Home First Finance Q2 FY27 Preview: PAT Seen Up 32%

Q2 results are due this week

Home First Finance Company India Ltd is set to announce its financial results for the quarter ended September 30, 2026. The company had scheduled a board meeting for October 27, 2026, to consider the Q2 FY27 and half-year reviewed financial results. A separate company announcement said results would be reported on October 28, 2026, when management will also hold an analyst and institutional investor call at 4:00 PM IST. Investors will focus on profit growth, net interest income, disbursements and the trend in operating costs.

Brokerages expect higher quarterly profit

Brokerages tracking the housing finance company expect net profit to rise more than 32% year-on-year to ₹174 crore for the September quarter. This estimate compares with ₹160 crore in the preceding June quarter, implying sequential growth of 9%. Forecasts vary widely, with Antique Stock Broking estimating profit of ₹222 crore and 360 ONE Capital Market estimating ₹164 crore. The range indicates that the reported result will be assessed against differing expectations for income and expenses.

Net interest income remains the central metric

Estimated net interest income for Q2 FY27 is ₹285 crore, up 12% sequentially and about 38% from a year earlier, according to the brokerage estimates cited. The highest estimate is ₹344 crore from Yes Securities India Ltd, while IDBI Capital Market Services Ltd has the lowest forecast at ₹261 crore. Net interest income is a key measure for housing financiers because it reflects the difference between interest earned on loans and funding costs. Commentary around spreads and borrowing costs will therefore be closely watched alongside the headline profit number.

AUM and disbursements support expectations

The Q2 estimates are linked to strong growth in assets under management and disbursements, according to the brokerage commentary. In FY26, Home First reported assets under management of ₹15,878 crore, up 24.9% year-on-year, and total disbursements of ₹5,814 crore, up 21.2%. These indicators provide context for the income growth expected in the September quarter. They also show that loan-book expansion has remained important to the company’s earnings profile.

Q1 FY27 sets the comparison base

Home First reported net profit of ₹159.85 crore in Q1 FY27, a year-on-year increase of 34.45%. Interest income stood at ₹535.99 crore, up 18.52% from the same quarter a year earlier. Separately reported quarterly data showed revenue of ₹538 crore, up 7.30% sequentially and 18.61% year-on-year, with gross profit of ₹414 crore. The latest-quarter figures establish the base against which investors will compare the September-quarter performance.

Expense trend will be under review

One brokerage expects operating expenses to increase 24% year-on-year in the September quarter. It also expects a marginal improvement in the cost-to-average-assets-under-management ratio to above 2.5%. The ratio was stated to have been between 2.4% and 2.6% in the preceding four quarters. Expense growth matters because expanding distribution, staff and operating infrastructure can affect profitability even when loan growth and interest income remain strong.

Historical quarterly data shows steady revenue growth

Home First’s reported quarterly revenue rose from ₹255 crore in June 2023 to ₹538 crore in June 2026. Over the same period, financing profit increased from ₹88 crore to ₹211 crore. Revenue moved from ₹501 crore in March 2026 to ₹538 crore in June 2026, while financing profit rose from ₹197 crore to ₹211 crore. This sequence provides a longer-term view of the company’s reported quarterly expansion before the Q2 FY27 announcement.

Profitability metrics provide additional context

For FY26, Home First reported a net interest margin of 5.70% and consolidated profit after tax of ₹540 crore, up 41.4% year-on-year. Its cost-to-income ratio was 32.50%, an improvement of 330 basis points from a year earlier. For Q1 FY27, reported annualised return on assets was 3.80% and annualised return on equity was 17.50%. Another results summary noted a slight decline in PAT margin and lower return on equity relative to industry leaders, highlighting the relevance of margins and return ratios in the upcoming release.

What investors will look for on the analyst call

The October 28 call will give analysts and institutional investors an opportunity to question management on the quarter and the half-year ended September 30, 2026. The company said presentation materials would be posted online. Relevant discussion points include the pace of loan-book growth, disbursement trends, net interest income, spreads, operating expenses and profitability ratios. Any updates provided by management will add context to the reviewed financial results.

The key takeaway

Home First enters its Q2 FY27 results with brokerage estimates pointing to year-on-year and sequential growth in profit, supported by expected gains in net interest income. The expected profit figure of ₹174 crore is above the ₹159.85 crore reported in Q1 FY27, though individual estimates span ₹164 crore to ₹222 crore. The board meeting and results schedule fall on October 27-28, followed by the analyst call on October 28 at 4:00 PM IST. The reported numbers and management commentary will clarify whether earnings, operating costs and loan growth matched market expectations.