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

Executive summary

• Q4 saw a 31% sequential growth in disbursements, with Karnataka rebounding after e-Khata issues and other zones maintaining strong momentum.

• Can Fin Homes Ltd, sponsored by Canara Bank, operates pan-India with 234 branches and a legacy of uninterrupted dividends.

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

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

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

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%.

• NPA ratio reduced to 0.87% at year-end, with Net NPA at 0.46% and 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 targets 20% disbursement growth in FY 2026, with AUM growth expected at 13-15%.

• Spread and NIM guidance maintained at 2.5%+ and 3.5%+ respectively; ROE expected at ~17% and ROA at 2.1-2.2%.

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

• Focus on leveraging technology, expanding sourcing channels, and eco-friendly product offerings.

• Credit cost guidance remains at 15 bps, but actual provisioning is expected to be lower.