Housing Finance Companies – Jul-Sep’25 Earnings Preview – Disbursals to pick up; growth to remain muted
Published on 08 Oct 2025
Our coverage HFCs could see a mixed quarter; AuM growth would pick up to 1.9% QoQ to Rs3.76trn (0.7% QoQ in Q1) with an uptick in disbursals of 27.6% sequentially as Q2 generally sees a pick-up after a fall in Q1. Housing segment for banks (incl. HDFC) may grow by ~2.4% QoQ/10.0% YoY. Disbursal run-rate of LICHF/CANF is a monitorable, given weak credit flow in last few quarters.
NIM for coverage HFCs could fall by 11bps QoQ to 2.93%. NII may fall QoQ and grow by 4.0% YoY to Rs26.6bn due to faster loan repricing. Other income could increase by 8.4% QoQ to Rs2.2bn owing to seasonality which would be offset by 15.0% rise in opex to Rs6.08bn led by increase in both, staff costs and other opex. Hence, PPoP could fall QoQ by 4.6%. We see provisions to fall by 5bps QoQ to 21bps as Q2 sees better recoveries. PAT might decline QoQ to Rs16.5bn.
