Company Overview

Home First Finance Company India Ltd. is a technology-driven affordable housing finance company with a pan-India presence. Its hub and spoke distribution covers 80% of the affordable housing market in the country. The company provides home loans predominantly to first-time home buyers with a monthly income of less than ₹50,000. 83% of its Assets Under Management (AUM) comprises housing loans with an average ticket size of ₹1.20 million.

Financial Performance & Metrics (FY26)

  • AUM Growth: Achieved a 24.9% year-on-year growth in AUM, reaching ₹96,978 million as of March 2026, from ₹71,980 million in March 2025. The 4-year CAGR (FY22-FY26) stands at 31%.
  • Disbursement Growth: Disbursements grew by 23.5% year-on-year and 19.3% quarter-on-quarter.
  • Net Worth: Net worth stood at ₹43,565 million as of March 2026, showing consistent growth.
  • Profitability: Adjusted Return on Assets (RoA) was 4.0% and Adjusted Return on Equity (RoE) was 16.8% for FY26 (pre-money ROE, adjusted for QIP).
  • Asset Quality: Gross Non-Performing Assets (GNPA) were 1.6% and Net Non-Performing Assets (NNPA) were 1.0% as of March 2026. The annualized bounce rate for Q4FY26 was 6.4%.
  • Capital Adequacy: The Capital Adequacy Ratio (CAR) was 30.3% as of March 2026.

Funding & Liquidity

  • Lender Base: Maintains a diversified funding profile with 31 lending partners, comprising 24 commercial banks, 2 foreign lenders, 1 financial institution, and 4 NBFCs.
  • Borrowings: Raised ₹4,789 crore through various modes in FY26. Total borrowings include off-book direct assignment and co-lending.
  • Cost of Borrowing: The cost of borrowing improved to 8.1% from 8.4%, reflecting stronger franchise strength and a disciplined funding strategy.
  • Credit Ratings: Holds long-term credit ratings of ICRA AA (Stable), CARE AA (Stable), and India Ratings AA (Stable). Short-term ratings are A1+ from ICRA and India Ratings.
  • Exposure: Has zero exposure to commercial papers. The single largest lender is the National Housing Bank (NHB) with an outstanding of ₹19,484.1 million.
  • NCDs: Received a ₹2,800 million NCD investment from the International Finance Corporation (IFC), noted as a step towards sustainability and green financing.

Portfolio & Customer Details

  • Customer Focus: Serves self-employed (e.g., business owners, contractors) and formal salaried individuals (e.g., army personnel, tailors, NRIs).
  • Ticket Size Distribution: The loan book is granular, spread across ticket sizes: Up to ₹0.5mn, ₹0.5-1mn, ₹1-1.5mn, ₹1.5-2.0mn, ₹2.0-2.5mn, and Above ₹2.5mn.
  • Customer Profile Ratio: The portfolio has a high ratio of salaried customers versus self-employed.
  • Interest Rates: Disclosed example customer loans had interest rates ranging from 12.50% to 15.00%.

Shareholding Pattern (as on June 19, 2026)

  • Domestic Institutional Investors (DIIs): Major holders include HDFC Mutual Fund (7.4%), Kotak Mutual Fund (5.2%), True North Fund V LLP (4.7%), and Aditya Birla Sunlife Mutual Fund (2.2%).
  • Foreign Institutional Investors (FIIs) & FPIs: Major holders include Fidelity International (9.5%), Capital Group (8.0%), Norges Bank Investment Management (5.3%), and Vanguard Group (3.6%). Aether (Mauritius) Limited, linked to GIC, holds 2.3%.
  • ESOPs: Total ESOPs in force were 3.0% of total paid-up capital as of March 2026 (down from 4.3% in March 2025).

Operational & Strategic Highlights

  • Employees: The company has 1,855 employees with a median age of 26 years, fostering a culture of continuous learning and innovation.
  • Technology: Employs a tech-in-mind approach with AI and voice-enabled capabilities across lead generation, verification, underwriting, collections, and customer service. Uses data science-backed centralized underwriting integrated with Account Aggregator and proprietary customer scoring models.
  • Expansion Strategy: Follows a contiguous, data-led expansion strategy focused on markets with sustained economic momentum, income levels, and industrialization.
  • Risk Management: Focuses on proactive management of credit, operational, and reputational risks through a combination of technology and qualitative assessment. Maintains strict regulatory compliance.

Market Opportunity & Growth Drivers

  • Market Size: India's total housing loan outstanding was ~₹43.5 lakh crore as of March 2026, projected to reach ₹56 lakh crore by FY28 (CRISIL). The affordable housing segment (₹5-40 lakh ticket size) was ~₹21 lakh crore, estimated to grow to ₹33 lakh crore by FY30 at a ~12% CAGR (company internal estimates).
  • Macroeconomic Resilience: India's macro economy is noted as resilient, supported by diversified oil imports, a strong current account, high FX reserves, and a broad export mix.
  • Demographics & Urbanization: Growth is driven by income formalization, urbanization, and an expanding mortgage-eligible cohort. An estimated ~35 crore additional urban residents are expected by 2047.
  • Digital Infrastructure: India's digital stack (e.g., UPI, AA) provides high-quality data, improving credit analysis and enabling scaling with discipline.
  • Government Policy: Government interventions like PMAY and urban infrastructure investment act as key facilitators for the affordable housing market.
  • Inflation Impact: Housing Price Index (HPI) and Consumer Price Index (CPI) growth since FY19 have naturally expanded loan ticket sizes, increasing the Total Addressable Market (TAM).

ESG Initiatives

  • ESG Score: Holds an S&P Global ESG Score of 46, categorized under 'Low Risk Strong Management' by Morningstar Sustainalytics.
  • Green Homes: Has enabled 450 Green Homes certified under the Edge certification program.
  • Digital Processes: Employs digital business processes to minimize paper use and promote sustainable operations.

Board and Management

  • Managing Director & CEO: Manoj Viswanathan.
  • Company Secretary & Compliance Officer: Shreyans Bachhawat (ACS NO: 26700).
  • Board of Directors: Includes distinguished members with backgrounds at True North, McKinsey, Google, and ICICI Bank.
  • Management Team: Described as experienced, with team members having backgrounds at institutions like IDFC Bank, Kotak Mahindra Bank, Citibank, and Asian Paints.