Can Fin Homes (CANFINHOME) Q1 25/26 earnings summary

Executive summary

• Achieved record Q1 disbursement exceeding INR 2,000 crore, a 9% year-over-year growth, with strong performance in North, West, and Tamil Nadu zones; East zone turned positive after being flat last year.

• 38-year-old deposit-taking housing finance company with pan-India presence, strong Canara Bank sponsorship, and focus on home loans to individuals with ethical practices.

• Board approved unaudited Q1 FY26 results, reviewed by statutory auditors and audit committee.

• Delinquency improved, with a reduction of INR 280 crore from March 2025 and lowest percentage in five quarters, though NPA increased by INR 45 crore due to seasonal trends and strategic recognition of sticky accounts.

• Expanded sales team from 39 to 100 and planning 15 new branches in FY26, targeting 300 branches by FY28, focusing on existing geographies.

Financial highlights

• Loan book reached ₹38,773 Cr in Q1FY26, up 9% year-over-year; Net Interest Income at ₹363 Cr (+13% YoY), PAT at ₹223 Cr (+12% YoY), and PBT at ₹278 Cr (+9% YoY).

• Q1 FY26 total income from operations: ₹1,02,040.40 lakhs, up from ₹93,112.90 lakhs YoY; Net profit after tax: ₹22,387.33 lakhs, up from ₹19,964.04 lakhs YoY.

• NIM at 3.64%, RoAA at 2.19%, RoE at 16.93%, and EPS at ₹16.81.

• Cost-to-income ratio at 18.33%, elevated due to one-time salary adjustments and branch expansion, expected to normalize to 18% by year-end.

• Gross NPA at 0.98%, Net NPA at 0.54% with additional management overlay.

Outlook and guidance

• Q2 disbursement guidance at INR 2,500 crore+, with full-year target of INR 10,500 crore.

• NIM and spread guidance at 3.5% and 2.5% respectively; ROA and ROE at 2.2% and 17%.

• Emphasis on technology integration and digital transformation, with major IT project implementation expected in Q3FY26.

• Branch network to reach 249 by FY26 and 300 by FY28, with expansion focused on North and West.

• 100% asset cover maintained on secured NCDs as of June 30, 2025.