Home First Q1 profit rises 34.5% to ₹160 cr, AUM growth on track
Assets under management grow 25.7% to ₹16,938 cr, disbursements hit record ₹1,628 cr. MD reaffirms ~25% AUM growth for FY27.
— 4 earlier stories on Home First Finance Company India Ltd. →What's new
- PAT jumped 34.5% YoY to ₹160 cr, driven by loan growth and stable margins.
- AUM rose 25.7% to ₹16,938 cr; quarterly disbursements hit a record ₹1,628 cr.
- Asset quality steady: gross stage-3 loans at 1.8%; network expanded to 175 branches.
Why this matters
Home First delivered another quarter in line with its FY27 guidance of ~25% AUM growth. Record disbursements and steady asset quality show demand remains resilient even as the housing finance sector faces margin pressure. Consistent execution strengthens the case for its premium valuation.
What we're watching
- Sustained disbursement momentum in coming quarters.
- Net interest margin trajectory amid rising funding costs.
- Branch expansion pace and its impact on cost-to-income ratio.
The full read
Home First Finance kicked off FY27 with a 34.5% jump in net profit to ₹160 crore. Assets under management grew 25.7% to ₹16,938 crore, and quarterly disbursements hit a record ₹1,628 crore — in line with the ~25% full-year AUM growth target. Asset quality held steady, with gross stage-3 loans at 1.8%. The company added four branches (total 175). Managing Director Manoj Viswanathan reiterated confidence in achieving around 25% AUM growth for the full year. The results contain no new strategic guidance. For a housing financier trading at 23x trailing earnings, consistent execution like this reinforces the premium. The next test: whether margins can hold as funding costs edge up.
Questions answered
- How does this quarter compare to Home First's own guidance?
- The company reiterated its full-year AUM growth target of around 25%, and Q1's 25.7% YoY AUM growth is in line with that path. PAT growth of 34.5% also matches prior trends.
- What drove the profit growth?
- Strong loan growth (AUM up 25.7%) combined with stable net interest margins and controlled credit costs (gross stage-3 unchanged at 1.8%) powered the 34.5% PAT increase.
- Are there any signs of asset quality stress?
- No. Gross stage-3 loans remain at 1.8%, and the company added 4 branches while maintaining its credit discipline. The stable asset quality is a positive.
- Did the company provide any new guidance or strategy changes?
- No material changes. The MD reaffirmed the existing growth outlook of ~25% AUM growth for FY27. This is a routine earnings update with no strategic surprises.
Home First Finance Company India Ltd.
Latest quarter · Mar 2026
Leverage & growth
Story so far
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