Home First Finance Q3FY26 Concall Decoded: ₹14,925 Cr AUM, 25% Growth Target—And a CEO Who’s Not Going Anywhere
1. Opening Hook
Rumors were floating faster than affordable housing prices in Gujarat—apparently the CEO was packing bags. Turns out, the only thing moving out is delinquency, not leadership. 😏
While competitors debate rate cuts and affordable housing headlines scream slowdown, Home First quietly clocked ₹1,318 crore in quarterly disbursements and nudged AUM to ₹14,925 crore. Asset quality wobble? Contained. Margin pressure? Managed. Growth guidance? Trimmed, but still ambitious at 25%.
Oh, and just in case WhatsApp University was wondering—Manoj Viswanathan made it clear: he’s not leaving.
So, what’s really happening beneath the polite PowerPoint optimism? Are green shoots real or just seasonal Q4 optimism?
Read on—because the interesting bits are tucked between “range-bound” and “calibrated approach.”
2. At a Glance
AUM up 24.9% YoY – Growth engine still humming, even after a few tariff potholes.
NIM at 6.0% – Margins rebounded; ALCO deserves a quiet round of applause.
PAT ₹140 Cr (↑44% YoY) – Profit growth outpaced loan growth. Not bad.
Gross Stage 3 at 2% – Up 10 bps QoQ, but management says Q4 is redemption season.
Cost-to-Income 32% – Gratuity provision crashed the party by 100 bps.
Capital Adequacy 49% – Capital cushion thick enough to survive a monsoon.
BT-out down to 6.6% – Retention counseling finally showing up in numbers.
3. Management’s Key Commentary
“We are positioned to achieve 25% AUM growth driven by enhanced distribution and technology adoption.” (Translation: Growth may be slower, but we’re still playing offense. 😏)
“There are no plans or intent to move out of Home First.” (Translation: Stop reading into LinkedIn activity. I’m staying.)
“1+ DPD improved to 5.3%, down 20 bps QoQ.” (Translation: Early stress peaked. We’ve turned the corner—or at least we hope so.)
“Gross Stage 3 is at 2%. We are confident this will improve going forward.” (Translation: Q4 is traditionally strong. Please let seasonality save us.)
“PLR reduced by 10 bps effective January 1.” (Translation: Borrowing costs fell, so we passed a slice to customers. Just a slice.)
“Bounce rates are becoming more behavioral rather than structural.” (Translation: Customers forgot which account had money. Eventually they paid.)
“We aim to take co-lending to 10% of AUM.” (Translation: Higher ticket size customers, lower capital strain—strategic shift underway.)
“UP will be a large contributor from FY28 onwards.” (Translation: We’re building the team first. No rush to burn capital.)
4. Numbers Decoded
Metric
Q3 FY26
Commentary
AUM
₹14,925 Cr
25% growth still intact
Disbursements
₹1,318 Cr
December crossed ₹500 Cr/month
Portfolio Yield
13.4%
Stable despite rate chatter
Cost of Borrowing (ex-CL)
8.0%
Down 10 bps
Spread (ex-CL)
5.4%
Comfortably above guidance band
NIM
6.0%
Up from 5.4% QoQ
Credit Cost
40 bps
Controlled
Gross Stage 3
2.0%
Tamil Nadu still heavy
Capital Adequacy
49%
Overcapitalized, post QIP
Decoded: Margins expanded because borrowing costs eased faster than PLR cuts. Asset quality stress largely localized. Capital is abundant—growth now depends on execution, not funding.
5. Analyst Questions
On Disbursement Lag: Analysts worried growth was slightly underwhelming. Management blamed macro overhang and MFI spillovers tapering off. Translation: “H1 was messy, H2 looks cleaner.”
On Tamil Nadu Stress: Tariffs + team churn = elevated NPAs. Stabilization underway; meaningful recovery expected FY27 Q2 onward.
On Competitive Rate Pressure: Affordable players offering sub-12% loans. Management says PLR cuts will mirror borrowing cost, not competitor aggression.
On Bounce Rates: Higher bounce ≠ worse collections. Customers juggling accounts. Behavioral, not structural.
