Home First India (HOMEFIRST) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2 FY25 performance with AUM at ₹112,294 Mn (up 34.2% YoY), disbursements at ₹11,768 Mn, and PAT up 24.1% to ₹922 Mn, with ROE at 16.5%.

• Expanded to 142 branches and 351 touchpoints across 13 states/UTs, with employee strength rising to 1,642.

• Technology adoption advanced: 95% customer app registration, 49% Account Aggregator adoption among new approvals, and 89% of service requests raised digitally.

• Board approved reviewed financials for Q2 and H1 FY25, with unmodified auditor review, and approved NCD issuance up to ₹700 crore.

• Re-appointment of Chief Risk Officer for three years and allotment of 655,107 ESOP shares in H1 FY25.

Financial highlights

• Total income for Q2 FY25 was ₹3,742 Mn, up 34.6% YoY; net interest income at ₹1,395 Mn, and PAT at ₹919.07 Mn.

• Net interest margin at 5.2%; spreads (excluding co-lending) at 5.3% after August repricing.

• Operating expenses to assets at 2.7%; cost-to-income ratio at 36.7%; employee cost increased due to ESOP grants.

• Fee and commission income rose, driven by new insurance agency partnerships, contributing ₹75–80 Mn monthly.

• Cash and cash equivalents increased to ₹7,480.86 Mn as of September 30, 2024.

Outlook and guidance

• Targeting 30% AUM growth annually, with disbursement run rates planned at ₹4,000 Mn/month this year, ₹5,000 Mn next year, and ₹6,000 Mn the year after.

• Credit cost guidance remains at 20–40 bps.

• Plans to open 25–30 branches per year and continue employee base expansion.

• Focus on affordable housing, leveraging technology, and benefiting from government schemes like PMAY-U 2.0.