Home First Finance Company India Ltd. share price target

Home First Finance delivered another strong quarter with AUM growing 25.7% YoY to 16,938 crore, supported by 31% YoY growth in disbursements to 1,628 crore, led by higher home loan originations. Profitability remained healthy with PAT increasing 34.5% YoY to 160 crore, driven by 38.2% YoY growth in NII, while PPOP rose 32.9% YoY. The company maintained industry-leading profitability with RoA of 4.2% (+10bps QoQ) and RoE of 14.5% (+50bps QoQ). Liability repricing supported margin expansion with NIM improving to 6.0%, while...

Expect FY27/ FY28E NIM to be largely range-bound Steady asset quality; credit cost at 34/32bps in FY27E/28E Disbursements/ AUM in Q1 saw a strong growth of 31%/ 26% YoY. Commentary guided for ~25% AUM growth in FY27; we build the same considering deeper penetration across both new and existing markets. Expect FY27/28E NIM to be range-bound at ~6.1% with multiple levers to control CoF. Credit cost is likely to be benign- we build an improvement to 34/32bps in FY27/FY28E (vs. 40bps in FY26). We increase our FY27/ FY28E estimates by factoring in (1) strong AUM growth (2) stable spreads and (3)...

Home First Finance (HomeFirst) delivered robust disbursements of INR 16.3bn (up 4% QoQ), despite the seasonally slow quarter. Spreads remained resilient at 5.2% (flat QoQ), with incremental spreads at 5.4%, while BT-out hit a multi-quarter low at 4.5% during Q1FY27, reflecting robust credit demand and HomeFirst’s strong market positioning.

Home First Finance (HOMEFIRST)’s 1QFY27 PAT grew 34% YoY to INR1.6b (in line). NII in 1QFY27 grew 31% YoY to INR2.5b (in line). Other income grew 28% YoY to INR779m (vs. MOFSLe of INR682m).

Home First Finance reported a strong FY26 performance, reflecting healthy growth, improving profitability and stable asset quality. AUM grew ~25% YoY to 15,878 crore, supported by record Q4 disbursements of 1,572 crore and improving traction across formal urban housing markets. PAT increased sharply by ~41% YoY to 540 crore, while reported ROE stood at ~14%, reflecting healthy operating leverage and profitability. Origination yields remained healthy at ~13%, with management reiterating portfolio spread guidance of 5 5.25%, supported by its floating-rate asset book. Asset quality improved further,...

Home First Finance (HomeFirst)’s disbursements reached INR 15.7bn in Q4FY26 (up 19% QoQ), breaking multi-quarter average range of INR 11–13bn.

Spreads to moderate amid PLR cut and higher CoF Delinquencies improved; credit cost at 30-40bps in FY27E Disbursements/ AUM in Q4 saw a strong growth of 24%/ 25% YoY. Commentary guided for 25% AUM growth in FY27 led by recovery in TN/KN and deeper penetration across both new and existing markets. We build ~24% amid rising competitive intensity. Expect FY27/28E spreads to see a slight moderation as the portfolio reprices; hardening bond yields likely to exert some pressure. Expect improvement in opex to flow-through as productivity benefits materialize. Credit cost is likely to be benign- we...

Home First Finance (HOMEFIRST)’s 4QFY26 PAT grew 43% YoY to INR1.5b (in line). PAT for FY26 grew ~41% YoY to INR5.4b. NII in 4QFY26 grew 37% YoY to INR2.4b (in line). Other income grew 37% YoY to INR730m.

Affordable HFCs have historically delivered robust growth, driven by strong penetration in low-tier cities, expertise in lending to informal income profiles, and relatively benign competitive intensity. However, in recent times, growth in the segment has moderated.

HOMEFIRS: Tech-driven, connector-led affordable housing lender ........................ 4 Underwriting model - Key features ............................................................................................ 4 Investment Arguments .......................................................................................................................... 8 Deepening distribution across geographies .......................................................................... 8 Making tech ubiquitous at every stage..................................................................................... 9 Distribution-light model keeps costs under control ......................................................... 11 Steady yields, strong liability profile to aid maintain spreads ..................................... 12 Expect higher credit costs over the near term ................................................................... 14...

HomeFirst’s 3QFY26 PAT grew 44% YoY to INR1.4b (in line). Excluding the provisions on the new labor codes, PAT growth was 47% YoY. NII grew 44% YoY to INR2.3b (5% beat). Other income grew 6% YoY to INR549m (vs. MOFSLe of INR704m).

Home First Finance’s (HOMEFIRS) 2QFY26 PAT grew 43% YoY to INR1.32b (in line). PAT in 1HFY26 grew ~39% YoY, and we expect PAT in 2HFY26 to grow 48% YoY. NII grew ~32% YoY to INR2.1b (in line).

Targeting India's Growing Middle-Class Housing Needs

HomeFirst’s 1QFY26 PAT grew 35% YoY to INR1.2b (in line). NII grew ~33% YoY to INR1.9b (in line). Other income jumped 60% YoY to INR609m (est. INR395m), aided by higher assignment income of INR247m (PY: ~INR195), higher fee income from insurance commissions, and higher investment income from the proceeds of the equity raise in Apr’25.

Home First Finance (HomeFirst), in its FY25 Annual Report, highlighted its digital-first approach to making home ownership more accessible by offering innovative housing finance solutions and leveraging technology to streamline processes.

HomeFirst’s 4QFY25 PAT grew 25% YoY to INR1.05b (in line). FY25 PAT grew ~25% YoY to INR3.8b. 4Q NII grew 26% YoY to INR1.7b (in line). Other income jumped 52% YoY to INR533m, aided by higher assignment income of INR300m (PY: ~INR150m).

Home First Finance (HomeFirst) in Apr’25 raised INR12.5b through a qualified institutional placement (QIP) at INR970 per share.

Home First Finance (Home First) was listed in Feb’21. Ever since, it has managed to stand out among peers in the affordable housing finance space, consistently delivering 6–8% QoQ growth every quarter.

Exhibits strong leadership in the affordable housing space

Home First Finance Company (HFFC) reported robust 3Q FY25 results driven by continued growth in disbursals (Rs 1,193 crore, +18.4% y-o-y, +1.4% q-o-q). AUM reached Rs 11,945 crore (+32.6% y-o-y, +6.4% q-o-q).