Home First Finance Reports 44% Profit Surge in Q3FY26; Stock Trades Near ₹1,051

Home First Finance Delivers Robust Q3FY26 Financial Performance

Home First Finance Company India Ltd. announced its financial results for the third quarter of FY26, showcasing a considerable uplift in its profitability. The company reported a net profit of ₹140.2 crore, marking a significant year-on-year increase of 44% from ₹97.7 crore in the same quarter of the previous fiscal year. This performance reflects strong operational execution and sustained business growth [11].

Key Financial Metrics and Profitability Enhancement

The company's net interest income (NII) saw a substantial jump of 44% year-on-year, reaching ₹234.8 crore, up from ₹163.1 crore in Q3FY25 [SOURCE A]. Total income for the quarter grew by 18.7% year-on-year to ₹484 crore [11]. Profitability indicators demonstrated improvement, with the return on assets (RoA) rising to 4.0% from 3.4% in Q3FY25. The return on equity (RoE) stood at 13.7%, while the pre-money adjusted RoE was reported at 17.1%, indicating effective leverage and capital utilization [11].

Assets Under Management and Disbursement Growth

Assets Under Management (AUM) expanded by 24.9% year-on-year and 5.3% quarter-on-quarter to ₹14,925 crore as of December 2025 [11]. Disbursements during the quarter reached ₹1,318 crore, representing a 10.5% year-on-year increase and a 2.2% sequential rise, underscoring healthy demand for housing finance solutions [1]. Housing loans continue to form the core of the company's portfolio, accounting for 83% of the total AUM [11]. Customers from economically weaker sections (EWS) and low-income groups (LIG) constitute approximately 60% of the customer base, aligning with the company's focus on affordable housing [11].

Asset Quality and Capital Adequacy

Asset quality remained a key focus, with gross stage 3 assets reported at 2% [SOURCE A]. The credit cost for Q3FY26 was maintained at 40 basis points [SOURCE A]. Home First Finance maintained a robust capital position, reporting a total capital adequacy ratio (CRAR) of 49.0%, with tier I capital at 48.6%. The company's net worth grew to ₹4,180 crore as of December 2025 [1].

Market Context and Valuation

Home First Finance Company India Limited's shares closed at ₹1,051.60 on January 22, 2026 [SOURCE A]. The company's market capitalization stands at approximately ₹10,900 crore [1, 2, 6, 8, 16]. With a trailing twelve-month (TTM) P/E ratio around 23.0x and a Price-to-Book (P/B) ratio of approximately 2.7x, the stock is trading within its historical valuation range [2, 6, 15]. The TTM ROE is reported around 16.8% [1, 15]. The housing finance sector, particularly the affordable housing segment, continues to be a focus area for growth, driven by government initiatives and rising demand for homeownership [7, 16]. The stock traded with a volume of 2,68,299 shares on January 22, 2026 [8].

Peer Comparison

Compared to its peers, Home First Finance operates in a competitive landscape. For instance, Aavas Financiers and Bajaj Housing Finance also cater to similar market segments, with varying valuation multiples and performance metrics [12]. Home First Finance's P/E ratio of approximately 23.0x is slightly higher than some peers like Can Fin Homes (~13x) but aligns with others like Aavas Financiers (~19x) [12]. Its TTM ROE of 16.8% is competitive within the sector [1, 15].