Financial Performance

Home First Finance Company India Limited (HomeFirst) posted profit after tax (PAT) of ₹170 crore for the second quarter of FY27, representing a 29.1% year‑on‑year increase and a 6.5% quarter‑on‑quarter rise. Total income rose to ₹567 crore, up 18.4% YoY, while net total income reached ₹343 crore, a 23.9% YoY gain. Profit before provision and tax (PPOP) was ₹238 crore, up 26.1% YoY.

Asset Growth and Disbursements

The company’s assets under management (AUM) expanded to ₹18,010 crore, a 27.0% YoY growth and 6.3% QoQ increase; housing loans accounted for 84% of the AUM. Loan disbursements for the quarter amounted to ₹1,705 crore, up 32.2% YoY and 4.7% QoQ.

Profitability and Efficiency Metrics

Return on assets (ROA) stood at 4.2% and return on equity (ROE) improved to 14.9%, a 150 basis‑point YoY uplift. The cost‑to‑income ratio fell to 30.8% from 32.7% in Q1, indicating better operational efficiency.

Asset Quality

Gross Stage‑3 assets were 1.7%, a 10‑basis‑point QoQ improvement. Credit cost was 40 bps. The proportion of loans with 1+ days past due (DPD) was 4.7%, and 30+ DPD stood at 3.2%.

Funding and Margins

The spread on loans (excluding co‑lending) was 5.2%, while the cost of borrowings remained flat at 7.8% QoQ.

Capital Adequacy and Liquidity

HomeFirst’s capital adequacy ratio (CRAR) was 39.8%. Net worth was reported at ₹4,665 crore, and the liquidity buffer amounted to ₹2,666 crore.

Operational Highlights

During the quarter, HomeFirst added six new branches, bringing its network to 181 branches across 13 states/UTs, supported by 379 touchpoints and a workforce of 2,014 employees.

ESG Initiatives and Recognition

The company’s Green Homes initiative certified an additional 100 homes, raising the cumulative total to 650 homes as of September 2026. HomeFirst also received the ‘ESG & Financial Inclusion’ award in the NBFC category at ASSOCHAM’s 21st Annual Summit & Awards.

Management Commentary

Mr. Manoj Viswanathan, Managing Director & CEO, stated that the quarter was marked by the highest ever disbursements, continued expansion of the distribution franchise, and disciplined execution across markets. He highlighted stable asset quality, progress on the Green Homes initiative, and outlined FY27 priorities: sustain growth momentum, preserve portfolio quality, protect profitability, and improve operating efficiency.