Repco Home Finance Q1FY26 Concall Decoded: Profit +71%, AUM +7%, Stage-2 Still a Horror Show at 9.7%
1. Opening Hook
Repco just turned 25 years old, celebrated with a fat 25% interim dividend, and yet still carries the baggage of old NPAs like an overstuffed suitcase on an IndiGo flight. Management boasted of “record sanctions and disbursements,” but analysts couldn’t help poking holes—especially around Stage-2 loans that look more like a graveyard than a loan book. Stick around, because the fun begins when management starts explaining how “professionalization” means giving promotions, not fixing risk models.
Sanctions ₹907 Cr (+25% YoY) – Loan papers flying faster than government subsidies.
AUM ₹14,690 Cr (+7% YoY) – Still tiny versus peers, but growth is growth.
PAT ₹180 Cr (+71% YoY) – Dividend party funded, at least.
Gross NPA 3.3% (vs 4.3% YoY) – A drop, but still ugly.
Stage-2 Assets 9.7% – Horror film continues; competitors sit at 2–4%.
Cost-to-Income 24% – Finally acting frugal, maybe cut back on samosa budget.
3. Management’s Key Commentary
“We are proud to declare 25% interim dividend to mark 25 years of service.” (Translation: We know investors care more about cash in hand than lectures on NPAs.)
“Disbursements ₹829 Cr, the highest ever in Q1.” (Translation: Even summer heat couldn’t stop our loan officers from signing deals like insurance agents in March.)
“Stage-2 assets down from 11.7% to 9.7%.” (Translation: Still embarrassingly high, but let’s call a disaster an ‘improvement.’)
“We’ve launched collection verticals and mega auctions to cut NPAs.” (Translation: Repo men are our new growth engine.)
“Employee morale boosted with promotions and increments.” (Translation: Throw a title and a few thousand rupees, and voilà—morale fixed!)
“We are conservative on builder loans with RERA checks.” (Translation: We saw Aptus burn their fingers and decided not to touch the flame… yet.)
“Cost of funds at 8.7%; we’ve tapped CPs and NHB refinance after 3 years.” (Translation: Banks still treat us like the broke cousin, so we’re testing the markets again.)
