1. At a Glance
HFFC is the housing finance player that promises to sanction your home loan in 48 hours — because in India, waiting months for a sanction letter is so last decade. Q1 FY26 clocked in ₹454 crore revenue, ₹118.89 crore net profit, and a steady expansion across low- and mid-income housing finance. In the sector’s pecking order, HFFC is the ambitious younger sibling — smaller than LIC Housing, but with tech swagger and growth rates that could make the old guard sweat.
2. Introduction
Affordable housing finance isn’t exactly a glamour business — no flashy derivatives desks, no Wall Street-level bonuses. But in a country where millions dream of owning a house, the market is as deep as your EMI schedule is long.
HFFC has chosen the sweet spot: first-time buyers, families earning under ₹50,000 per month, loans for purchase and construction. That’s a big enough pond, and they’ve decided to be the fastest fish in it — tech-led onboarding, lean operations, and a sales force that’s part banker, part counsellor, part wedding guest.
The result? A 5-year profit CAGR of 37% and sales CAGR of 30%, all while keeping NPAs low and margins
healthy.
3. Business Model (WTF Do They Even Do?)
- Core Product: Affordable housing loans
- Target Market: Low & mid-income segments
- Ticket Size: Typically ₹10–30 lakh loans
- USP: 48-hour sanction promise, tech-enabled KYC, minimal paperwork
- Geography: Presence in tier-1 and deep tier-2 cities, building reach into semi-urban India
- Distribution: Branch network + digital onboarding + field agents
Revenue is interest-driven, with minor contributions from processing fees. Costs are tightly controlled, but like any lender, the main game is cost of funds vs lending yield.
4. Financials Overview
Q1 FY26 (Jun 2025)
- Revenue: ₹454 crore (+34.83% YoY)
- Net Profit: ₹118.89 crore (+35.46% YoY)
- EPS: ₹11.52
- ROE (TTM): 16.46%
- Gross NPA: 1.70%
- Net NPA: 1.30%
Annualising EPS: ₹11.52 × 4 = ₹46.08 → P/E = 1,282 / 46.08 ≈ 27.8 (lower than reported 32.0, thanks to fresh
