Q4 FY2026)
p. 5
“Our Q4 profit stood at Rs.129.11 Crores as against Rs.108.77 Crores in December quarter.”
T. Karunakaran, page 5 of the filed PDF · View the filing
Full-year profit: Rs.453 Crores (FY2026)
p. 6
“Our overall year profit stood at Rs.453 Crores as against Rs.449 crores in the last financial year.”
T. Karunakaran, page 6 of the filed PDF · View the filing
NIM: 5.38% (FY2026)
p. 6
“Ratios wise, our NIM stood at 5.38% as against 5.15%.”
T. Karunakaran, page 6 of the filed PDF · View the filing
ROA: 3% (FY2026)
p. 6
“Our ROA stood at 3%.”
T. Karunakaran, page 6 of the filed PDF · View the filing
Cost-to-income ratio: 28.71% (FY2026)
p. 6
“cost-to-income ratios stood at 28.71.”
T. Karunakaran, page 6 of the filed PDF · View the filing
Provision coverage ratio: 55% (FY2026)
p. 5
“Almost we are maintaining a provision coverage ratio of 55%.”
T. Karunakaran, page 5 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 — Rs.18,000 Crores · FY2027
stated firmly by T. Karunakaran
p. 6
“So, my yearend target for the current financial year is about Rs.18,000 Crores.”
T. Karunakaran, page 6 of the filed PDF · View the filing
Disbursement — Rs.5000 Crores · FY2027
stated firmly by T. Karunakaran
p. 6
“Current year, the target we want to achieve a disbursement of approximately Rs.5000 Crores disbursement”
T. Karunakaran, page 6 of the filed PDF · View the filing
AUM — Rs.25,000 Crores · two years
stated as an aspiration by T. Karunakaran
p. 6
“Two years down the line, yes, we will be in a position to achieve Rs.25,000 Crores AUM.”
T. Karunakaran, page 6 of the filed PDF · View the filing
Inorganic loan book purchase — Rs.25 Crores to Rs.30 Crores · FY2027
stated firmly by T. Karunakaran
p. 7
“We may do in this financial year about Rs.25 Crores to Rs.30 Crores, not more than that.”
T. Karunakaran, page 7 of the filed PDF · View the filing
CSR spend — 2% to 3%
stated as an aspiration by T. Karunakaran
p. 8
“My idea is about 2% to 3%, not more than that.”
T. Karunakaran, page 8 of the filed PDF · View the filing
Stage 2 assets — below 5% · before the end of this financial year
stated conditionally by P. K. Vaidyanathan
p. 14
“So going forward, we can reduce the stage 2 accounts below 5% before the end of this financial year.”
P. K. Vaidyanathan, page 14 of the filed PDF · View the filing
Spread — 3.2% to 3.25% · current financial year
stated as an aspiration by T. Karunakaran
p. 16
“For current financial year, we would like to maintain a spread of in and around 3.2%to 3.25%.”
T. Karunakaran, page 16 of the filed PDF · View the filing
Cost of funds — 10 to 15-bps
stated conditionally by Shanthi Srikanth
p. 16
“We expect it might go down 10 to 15-bps around.”
Shanthi Srikanth, page 16 of the filed PDF · View the filing
Quarterly disbursement — more than Rs.1000 Crores · current quarter
stated firmly by T. Karunakaran
p. 11
“We want to maintain the momentum, we want to maintain the trend of doing more than Rs.1000 Crores in a quarter.”
T. Karunakaran, page 11 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 the target will now be achieved two years down the line, effectively a delay of about a year.
Answered by T. Karunakaran
Asked by Amit Mehendale: Are we still on track for the Rs.25,000 crore loan book target by FY2028?
p. 6
“Two years down the line, yes, we will be in a position to achieve Rs.25,000 Crores AUM.”
T. Karunakaran, page 6 of the filed PDF · View the filing
Management attributed the gap to a vintage book with natural maturity-driven runoff and prepayment behavior of non-salaried customers.
Answered by M. Raja
Asked by Amit Mehendale: Why has loan book growth lagged disbursement growth despite BT Out being a persistent issue?
p. 7
“I will have to expect and accept a rundown of my book because of maturity alone.”
M. Raja, page 7 of the filed PDF · View the filing
Management broke down the Rs.2670 crore principal rundown into scheduled repayment, partial prepayment, full closures, and BT Out.
Answered by T. Karunakaran
Asked by Shubhranshu Mishra: What is the split between BT Out, prepayment, and full repayment for the year?
p. 9
“Prepayment that means partial pre-payment is roughly about Rs.256 Crores. Full payment is about Rs.1675 Crores.”
