India · Delayed Price · Currency is INR Can Fin Homes Earnings Call Transcripts
Fiscal Year 2026
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AUM grew 10.44% in FY 2026, with profit up 20% YoY (INR 1,027 crore, ex-one-offs). FY 2027 targets 14% AUM growth, 2.8%+ spread, and higher IT costs. Asset quality remains strong, with GNPA at 0.85% and credit cost at 10 bps.
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Q3 saw record disbursements and improved asset quality, with AUM growth impacted by high prepayments. Guidance for FY 2027 includes 15% AUM growth, stable NIMs and spreads, and continued IT transformation, while regional and segment diversification efforts progress.
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Record Q2 disbursements of INR 2,500 crore and improved NIM above 4% highlight strong operational momentum, with AUM growth slightly below 9% due to higher prepayments. Guidance for FY26 remains at 12%-13% AUM growth and INR 10,500 crore disbursement, supported by IT transformation and expanded branch network.
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Record Q1 disbursement and improved delinquency marked the quarter, with strong growth in North, West, and Tamil Nadu, while Karnataka and Telangana lagged. NIM rose to 3.64%, cost-to-income ratio was impacted by one-time salary adjustments, and branch expansion plus IT upgrades are expected to drive future growth.
Fiscal Year 2025
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Q4 saw a strong rebound in disbursements, especially in Karnataka, driving 31% sequential growth. Asset quality improved with NPAs at 0.87%, and management remains confident of 20% disbursement growth in FY 2026, maintaining spreads, NIM, and prudent provisioning.
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Q3 FY25 saw flat disbursements due to regulatory setbacks in Karnataka and Telangana, but cost of borrowing and portfolio yield improved slightly. AUM growth is expected to recover as operational issues resolve, with FY26 guidance targeting 15% AUM growth and minimal credit costs.
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Disbursements and AUM showed strong growth, with stable margins and improved asset quality. Guidance remains positive for FY25 and FY26, supported by liability repricing, technology upgrades, and branch expansion. Cost-to-income ratio will rise temporarily due to IT investments.
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Q1 FY25 saw a 6% YoY decline in disbursements due to election-related slowdown, but June and July trends are positive. Guidance for FY25 remains at INR 10,500 crore disbursements, 15% AUM growth, and stable spreads and NIM, with improvement expected if government housing schemes are announced.