Home First Finan Q2 FY26 Earnings Analysis

- The company aims for approximately 20% disbursement growth for the full year, targeting about Rs. 500 crores disbursement per month going forward (Page 15-16). - They expect two quarters with 7%-10% growth quarter-over-quarter to achieve this (Page 15). - After a slight dip in April, disbursement trends in May, June, and July are on track with plans, indicating recovery and growth momentum (Pages 7-8, 15). - The full-year disbursal guidance stands at Rs. 5,600 - 5,800 crores for FY26 (Page 7). - Market share has grown from 1.5% in FY22 to 2.3% in FY25 in the Rs. 5-25 lakh ticket size segment, with aspiration to reach closer to 5% in the next 4-5 years (Page 11). - Adding branches and employees continues to support growth, with six new branches planned in Q2 (Page 4).

- Home First Finance aims to maintain a strong AUM growth; Q1FY26 AUM grew 28.6% y-o-y. - Disbursement guidance for FY26 is Rs. 5,600-5,800 crores with recent monthly run-rates expected to improve. - Profit After Tax increased 35.5% y-o-y to Rs. 119 crores in Q1FY26 with ROA at 3.7% and ROE at 14.9%. - Cost-to-income ratio expected to remain stable in the range of 2.6%-2.7% operating expenses to assets, improving to 2.5% medium-term. - Fee income, especially insurance commission, expected to remain steady at Rs. 15-20 crores per quarter. - Marginal cost of borrowing expected to decline below 8% by Q4FY26, potentially improving margins. - Profitability levers include stable yield (~13.4%) and tight credit cost guidance at 30-40 bps annually. - No explicit EPS guidance provided, but trend points to steady earnings growth supported by volume gains and margin management.

The document does not explicitly mention any specific current or future Capex, capital investments, or strategic investments. However, some relevant points related to investments and growth initiatives are: - The company is investing in growth by adding branches and people, maintaining an operating cost to total assets ratio of 2.6% - 2.7% for the full year. - Digital adoption and technology investments are ongoing, including the launch of “Pulse” (an AI-powered omnichannel platform) and development of in-house Document Management and Treasury Management Systems. - There is a focus on expanding co-lending business, targeting 10% of disbursements via this route as part of strategic growth. - The company continues to build and rebuild teams in markets like Maharashtra, indicating manpower investment. - No specific Capex figures or strategic investment amounts/targets are disclosed.

- The company recently raised Rs. 1,250 crore through its first Qualified Institutional Placement (QIP), significantly boosting net worth and capital base (Page 3). - There is no specific mention of any immediate or planned future fundraising through debt or equity in the provided transcript. - The company has a strong capital adequacy ratio of 49.6% as of June 2025 and a healthy borrowing profile with well-diversified and cost-effective sources (Page 6). - Borrowing strategy focuses on long-tenure (minimum 5 years) with mix of public/private banks, NHB, assignment, co-lending, and other sources (Page 11). - Co-lending is expected to increase and remain important, aiming for 10% of disbursements through this route (Page 5). - There is confidence in funding growth ambitions from the strong balance sheet and capital base, but no explicit mention of upcoming fundraising plans.

The document does not provide specific information regarding the current or expected orderbook or pending orders for Home First Finance Company India Limited. The focus is primarily on disbursement figures, loan portfolio performance, regional collections challenges, credit costs, productivity, and borrowing costs. Key points related to loan disbursement and growth include: - Disbursement target growth of approximately 20% for the full year. - Monthly disbursement run rate targeted around Rs. 500 crores from Q2 onwards. - April saw a dip in disbursement (around Rs. 380 crores) but May, June, and July showed recovery. - Challenges in some regions (Surat, Coimbatore-Tirupur, Tamil Nadu, Telangana) are expected to normalize. - Active connectors count: 3,600. - Co-lending book increased to Rs. 434 crores, targeting 10% of disbursements through co-lending. No direct references to orderbook or pending orders were made in the provided content.