Can Fin Homes (CANFINHOME) Q3 25/26 earnings summary

Executive summary

• Q3 disbursements reached INR 2,727 crore, the highest ever for any quarter, marking a 45% year-over-year increase and 7% sequential growth, with the loan book at ₹40,693 crore and a clientele base of 2.89 lakh.

• Net Interest Income for Q3FY26 was ₹421 crore; Profit After Tax stood at ₹265 crore, with EPS at ₹19.89 and Return on Equity at 18.80%.

• AUM growth improved to over 9.5% year-over-year, but was impacted by elevated prepayments and loan closures, reducing potential AUM by about INR 400 crore in Q2 and Q3.

• Delinquency levels improved for the fourth consecutive quarter, with total delinquency dropping below INR 3,750 crore, and notable recovery in previously stressed geographies like Telangana.

• Focus remains on growth, asset quality, profitability, and digital transformation.

Financial highlights

• Net Interest Margin (NIM) for Q3 rose to 4.14% from 4.02% in Q2, with spreads at 2.93% for Q3 and 2.84% for the nine months.

• Disbursement growth for the year is expected to reach 22%-23% year-over-year, with AUM growth projected at 11%-12% due to higher prepayments.

• Operating profit for Q3FY26 was ₹351 crore; Cost to income ratio at 18.53%.

• Gross NPA at 0.92%, Net NPA at 0.49% as of Dec 2025; overall asset quality stable.

• EPS for Q3FY26 was ₹19.89; Return on Equity at 18.80%.

Outlook and guidance

• Q4 disbursements are guided at INR 3,200–3,300 crore, supporting a full-year target of INR 10,500 crore.

• FY 2027 AUM growth is projected at 15%, with disbursements of INR 13,500 crore and prepayments of INR 7,000 crore.

• NIM and spread are expected to stabilize at 3.75% and 2.75%, respectively, even after transitioning most loans to quarterly reset.

• Continued emphasis on technology integration and digital transformation, with major IT projects scheduled for Q4FY26.

• Credit cost is guided at 15 bps, with no significant stress anticipated in any geography or segment.