T. Karunakaran, page 9 of the filed PDF · View the filing
Management said self-employed customer profiles lead to frequent bullet and part-prepayments even on newer loans.
Answered by M. Raja
Asked by Vikas Kasturi: Why is there rundown even in the new (post-2022) loan book, not just the legacy book?
p. 12
“Though there are no major pre-closures in the recent book, but there are a lot of part pre-payments and that is what is being observed by you as 25%.”
M. Raja, page 12 of the filed PDF · View the filing
Management acknowledged the point but said cost-to-income concerns have limited hiring so far, though they are considering it.
Answered by M. Raja
Asked by Pavan Kumar: Why not add more salespeople per branch given peers operate with more staff and higher disbursement productivity?
p. 14
“Yes, we can add more salespeople, as you said that is one of the approaches, but again, we are very, very conscious about our cost to income and overheads.”
M. Raja, page 14 of the filed PDF · View the filing
Management targeted reducing stage 2 below 5%, aided by a dedicated collections vertical.
Answered by P. K. Vaidyanathan
Asked by Pavan Kumar: Can stage 2 assets be reduced to around 3-4% in FY2027?
p. 14
“Actually, we plan to reduce below 5% because last year, we have reduced around 2.7%.”
P. K. Vaidyanathan, page 14 of the filed PDF · View the filing
Management said they intend to continue the higher payout trend rather than treat it as one-off.
Answered by T. Karunakaran
Asked by Saurabh Dhole: Will the higher dividend payout continue or was it a one-time silver jubilee event?
p. 15
“Continue this, we want to maintain this trend. It is not a one-off thing like what I discussed in my concall.”
T. Karunakaran, page 15 of the filed PDF · View the filing
Management explained a risk-based pricing model and noted spreads are being sacrificed for growth in a competitive environment.
Answered by T. Karunakaran
Asked by Prithviraj Patil: What is the pricing strategy and outlook for cost of funds and yields?
p. 16
“If we want to grow, it is not possible to maintain good spread, as they both do not come together.”
T. Karunakaran, page 16 of the filed PDF · View the filing
Management estimated a modest reduction from the new NHB facility.
Answered by T. Karunakaran
Asked by Saurabh Dhole: By how much will the NHB refinance sanction reduce cost of funds?
p. 16
“My guess is we will get a cost benefit of in and around 10-basis to 15-basis points immediately.”
T. Karunakaran, page 16 of the filed PDF · View the filing
Management pointed to team realignment issues now resolved and the Karnataka e-Khata issue easing, with growth expected in FY2027.
Answered by M. Raja
Asked by Rajiv Mehta: Why have Karnataka and Andhra Pradesh growth remained weak, and when will these markets contribute more?
p. 17
“So this year, I should see growth from there and on the Karnataka front, the e-Khata issue is now fizzling down.”
M. Raja, page 17 of the filed PDF · View the filing
Management said under Ind AS accounting, NPA interest is already recognized net of provision, so recoveries do not create a revenue spike.
Answered by T. Karunakaran
Asked by Rajiv Mehta: Were there one-off interest recoveries booked from the quarter's NPA resolutions?
p. 18
“Because of recovering NPA, my revenue will not go up substantially.”
T. Karunakaran, page 18 of the filed PDF · View the filing
Risks flagged
High prepayment and BT Out activity from non-salaried, self-employed customers constrains net loan book growth despite strong disbursements.
p. 7
“The habit of non-salaried class customer, business class people is, as and when they are having a surplus cash flows in the business they will come to us prepay and close the loan.”
T. Karunakaran, page 7 of the filed PDF · View the filing
Vintage of the 25-year-old loan book leads to natural runoff as loans mature.
p. 7
“I have quite a vintaged book. So, as you are aware in the market, my mortgage loan gate-to-gate is not more than seven to eight years.”
M. Raja, page 7 of the filed PDF · View the filing
Competitive pressure from public sector banks taking over vintage loans via balance transfer.
p. 8
“the public sector banks are now getting aggressive and they are more confident on taking over a vintage loan that is where we are bleeding”
M. Raja, page 8 of the filed PDF · View the filing
Maintaining spread is difficult while pursuing growth, requiring rate reductions to retain customers.
p. 16
“If we want to grow, it is not possible to maintain good spread, as they both do not come together.”
T. Karunakaran, page 16 of the filed PDF · View the filing
Bank borrowing costs are unlikely to fall further given reliance on MCLR-linked public sector bank loans.
p. 16
“Public sector bank majority, the MCLR-linked loans, so much of a reduction might not happen from that side, provided the repo gets changed and they may also increase.”
Shanthi Srikanth, page 16 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.