Home First Finance Q2FY26 Profit Surges 43%, AUM Grows 26.3%

Home First Finance Company India Ltd announced robust financial results for the second quarter of FY26. Net profit surged by 43% year-on-year to ₹132 crore, while net interest income (NII) grew by 31.9% to ₹206.5 crore. Total income increased by 28% year-on-year to ₹479 crore. The company's assets under management (AUM) expanded by a significant 26.3% to ₹14,178 crore, with quarterly disbursements rising 9.6% to ₹1,289 crore. A substantial 83% of AUM is in housing loans, and approximately 60% of its customers belong to economically weaker and low-income groups. Asset quality remained stable, with Gross Non-Performing Assets (GNPA) at 1.9%. The company maintained strong capital adequacy at 48.4% (CRAR) and a healthy liquidity buffer of ₹4,280 crore. Borrowings cost reduced to 8.1%. Manoj Viswanathan, MD and CEO, highlighted disciplined growth and efficient liability management despite macro challenges, noting a pre-money adjusted ROE of 16.7%.

Impact This performance indicates strong operational efficiency and financial health for Home First Finance. The significant growth in profit, NII, and AUM suggests the company is effectively executing its strategy, especially in the affordable housing segment. This positive report could boost investor confidence in the company and its sector. Rating: 7/10.

Difficult Terms * Net Profit: The profit remaining after all expenses and taxes are paid. * Net Interest Income (NII): The difference between interest earned on loans and interest paid on deposits. * Assets Under Management (AUM): The total market value of investments managed by a company. * Disbursements: The total amount of money lent out by the company. * GNPA (Gross Non-Performing Asset): Loans where payments are overdue by 90 days or more. * CRAR (Capital to Risk-Weighted Assets Ratio): A measure of a financial institution's capital strength relative to its risk-weighted assets.