Home First India (HOMEFIRST) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 delivered strong business momentum, robust profitability, and stable asset quality, with disbursements up 10.5% YoY to ₹13,184 million and AUM up 24.9% YoY to ₹149,249 million; technology adoption and network expansion supported growth.

• Profit after tax rose 44% YoY to ₹1,402 million, with net total income up 34.8% YoY; ROA at 4% and ROE at 13.7%.

• Asset quality remained healthy: 1+ DPD at 5.3% (down 20 bps QoQ), 30+ DPD at 3.7% (flat QoQ), and GNPA at 2% (up 10 bps QoQ).

• Excluding a one-time gratuity provision, PAT growth was 46.6% YoY and 8.3% QoQ, with ROA at 4.1% and ROE at 13.9%.

• Management confirmed leadership stability and reappointed the Chief Compliance Officer.

Financial highlights

• Total income for Q3 FY26 was ₹4,836.75 million, up from ₹4,059.47 million in Q3 FY25; net interest income for Q3FY26 was ₹2,122 million, up 49% YoY.

• Disbursements for Q3FY26 were ₹13,184 million, up 10.5% YoY and 2.2% QoQ.

• Cost-to-income ratio at 32%, operating cost to asset at 2.7%.

• Collection efficiency remained high at 97–98% throughout the quarter.

• Operating expenses increased due to a one-time gratuity provision of ₹33 million.

Outlook and guidance

• Guidance for 25% AUM growth for FY26 and FY27, with green shoots visible in key markets and renewed confidence in disbursal numbers.

• Six to eight new branches in the pipeline, with at least six to be added in Q4; 25-30 branches planned for FY27.

• Credit cost guidance maintained at 30–40 bps, with disciplined risk management as scale increases.

• Long-term vision to reach ₹350,000 million AUM by 2030, implying 20%-23% annual growth.

• Company continues to monitor regulatory changes, including new labour codes, for future impact.