Home First Finance Company India (HOMEFIRS IN) – Q4FY26 Result Update – Healthy growth outlook supported by stable credit cost – Downgrade to ‘ACCUMULATE’
Published on 08 May 2026
Disbursements/ AUM in Q4 saw a strong growth of 24%/ 25% YoY. Commentary guided for 25% AUM growth in FY27 led by recovery in TN/KN and deeper penetration across both new and existing markets. We build ~24% amid rising competitive intensity. Expect FY27/28E spreads to see a slight moderation as the portfolio reprices; hardening bond yields likely to exert some pressure. Expect improvement in opex to flow-through as productivity benefits materialize. Credit cost is likely to be benign- we build an improvement to 33/32bps in FY27/FY28E (vs. 40bps in FY26). We increase our FY27/ FY28E estimates factoring in stable NIM and opex. We tweak our multiple slightly to 2.5x (earlier 2.4x) with a TP of INR1,350. Downgrade to ACCUMULATE as the stock has run up by 21% in the past month.
