Home First Finance Company India Ltd
NSE:HOMEFIRST
Home First Finance Company India Ltd
Home First Finance Company India Ltd. is uniquely positioned in the Indian housing finance market, carving out a niche by catering primarily to the financially underserved segment. Established in 2010, the company targeted individuals usually overlooked by traditional financial institutions—those in the lower and middle-income brackets, often relying on informal income sources. The founders recognized a significant gap in the availability of affordable housing finance, especially for first-time homebuyers, and set out to bridge this divide. By leveraging technology and data-driven decision-making, Home First Finance has been able to streamline the loan approval process, making it faster and more efficient. This technological edge not only enhances customer experience but also minimizes risk through better credit assessment.
The company's business model is centered around providing small-ticket loans predominantly for the purchase or construction of homes. By charging interest on these loans, Home First Finance generates its main revenue stream. It competes by offering tailored financial products with low transaction costs and flexible repayment options. These offerings are specially designed to meet the unique needs of informal sector workers, who often have unpredictable income patterns. Additionally, the company maintains robust measures for loan recovery, ensuring financial sustainability. Through a strategic combination of customer-centric services and operational efficiency, Home First Finance has established itself as a key player in the ever-growing Indian housing finance sector.
Home First Finance Company India Ltd. is uniquely positioned in the Indian housing finance market, carving out a niche by catering primarily to the financially underserved segment. Established in 2010, the company targeted individuals usually overlooked by traditional financial institutions—those in the lower and middle-income brackets, often relying on informal income sources. The founders recognized a significant gap in the availability of affordable housing finance, especially for first-time homebuyers, and set out to bridge this divide. By leveraging technology and data-driven decision-making, Home First Finance has been able to streamline the loan approval process, making it faster and more efficient. This technological edge not only enhances customer experience but also minimizes risk through better credit assessment.
The company's business model is centered around providing small-ticket loans predominantly for the purchase or construction of homes. By charging interest on these loans, Home First Finance generates its main revenue stream. It competes by offering tailored financial products with low transaction costs and flexible repayment options. These offerings are specially designed to meet the unique needs of informal sector workers, who often have unpredictable income patterns. Additionally, the company maintains robust measures for loan recovery, ensuring financial sustainability. Through a strategic combination of customer-centric services and operational efficiency, Home First Finance has established itself as a key player in the ever-growing Indian housing finance sector.
AUM Growth: Home First reported 24.9% year-on-year AUM growth and 5.3% sequential growth, reaching INR 14,925 crores.
Disbursements: Disbursements hit an all-time high of INR 1,318 crores in Q3, up 10.5% year-on-year, with monthly disbursements surpassing INR 500 crores for the first time in December.
Asset Quality: Asset quality remained stable with 1+ DPD improving by 20 bps to 5.3% and gross Stage 3 at 2%, up 10 bps sequentially but expected to improve further.
Profitability: Profit after tax rose to INR 140 crores, up 44% year-on-year and 6.3% quarter-on-quarter; return on assets at 4% and return on equity at 13.7%.
Guidance: Management reaffirmed 25% AUM growth guidance for FY '27 and expects to reach INR 20,000 crores by March 2027.
Cost & Margins: Net interest margin improved to 6% from 5.4% last quarter; cost to income ratio was 32%.
Management Continuity: CEO Manoj Viswanathan confirmed he has no plans to leave, addressing market rumors.
Competitive Pressure: The company reduced PLR by 10 bps effective January 2026 and plans further rate changes only if funding costs decrease.
