Can Fin Homes (CANFINHOME) Q4 24/25 earnings summary

Executive summary

• Q4 saw a strong recovery in disbursements, especially in Karnataka, with monthly figures rising from INR 200 crore in January/February to INR 300 crore in March, driving a 31% sequential growth over Q3.

• 37-year-old Can Fin Homes Ltd, sponsored by Canara Bank, focuses on home loans with a pan-India presence of 234 branches and a strong legacy of uninterrupted dividends since inception.

• Emphasis on growth, asset quality, profitability, and digital transformation, with a commitment to ethical practices and strong governance.

• Consistent management support, experienced board and leadership, and robust risk-based evaluation processes.

• Audited financial results for Q4 and FY25 approved, with a final dividend of Rs. 6 per share recommended, subject to shareholder approval.

Financial highlights

• FY25 loan book reached Rs. 38,217 Cr (+9% YoY); PAT at Rs. 857 Cr (+14.18% YoY); NII at Rs. 1,353 Cr (+7.53% YoY).

• Q4FY25 PAT at Rs. 234 Cr (+12% YoY); NII at Rs. 349 Cr; NIM at 3.82%; ROAA at 2.59%; RoE at 18.47%.

• Gross NPA at 0.87%, Net NPA at 0.46% with additional management overlay.

• Cost-to-income ratio improved to 19.36% in Q4FY25 and 17.12% for FY25.

• EPS for FY25 at Rs. 64.37 (vs. Rs. 56.38 YoY).

Outlook and guidance

• Management remains confident of achieving 20% disbursement growth in FY 2026, supported by branch expansion and improved performance in key regions.

• Guidance maintained for spread of 2.5%+, NIM of 3.5%+, ROE of ~17%, and ROA of 2.1%-2.2%.

• Cost-to-income ratio expected to remain around 17% in FY 2026, rising to ~18% in FY 2027 due to IT transformation costs.

• Final dividend of Rs. 6 per share (300% of face value) recommended for FY25, pending shareholder approval.

• Plans to leverage technology for process improvement and customer service, with expansion of sourcing channels and eco-friendly product offerings.