Synopsis: Home First Finance reported another strong quarter with profit after tax rising 34.5 percent YoY to Rs. 159.9 crore, driven by healthy loan growth, improving interest income and disciplined asset quality. The affordable housing lender continued expanding its loan book while maintaining strong profitability and stable credit costs.
Shares of Home First Finance Company India Limited are likely to remain in focus after the company reported healthy financial results for the first quarter of FY27, supported by robust growth in interest income, higher loan disbursements and sustained profitability. The Board approved the reviewed financial results for the quarter ended June 30, 2026 at its meeting held on July 27, 2026.
Home First Finance Company India Limited has a total market capitalization of approximately Rs. 12,335 crore. The company’s shares were trading at Rs. 1180.20 apiece on the stock exchange. The stock has declined 7.16 percent over the last five trading sessions and gained 0.96 percent over the past month. The stock touched a 52-week high of Rs. 1441 and a 52-week low of Rs. 893.70.
Q1 FY27 Financial Performance
Home First Finance reported total income of Rs. 539.8 crore during Q1 FY27, compared to Rs. 455.3 crore in the corresponding quarter last year, registering a 18.6 percent YoY growth. Revenue from operations increased to Rs. 538 crore, led by strong growth in its lending business.
Interest income rose 17.1 percent YoY to Rs. 462 crore from Rs. 394.4 crore a year earlier, reflecting expansion in the company’s loan portfolio. Fees and commission income also increased to Rs. 23.4 crore, while gains on derecognition of financial instruments improved significantly to Rs. 36.5 crore, supporting overall earnings growth.
Profit before tax increased 32.7 percent YoY to Rs. 207.6 crore, while profit after tax rose 34.5 percent to Rs. 159.9 crore, compared to Rs. 118.9 crore in Q1 FY26. Earnings per share improved to Rs. 15.31 from Rs. 11.69 during the same period last year. The company’s earnings were primarily driven by sustained growth in its housing loan portfolio, which resulted in higher interest income. Better fee income and increased gains from loan assignments also contributed to profitability.
Although finance costs increased to Rs. 208.4 crore due to higher borrowings required to fund loan growth, the increase in lending income was significantly higher, enabling the company to expand profits. Employee expenses also increased as Home First continued investing in branch expansion, technology and manpower to support future growth. Despite these investments, operating leverage remained healthy, allowing profitability to improve.
Home First continues to focus on first-time homebuyers from low and middle-income families, a segment that remains significantly underpenetrated in India. Housing loans account for nearly 83 percent of its Assets Under Management (AUM), with an average ticket size of around Rs. 12 lakh, enabling the company to maintain a diversified retail portfolio with relatively lower concentration risk.
The lender has built a pan-India distribution network covering nearly 80 percent of India’s affordable housing market, supported by technology-driven underwriting and proprietary credit scoring models that enable faster loan approvals and improved customer experience.
Strong funding profile supports expansion
One of the company’s key strengths is its diversified borrowing profile. Home First is supported by 31 banks and financial institutions, reducing dependence on any single lender while ensuring stable access to funding. The company also maintains a positive asset-liability profile with no exposure to commercial paper, helping lower refinancing risk during volatile interest rate cycles.
During the quarter, Home First also completed direct assignment transactions involving 3,792 loans aggregating Rs. 317 crore, demonstrating its ability to efficiently recycle capital and support continued lending growth.
India’s affordable housing finance market continues to offer significant long-term growth opportunities, supported by rising urbanisation, increasing household incomes, favourable government policies and growing housing demand among first-time buyers. Digital loan processing, improved access to formal credit and lower mortgage penetration compared to developed markets provide a large addressable market for specialised housing finance companies.
With consistent loan growth, strong profitability, disciplined credit underwriting and a technology-led operating model, Home First Finance appears well positioned to benefit from the long-term expansion of India’s affordable housing sector.
Founded in 2010, Home First Finance Company India Limited is a technology-driven affordable housing finance company focused on providing home loans to first-time homebuyers across India. The company primarily serves families earning below Rs. 50,000 per month, with housing loans accounting for around 83 percent of its AUM and an average loan ticket size of approximately Rs. 12 lakh. Supported by a diversified lender base, proprietary credit assessment models and a pan-India distribution network, the company offers fast and hassle-free home financing solutions to underserved customers.
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