Can Fin Homes (CANF IN) – Q2FY27 Result Update – Disbursement recovery in focus; margins remain stable – BUY
Published on 12 Oct 2026
Q2 disbursements saw a decline (-7% YoY) due to the implementation of project Tejas and cancellation of DDs, while loan book growth at ~10% YoY was supported by lower run-down (4.17%). IT-led efficiency gains and workforce rationalisation are expected to support disbursement growth in H2FY27. However, we remain conservative on growth and build in AUM growth of 13%/14% for FY27/FY28E, factoring in the lower H1 run-rate. We expect FY27/ FY28E NIM to trend broadly in-line with guidance at 3.75%. Asset quality remains comfortable with benign credit cost guidance of ~10bps for FY27. We slightly tweak our FY27/ FY28E estimates factoring a moderation in growth and heightened competition. We keep our P/ABV multiple unchanged at 1.7x Sep’28E, resulting in a TP of INR1,090. Valuation remains undemanding and sustained housing demand underpin our positive view. Reiterate BUY.
