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Informist, Monday, Oct. 26, 2026

 

MUMBAI - Home First Finance Co. India Ltd. is expected to report robust growth in its net profit for the September quarter, driven by a sharp jump in its net interest income and also supported by strong growth in asset under management and strong disbursements, according to brokerages tracking the company. The net profit is expected to grow sequentially, supported by a stable spread and growth in net interest income.

 

The housing finance company's net profit is expected to rise over 32% on year to INR 1.74 billion for the September quarter. Sequentially, the net profit is expected to rise 9% from INR 1.60 billion. The highest estimate for net profit is INR 2.22 billion from Antique Stock Broking Ltd. and the lowest is INR 1.64 billion from 360 ONE Capital Market Pvt Ltd.

 

The housing finance company's net interest income for the September quarter is expected to rise 12% sequentially to INR 2.85 billion. Analysts also expect the company's net interest income to rise around 38% on year. The highest estimate for the net interest income is INR 3.44 billion from Yes Securities India Ltd. and the lowest is INR 2.61 billion by IDBI Capital Market Services Ltd.

 

The net interest income of the housing finance company is expected to grow 40% on year, according to IDBI Capital Market Services Ltd. The net profit of is expected to grow around 30%, supported by stable growth and spreads from its floating rate book, the brokerage said. The company's assets under management are expected to grow over 25% for the current financial year. The company's branch expansion and better productivity are expected to drive strong disbursements. Despite rising borrowing costs, lending spreads are expected to remain intact, the brokerage said.

 

"We forecast Home First to report ~33% YoY growth in disbursements, leading to AUM (assets under management) growth of ~27% YoY," Motilal Oswal said. The cost to income ratio may decline 90 basis points on quarter to about 32%. The margin and credit cost are expected to be a key factor in the company's earnings.  

 

Prabhudas Lilladhar Pvt. Ltd. expects strong disbursement momentum of around 13% for the quarter. The brokerage expects the cost-of-funds to be under pressure and the spread to remain steady in the 5% range. The impact of drought will be low for the housing finance company, as it is less exposed to agricultural credit. Balance transfer-out is expected to be under control. The brokerage expects the lender's assets under management to grow around 8%-10% in the current financial year.

 

Kotak Securities expects assets under management expansion of the company to remain strong and grow 6% sequentially and 27% year on year, driven by 35% growth in disbursements on year. The net interest margin is expected at 7.4%, only slightly up from 7.2% in the year-ago quarter. The brokerage expects the company's operating expenses to grow 24% on year, leading to a marginal improvement in the cost to average asset under management ratio of over 2.5% in the September quarter. This ratio was 2.4-2.6% in the previous four quarters, the brokerage said. 

 

Home First Finance Co. is a housing finance company that operates mainly in the affordable housing segment. The company offers loans for buying homes, for self-construction, for resale properties, for mortgages, for buying shops, for renovation, and also top-up loans.

 

Home First is expected to release its September quarter earnings Tuesday. Shares of the company ended 1% higher at INR 1,012 apiece on the National Stock Exchange. The stock is down 14% since the company announced its June quarter earnings.

 

Of the 11 brokerage reports available with Informist, 10 have a "buy" or equivalent recommendation on the stock with a target price of INR 1,411 per share. This is 39% higher than the current market price. Only one brokerage has a "sell" recommendation on the stock with a target price of INR 1,310 per share.

 

Following are the Jul-Sept quarter earnings estimates for Home First Finance from nine brokerages in descending order of estimate for net profit, in INR billion:

 

Brokerage	Net Interest Income	Profit After Tax
Antique Stock Broking Ltd.	2.67	2.22
IDBI Capital Market Services Ltd.	2.61	1.71
Motilal Oswal Financial Services Ltd.	2.68	1.69
Prabhudas Lilladher Pvt. Ltd.	2.72	1.69
JM Financial Institutional Securities Pvt. Ltd.	2.67	1.69
Nirmal Bang Equities Pvt. Ltd.	2.71	1.68
YES Securities (India) Ltd.	3.44	1.68
Kotak Securities Ltd.	2.68	1.65
360 ONE Capital Market Pvt. Ltd.	3.42	1.64
Average	2.84	1.74

 

End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Prasobh Namboothiri

Edited by Megha Rawat

 

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