1. Opening Hook
In a quarter where India’s monsoon overstayed like that one guest who won’t leave the shaadi buffet, Home First still clocked 26% AUM growth – proving that affordable housing borrowers pay EMIs even if the sky is falling… literally.
But just when investors thought it was all sunshine, bounce rates ticked up, tariff tantrums hit Tamil Nadu, and customers began flirting with balance transfers like it’s Tinder for home loans.
Still, Management kept repeating: “Seasonal uptick, no weakness.” Sure, and my gym trainer keeps saying “water retention.”
Read on — the real masala hits later. You’ll want popcorn for this one.
2. At a Glance
- AUM up 26.3%– Growth hotter than Chennai’s leather units, but with fewer shocks.
- Total Income up 28%– CFO swears this time Excel didn’t auto-sum by accident.
- PAT up 43%– Profits leapt like they heard of a SEBI inspection elsewhere.
- NIM at 5.4%– Expanding faster than India’s festive-season waistlines.
- Gross Stage 3 at 1.9%– NPAs rising, but still low enough for Management to say “chill.”
- Bounce Rate at 17.4%– Even borrowers celebrated Diwali with EMI fireworks.
- Capital Adequacy at 48.4%– So much capital they could start another HFC just for fun.
3. Management’s Key Commentary
Quote:“AUM grew 26.3% y-o-y with strong distribution expansion.”(Translation: We added branches faster than we added borrowers in Coimbatore.)
Quote:“Bounce rate was slightly higher due to date confusion.”(Translation: EMI reminders + long weekend = ‘Arre Monday ko de dunga’ syndrome 😏)
Quote:“Surat has shown signs of recovery; Coimbatore-Tirupur remains stressed.”(Translation: One city’s partying again, the other still crying into its textile inventory.)
Quote:“Credit cost will stay around 40 bps.”(Translation: We’ll manage somehow. Sleep peacefully. We won’t.)
Quote:“Rejection rate has gone up; we’re avoiding certain segments.”(Translation: If your factory says ‘Made in Tirupur’, we’re suddenly very busy.)
Quote:“Cost of borrowing will drop below 8% by March.”(Translation: RBI rate cuts + good karma + maybe a few very sweet bank RM calls.)
Quote:“No green shoots commentary; let the quarter speak.”(Translation: Last time we saw ‘green shoots,’ they turned into weeds 🌱→🌪️)
4. Numbers Decoded
Metric Q2 FY26 Q1 FY26 YoY/QoQ Commentary
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AUM (₹ Cr) 14,178 13,486 26% YoY – rocket mode
Disbursements (₹ Cr) 1,289 1,242 Muted – tariff blues
NIM (%) 5.4% 5.2% Up – thank you, RBI
GNPA (%) 1.9% 1.7% Rising – tariff hangover
1+ DPD (%) 5.5% 5.2% Festivals + confusion
30+ DPD (%) 3.7% 3.3% Textile tears
Credit Cost (bps) 40 40 Steady – for now
Cost-to-Income (%) 32% 34.2% CFO flex mode
Capital Adequacy (%) 48.4% 50% Still absurdly highOne-liners:
- AUM growing like a housing bull market; NPAs rising like a reality check.
- NIM improved despite BT-outs behaving like EMI escape artists.
- Cost-cutting is working, but asset quality is working overtime too.
5. Analyst Questions (Decoded)
Q:Bounce rate rising — should we panic?A:“Seasonal.”(Translation: Please don’t panic. That’s our job.)
Q:Disbursements slower — why?A:“We’re rejecting more customers.”(Translation: ‘No’ is the new ‘next quarter.’)
Q:Asset quality stress concentrated or spreading?A:“Mostly leather, textile belts.”(Translation: If you’re exporting anything except shrimps, we still love you.)
Q:NIM outlook?A:“Expanding.”(Translation: Borrowing cost finally behaving. Hallelujah.)
Q:Market share growth slowing?A:“Ups and downs are tactical.”(Translation: Some states ghost us temporarily.)
6. Guidance & Outlook
Management is sticking to25%+ AUM growth, like it’s a New Year resolution theyactuallyfollow. Disbursement
