Home First Finance Company India: Business Overview & Financial Analysis
Home First Finance Company India is a technology-driven affordable housing finance enterprise headquartered in Mumbai, Maharashtra. Promoted by Bessemer Venture Partners, True North, and Warburg Pincus, the company caters to low- and middle-income self-employed and salaried individuals in urban and semi-urban Indian markets. Operating a digital-first hub-and-spoke model, Home First Finance provides housing loans for property purchase, construction, extension, and small-ticket loans against property (LAP) backed by self-occupied residential collateral.
Key Housing Finance Ratios & Performance Metrics of Home First Finance (Q1 FY27)
Home First Finance tracks net interest margins, capital adequacy, asset quality, and return ratios across its lending operations.
- Capital Adequacy Ratio (CRAR) – 42.60% (Tier-I CRAR: 42.20%)
- Net Interest Margin (NIM) – 6.00%
- Portfolio Spread – 5.30%
- Gross Stage 3 Assets (GNPA) Ratio – 1.80%
- 30+ Days Past Due (30+ DPD) Ratio – 3.20%
- 1+ Days Past Due (1+ DPD) Ratio – 4.70%
- Stage 2 Assets Ratio – 1.40%
- Cost to Income Ratio – 32.70%
- Operating Cost to Assets Ratio – 2.60%–2.70%
- Credit Cost Ratio – 0.40%
The company maintained a capital adequacy ratio of 42.60% as of June 30, 2026, well above statutory regulatory mandates. Net interest margins expanded to 6.00% while Gross Stage 3 assets held stable at 1.80%, reflecting underwriting discipline across mortgage-backed loan books.
Assets Under Management & Loan Mix of Home First Finance (Q1 FY27)
Home First Finance structures its credit portfolio around housing loans, property extension loans, and small-ticket commercial loans against property.
- Housing Loans Share – 86.0% of Total AUM
- Loans Against Property (LAP) Share – 13.0% of Total AUM
- Commercial Property & Multi-Utility Loans Share – 1.0% of Total AUM
- Total Assets Under Management (AUM) – Rs 16,938.00 crore (+25.7% YoY)
- Total Quarterly Disbursements – Rs 1,628.00 crore (+22.8% YoY)
- Average Ticket Size at Sanction – Rs 11.80 lakh
Assets Under Management expanded 25.7% year-on-year to Rs 16,938.00 crore in Q1 FY27. Core housing loans form 86% of total credit dispatches, maintaining a conservative average ticket size of Rs 11.80 lakh per customer account.
Borrower Profile & Underwriting Characteristics of Home First Finance (Q1 FY27)
Home First Finance serves informal self-employed and salaried customer segments with strong collateral coverage and financial inclusion focus.
- Salaried Customer Segment Share – 68.0% of Total AUM
- Self-Employed Customer Segment Share – 32.0% of Total AUM
- Self-Occupied Residential Property Collateral Share – 100.0% of Total AUM
- EMI Stage Portfolio Share – 88.0% of Total Portfolio (Pre-EMI: 12.0%)
- Women Co-Borrowers Share – 90.0% of Total Active Loans (13% primary applicants)
- Underwriting Approval Speed – 85.0% of loans approved within 48 hours
Salaried workers account for nearly seven-tenths of total credit dispatches, backed by in-house digital cash-flow assessments. Approximately 90% of loans feature women co-borrowers, reinforcing credit discipline and financial inclusion objectives.
Geographic Footprint & Branch Network Scale of Home First Finance (Q1 FY27)
Home First Finance operates an expanding physical branch network across high-demand affordable housing states in India.
- Total Operational Branch Network – 177 operational branches
- Total Customer Touchpoints Base – 378 touchpoints across 141+ districts in 13 states/UTs
- Gujarat Home State Share – 28.5% of Total AUM
- Maharashtra Share – 14.8% of Total AUM
- Tamil Nadu Share – 10.4% of Total AUM
- Telangana & Andhra Pradesh Share – 13.3% of Total AUM
- Rajasthan & Madhya Pradesh Share – 14.2% of Total AUM
Branch operations remain anchored in Western and Southern India, with Gujarat and Maharashtra generating over four-tenths of total AUM. Network additions focus on deepening density across Tier-2 to Tier-4 urban centers.
Borrowing Profile & Sourcing Mix of Home First Finance (Q1 FY27)
Home First Finance diversifies its funding liabilities across commercial bank term loans, direct assignments, and debt capital instruments.
- Private Sector Banks Term Loans Share – 35.0% of Total Borrowings
- Direct Assignment (DA) & Securitization Share – 17.0% of Total Borrowings
- Public Sector Banks Term Loans Share – 14.0% of Total Borrowings
- National Housing Bank (NHB) Refinance Share – 12.0% of Total Borrowings
- Non-Convertible Debentures (NCDs) Share – 5.0% of Total Borrowings
- External Commercial Borrowings (ECB) & Co-Lending – 7.0% of Total Borrowings
- Total Outstanding Borrowings Base – Rs 13,721.10 crore
- Weighted Average Cost of Borrowing – 7.80% (compressed by 10 bps QoQ)
Bank term loans fund nearly half of outstanding debt liabilities, lowering overall capital costs. Weighted average cost of borrowing compressed to 7.80% in Q1 FY27, backed by 'AA' credit ratings from ICRA, CARE, and India Ratings.
