Home First Finance Reports 29% Rise in Q2 PAT at ₹170 Crore on Strong AUM Growth

Home First Finance Company reported a net profit of approximately ₹170 crore for the second quarter, marking a 29 percent year-on-year increase. The growth was driven by a 27 percent expansion in assets under management and improved operating efficiencies.

MUMBAI — Home First Finance Company (HFFC) has announced its financial results for the second quarter, reporting a healthy profit after tax (PAT) of approximately ₹170 crore. This represents a 29 percent increase compared to the same period in the previous year, meeting market estimates and supported by a robust expansion in assets under management (AUM).

The company’s AUM grew by 27 percent year-on-year to reach ₹18,000 crore. This expansion was backed by ₹1,700 crore in disbursements during the quarter. HFFC also observed a moderation in balance transfer outflows down to 4.4 percent, which reflects an improvement in overall customer retention.

Disbursements during the period were supported by healthy loan ticket sizes ranging between ₹15 lakh and ₹16 lakh. Furthermore, the company continued its strategic tilt toward higher-ticket loans exceeding ₹25 lakh, which currently account for about 20 percent of its total AUM. Meanwhile, direct assignments and co-lending declined to ₹280 crore, representing 17 percent of total disbursements.

Profitability during the quarter was additionally aided by improved operating efficiency, which was primarily driven by lower employee expenses. Following these results, the management has reiterated its long-term guidance of achieving approximately 25 percent AUM growth alongside a spread of 5 to 5.25 percent.

CEO Manoj Vishwanathan, whose tenure extends through July 2028, reiterated his long-term commitment to the firm. Analysts note that HFFC's calibrated growth strategy and execution track record position it well to capture upcoming growth opportunities while maintaining asset quality and profitability. Projections indicate a return on equity (RoE) of about 16 percent by fiscal year 2028, with current valuations remaining attractive following recent market corrections.

"Home First Finance Company’s Q2 performance demonstrates how disciplined execution and a focus on operational efficiency can drive steady bottom-line growth in the housing finance sector. Sustaining a 27 percent growth in AUM while simultaneously improving customer retention and managing employee expenses highlights a balanced operational approach. As the company continues to navigate its portfolio toward higher-ticket loans while maintaining its growth guidance, its ability to preserve asset quality will remain a key factor for long-term value creation in the market." — Dr. Shishir Gupta, Founder & CEO, StartupLanes