Home First Finance Q4 profit jumps 43%, asset quality improves; declares dividend of ₹5.20

Home First Finance Company India Ltd on Wednesday (May 6) reported a 42.8% year-on-year rise in consolidated net profit for the fourth quarter at ₹149.4 crore, compared with ₹104.6 crore in the same period last year. Net interest income (NII) increased 36.5% to ₹306.1 crore in the quarter, against ₹224.3 crore a year earlier.

For Q4FY26, total income rose 21.3% year-on-year to ₹505 crore. Pre-provision operating profit increased 44.9% to ₹211 crore. Return on assets improved to 4.1%, while return on equity stood at 14%, with pre-money adjusted ROE at 17.5%.

The company reported assets under management (AUM) of ₹15,878 crore in Q4FY26, reflecting a 24.9% year-on-year growth and 6.4% sequential growth. Disbursements reached ₹1,572 crore, rising 23.5% year-on-year and 19.3% quarter-on-quarter, marking a new high.

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Asset quality improved during the quarter, with 1+ DPD at 4.7%, 30+ DPD at 3.2%, and gross NPA at 1.8%, showing sequential improvements of 60 bps, 50 bps and 20 bps, respectively. Bounce rates remained range-bound at 16.3% in April 2026. Credit cost stood at 40 bps for the quarter.

Housing loans accounted for 83% of AUM, while the EWS/LIG segment formed around 70% of the customer base. The company’s ex-CL spread on loans stood at 5.3%, down 10 bps quarter-on-quarter but up 20 bps year-on-year. Cost of borrowings improved to 7.9%, down 10 bps sequentially.

Total borrowings, including debt securities, stood at ₹10,590 crore, with a liquidity buffer of ₹3,126 crore. Provision coverage ratio on GNPA improved to 44.9% from 40.4% in the previous quarter, while total provisions to loans outstanding stood at 0.8%.

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Capital adequacy remained strong, with CRAR at 44.1% and Tier I capital at 43.8%, compared with 32.8% and 32.4% respectively in the previous year. Net worth rose to ₹4,357 crore from ₹4,180 crore in the previous quarter, supported by a recent equity fund raise of ₹1,250 crore in April 2026.

The company operates through 171 branches across 13 states and Union Territories, with total touchpoints increasing to 373.

The company has recommended a dividend of ₹5.20 per equity share of face value ₹2 each for the financial year ended March 31, 2026, which is equivalent to 260%. The dividend, subject to approval by shareholders at the ensuing Annual General Meeting, will be credited within 30 days after the conclusion of the AGM if declared.

Manoj Viswanathan, MD and CEO, said, "During the quarter, disbursement grew by 23.5% YoY and 19.3% QoQ, to an all-time high of ₹ 1,572 Crore. We continued to scale our distribution footprint in key affordable housing markets.

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During FY26, we expanded our network by adding 16 branches and 12 touchpoints, taking the total to 171 branches and 373 touchpoints. To support this growth, we strengthened our workforce with the addition of 221 employees, primarily in customer-facing roles, taking total headcount to 1,855."

Shares of Home First Finance Company India Ltd ended at ₹1,230.00, up by ₹43.45, or 3.66%, on the BSE.