Can Fin Homes (CANFINHOME) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 disbursements reached INR 2,609 crores, up 29% year-over-year, with outstanding loan book at ₹42,961 crore and 11% growth, driven by positive performance across all zones and segments.

• Net Interest Income rose 18% year-over-year to ₹427 crore, and Profit After Tax increased 20% to ₹268 crore for Q1 FY27.

• Maintained strong asset quality with Gross NPA at 0.87% and Net NPA at 0.42% in Q1 FY27.

• IT and digital transformation initiatives are underway, with pilots in five branches and full rollout expected by Q2 end, aiming to enhance operational efficiency and customer experience.

• Un-audited financial results for Q1 FY27 were approved, showing strong growth in income and profitability compared to the same quarter last year.

Financial highlights

• Disbursements grew 29% year-over-year to INR 2,609 crores; new approvals up 36% to ₹2,795 crore.

• Net Interest Margin (NIM) at 3.81%, above guidance; cost of borrowing reduced to 6.98%.

• Operating profit increased 16% year-over-year to ₹352 crore; ROA at 2.39%, ROE above 17%.

• Cost-to-income ratio at 19.5%; debt-equity ratio improved to 6.18.

• Total income from operations for Q1 FY27 was ₹1,09,632.52 lakhs, with net profit after tax at ₹26,739.88 lakhs.

Outlook and guidance

• Annual AUM growth target maintained at 14%, with Q2 disbursement target of INR 3,000 crores.

• Focus on growth, asset quality, profitability, and liquidity, with continued digital transformation and compliance emphasis.

• Confident in sustaining NIM above 3.8% and credit cost guidance of 10 basis points.

• Final dividend of ₹8 per equity share recommended, subject to shareholder approval.

• No major liquidity concerns; ample bank sanctions and stable funding sources.