Home First Finance Company India Ltd.Q2 AUM +27%, PAT +29%, ROE 14.9%

Home First Finance's Q2 FY27 call, held on 28 October 2026, reported assets under management of ₹18,010 crore, up 27% on the year and 6.3% on the quarter, disbursements of ₹1,705 crore, up 32.2%, and profit after tax of ₹170 crore, up 29.1%.

Return on assets was 4.2% and return on equity rose 40 basis points to 14.9%. Net interest margin was 6.0% and the spread, excluding co-lending, was 5.2%. Gross Stage 3 improved 10 basis points to 1.7%, credit cost was 40 basis points and early delinquencies were unchanged. Co-lending slowed to ₹1.8 crore of disbursements while new RBI rules are put in place. Management kept its 25% AUM growth target of ₹20,000 crore by March 2027, an exit ROE of 15% this year and 16% next year, and a spread of 5.0% to 5.2%.

It has not yet raised its lending rate because borrowing costs have not moved, and expects the draft insurance distribution rules to cost about 35 basis points of ROA, of which 20 to 25 basis points will be made up through other levers.