Home First India (HOMEFIRST) Q3 24/25 earnings summary

Executive summary

• Achieved AUM growth of 32.6% year-over-year to ₹119,494 Mn, with profit after tax rising 24% YoY to ₹974 Mn and ROE at 16.6%, supported by stable asset quality and robust affordable housing focus.

• Expanded distribution to 359 touchpoints across 13 states/UTs, with 149 branches and employee strength at 1,704 as of Dec'24.

• Board approved equity capital raise of up to ₹1,250 crore via QIP or other modes to support growth and AUM target of ₹20,000 crore by March 2027.

• S&P Global ESG score improved from 34 to 45 YoY; Morningstar Sustainalytics ESG Risk Rating at 16.2 (Low Risk).

• Board approved elevation of Chief Business Officer to Deputy CEO, expanding strategic responsibilities.

Financial highlights

• Q3 FY25 profit after tax at ₹973.83 million, up 24% YoY; total income for Q3 FY25 was ₹4,074.50 million, up from ₹2,963.07 million in Q3 FY24.

• Disbursements for Q3 FY25 were ₹11,928 Mn, up 18.4% YoY; net interest margin at 4.9%, compressed by 24 bps QoQ due to higher borrowing costs.

• Operating cost to assets at 2.6%, marginally lower than previous quarters; cost-to-income ratio at 35.2%.

• Credit cost for Q3 at 30 bps; 9M FY25 credit cost at 26 bps, lower than 38 bps in 9M FY24.

• Net worth stood at ₹24,082 Mn as of Dec'24; book value per share at ₹269.

Outlook and guidance

• Targeting AUM of ₹20,000 crore by March 2027, implying 27%-30% CAGR over next 2-3 years.

• Disbursement growth planned at 19%-20% to support 30%+ AUM growth.

• Co-lending expected to contribute around 10% of disbursements in the medium term.

• Conservative credit cost guidance maintained at 30-40 bps.

• QIP proceeds intended to fund ongoing growth and expansion of the loan portfolio and asset base.