Home First Finance Company India Ltd (HOMEFIRST) Q1 FY27 Results Analysis: PAT Surges 34.5%, NII Margin Expands 433 bps

Home First Finance Company India Ltd's Q1 FY27 numbers came in strong, with revenue of Rs. 538.01 Cr (+18.61% YoY) and PAT growth of +34.45% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

HOMEFIRST delivered strong Q1FY27 results with 18.6% revenue growth and 34.5% PAT growth, driven by a 433 bps NII margin expansion and contained finance costs post-QIP. However, impairment grew 36% YoY and operating expenses outpaced revenue, warranting monitoring of credit cost and cost control.

Key Investment Insights

Key Positives

• Revenue from operations grew 18.61% YoY to Rs.538.01 Cr.
• PAT grew 34.45% YoY to Rs.159.85 Cr.
• NII grew 30.62% YoY to Rs.253.52 Cr, with NII margin expanding 433 bps YoY to 47.12%.
• PPOP grew 32.92% YoY to Rs.223.53 Cr, outpacing revenue growth.
• Cost-to-income ratio improved 149 bps YoY to 32.55%.
• Finance costs rose only 4.08% YoY, reflecting post-QIP deleveraging benefit.

Risk Factors

• Impairment on financial instruments grew 36.1% YoY, driving credit cost ratio up from 2.57% to 2.96%.
• Operating expenses grew 24.26% YoY, outpacing revenue growth of 18.61% YoY.
• Finance costs rose 6.72% QoQ, indicating incremental borrowing cost pressure.