Digital Adoption & AI Technology Infrastructure of Home First Finance (Q1 FY27)
Home First Finance deploys artificial intelligence models, cloud architecture, and proprietary mobile applications across lead sourcing and underwriting.
- Customer Portal App Registration Share – 96.0% of active customer accounts registered
- Non-Cash Digital Collections Share – 98.0% of total monthly collections
- App-Based Customer Service Requests Share – 78.0% of total servicing requests
- Connector App Sourcing Share – 77.4% of total lead generation sourced via connectors
- AI Deployments – Proprietary AI agents for income assessment and bank statement analysis
Over 98% of monthly collections are executed digitally via non-cash channels, eliminating field cash-handling risk. In-house AI engines automate bank statement analysis and income verification to shorten loan processing turnaround times.
Latest Quarterly Financial Performance of Home First Finance (Q1 FY27)
Home First Finance recorded strong top-line interest income expansion and net profit growth during the first quarter of FY27.
- Net Interest Income (NII) – Rs 254.00 crore (+30.9% YoY)
- Pre-Provisioning Operating Profit (PPOP) – Rs 229.00 crore (+32.4% YoY)
- Consolidated Net Profit After Tax (PAT) – Rs 159.90 crore (+34.5% YoY)
- Annualized Return on Assets (ROA) – 3.80%
- Annualized Return on Equity (ROE) – 17.50%
First-quarter Net Interest Income expanded 30.9% year-on-year to Rs 254.00 crore, supported by 25.7% growth in AUM. Consolidated Net Profit After Tax reached Rs 159.90 crore, producing an annualized Return on Assets of 3.80%.
Consolidated Annual Financial Performance of Home First Finance (FY26)
Home First Finance delivered record operational turnover and net profitability for full financial year FY26.
- Full Year Assets Under Management (AUM) – Rs 15,878.00 crore (+24.9% YoY)
- Full Year Total Disbursements – Rs 5,814.00 crore (+21.2% YoY)
- Full Year Net Interest Margin (NIM) – 5.70%
- Full Year Consolidated Net Profit After Tax (PAT) – Rs 540.00 crore (+41.4% YoY)
- Cost to Income Ratio – 32.50% (improved 330 bps YoY)
Full-year Assets Under Management reached Rs 15,878.00 crore in FY26, as consolidated Net Profit After Tax expanded 41.4% to Rs 540.00 crore. Operational performance was supported by disbursement expansion, cost-to-income improvement, and low credit costs.
Balance Sheet Structure & Capital Health Ratios of Home First Finance (Q1 FY27)
Home First Finance operates a well-capitalized financial structure backed by strong equity capital and liquid cash buffers.
- Total Net Worth Base – Rs 3,850.00 crore
- Total Liquidity Buffer Reserve – Rs 2,272.40 crore
- Credit Rating Status – 'AA / Stable' (ICRA, CARE, India Ratings) & 'A1+' (Short-Term)
- Net Asset Liability Management (ALM) Surplus – Positive cumulative cash flows across all time buckets
- Total Headcount Base – 1,988 native digital employees
Total liquidity reserves stood at Rs 2,272.40 crore as of June 30, 2026, comprising cash equivalents, unavailed bank lines, and NHB sanctions. Capital adequacy held strong at 42.60%, providing ample headroom for AUM expansion.
Management Commentary & Strategic Outlook of Home First Finance (Q1 FY27 Concall)
Management guidance outlines strategic priorities centered on AUM growth, branch density expansion, and AI deployment.
- Management targets maintaining a ~25.0% annual AUM growth trajectory over FY27–FY29.
- Portfolio spreads are guided to sustain within the 5.00%–5.25% corridor through yield management.
- Branch expansion will add 30–40 new branches annually in new cities and existing high-density markets.
- Operating cost to assets ratio is expected to remain range-bound within 2.60%–2.70%.
- Annualized credit costs will be maintained below 0.40% via automated underwriting and collection tools.
Management anticipates strong demand for affordable housing loans across core states to drive loan dispatches. Operational focus centers on expanding physical branch density, scaling AI-driven underwriting models, and preserving balance sheet asset quality.
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Sources & References
- Home First Finance Company India Limited Q1 FY27 Investor Presentation & Press Release Disclosures (July 28–29, 2026)
- Home First Finance Company India Limited Q4 & Full Year FY26 Earnings Conference Call Transcript (May 2026)
- Home First Finance Company India Limited Audited Financial Results Filings to BSE & NSE (July 2026)
- Ticker Finology Home First Finance Company Page
Disclaimer
The information presented above on Home First Finance has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker Home First Finance page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.