Home First Finance Company reported disbursements of ₹1,630 crore in Q1 FY27, reflecting a 4% sequential growth. The company’s focus on affordable housing segments helped maintain stable asset yields despite sector-wide competition. Investors may track whether the company sustains this momentum in credit demand and maintains its asset quality in the coming quarters.
Home First Finance Company (HomeFirst) recorded disbursements of ₹1,630 crore for the first quarter of the 2027 fiscal year. This growth of 4% over the previous quarter comes despite the seasonal slowdown often seen in the initial months of the financial year. The company’s performance highlights its ability to manage credit growth in the competitive affordable housing finance market.
Segment Strategy and Asset Yields
A key driver of the company’s recent performance is its targeted approach toward the Economically Weaker Sections (EWS) and Low-Income Group (LIG) segments. These segments now account for 58% of the company's total assets under management. By focusing on these specific borrowers, the company has managed to keep its asset yield steady at 13.1%. Additionally, the 'buy-to-transfer' rate, which measures how many customers move their loans to other lenders, dropped to 4.5%. This decline suggests that fewer customers are switching lenders, which often points to stable customer retention.
Asset Quality and Delinquency Trends
Maintaining stable asset quality is essential for finance companies, especially when interest rates or competitive pressures fluctuate. In the first quarter of 2027, the company reported its gross non-performing loans at 1.8%. Other indicators of asset quality, such as the delinquency rates for loans overdue by one day or more (4.7%) and thirty days or more (3.2%), remained stable. This indicates that despite the seasonal nature of the quarter, the company’s ability to collect payments from its borrower base has not seen a major disruption.
Sector and Competitive Environment
The affordable housing finance sector in India remains highly competitive, with several non-banking financial companies and banks vying for market share. Higher competition often leads to pressure on interest margins as lenders try to attract customers. For investors, the sustainability of the 5.2% spread—the difference between the interest earned on loans and the interest paid on borrowings—remains a key factor to monitor.
While the company has shown resilience, the affordable housing segment is sensitive to interest rate changes and shifts in government housing policies. Future growth will depend on how effectively the company balances this expansion with its cost of funds. Investors may continue to monitor upcoming quarterly results to see if the company can maintain its current asset yields and delinquency levels as it scales its loan book.