Home First Finance Company India (HOMEFIRS IN) – Q1FY27 Result Update – Healthy growth and margin outlook; steady asset quality – Upgrade to ‘BUY’
Published on 29 Jul 2026
Disbursements/ AUM in Q1 saw a strong growth of 31%/ 26% YoY. Commentary guided for ~25% AUM growth in FY27; we build the same considering deeper penetration across both new and existing markets. Expect FY27/28E NIM to be range-bound at ~6.1% with multiple levers to control CoF. Credit cost is likely to be benign- we build an improvement to 34/32bps in FY27/FY28E (vs. 40bps in FY26). We increase our FY27/ FY28E estimates by factoring in (1) strong AUM growth (2) stable spreads and (3) benign credit costs. We increase the multiple to 2.6x with a TP of INR1,385. Upgrade to BUY on healthy growth and margin outlook.
