Home First India (HOMEFIRST) Q2 25/26 earnings summary

Executive summary

• Assets under management (AUM) grew 26.3% year-over-year and 5.2% quarter-on-quarter to ₹141,781 Mn, with strong distribution expansion and digital adoption; 96% of customers are app-registered and 83% of approvals are digital.

• Profit after tax rose to ₹1,318 Mn, up 43% year-over-year and 10.9% quarter-on-quarter, with ROA at 3.8%.

• Expanded to 163 branches across 143 districts in 13 states, adding 5 new branches and 14 employees in the quarter.

• Morningstar Sustainalytics reaffirmed a low ESG risk category with an improved score of 13.6.

• Board approved reviewed financial results for the quarter and half year ended September 30, 2025, and noted key management changes.

Financial highlights

• Total income for Q2 FY26 was ₹4,790.5 Mn, up 28% year-over-year and 5.2% quarter-on-quarter; net interest income grew 33.8% to ₹1,865.7 Mn.

• Disbursements for Q2 FY26 were ₹12,894 Mn, up 9.6% year-over-year.

• Net interest margin improved to 5.4% from 5.2% in the previous quarter.

• Cost-to-income ratio improved to 32.0%; OpEx to assets at 2.6%.

• Collection efficiency remained robust at 98.2–98.4% during the quarter.

Outlook and guidance

• Management expects to maintain credit costs at 30–40 basis points for the full year, with efforts to pull back delinquencies in the next two quarters.

• AUM growth guidance remains at 25%+ for the year, with disbursement targets being recalibrated based on evolving market conditions.

• Cost of borrowing is expected to fall below 8% by March, supporting stable spreads and expanding NIMs.

• Management remains optimistic for H2 FY26, citing improving macro environment and easing interest rates.