HOMEFIRST Q2 FY27 Results Analysis: PAT Jumps 29%, Assignment Volumes Beat Guidance

HOMEFIRST's Q2 FY27 numbers came in strong, with revenue of Rs. 567.04 Cr (+18.37% YoY) and PAT growth of +29.08% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

HOMEFIRST delivered PAT growth of +29.08% YoY with PPOP up +26.07% and cost-to-income at a five-quarter low of 30.61%, while GNPA improved to 1.74% and credit cost of 38.1 bps stayed inside the 30–40 bps guidance band. Direct assignment volumes of Rs.312 Cr exceeded the Rs.150–200 Cr/quarter guidance, and opex-to-assets returned inside the guided range. The one soft signal is sequential finance-cost growth (+7.75% QoQ) outpacing income growth.

Key Investment Insights

Key Positives

• PAT grew +29.08% YoY to Rs.170.19 Cr; H1 PAT Rs.330.04 Cr, +31.63% YoY
• Total income grew +18.37% YoY with interest income up +20.08% YoY
• PPOP grew +26.07% YoY to Rs.237.62 Cr with cost-to-income at 30.61%, best in five quarters
• GNPA improved to 1.74% from 1.8% QoQ and 1.9% YoY; NNPA 1.34%; Stage-3 PCR 23.60%
• Credit cost of 38.1 bps annualised is inside the company's 30–40 bps guidance band, below Q1's 40 bps
• Opex-to-assets at 2.59% returned inside the 2.6–2.7% guidance range after Q1's 2.8%
• Direct assignment of Rs.3,121.12 Mn in Q2 exceeded the Rs.150–200 Cr/quarter guidance band
• Cash & equivalents rose +135.77% since March to Rs.1,057.91 Cr; LCR at 147.57%

Risk Factors

• Finance costs grew +7.75% QoQ, outpacing total income growth of +5.04% QoQ amid market yield firming
• Net gain on fair value changes fell −40.82% YoY to Rs.12.12 Cr
• Stage-3 provision coverage of 23.60% remains low in absolute terms