Home First Finance Company India Limited (HFFC) is a technology-driven housing finance company focused on the affordable housing segment. The company's mission is to provide home loans to first-time homebuyers, with a predominant focus on families earning less than ₹50,000 per month. Since its inception in 2010, HFFC has built a scalable operating model, growing its Assets Under Management (AUM) to ₹1,58,777 million by March 2026. The company operates on a hub-and-spoke distribution model with 171 branches and 373 touchpoints across 13 states, strategically covering 80% of the affordable housing market in India. HFFC differentiates itself through a data-science-backed, centralized underwriting process that allows it to assess customers with informal sources of income, a segment often underserved by traditional lenders. This tech-first approach enables a remarkable 48-hour turnaround time for loan approvals, a key value proposition for its customers. The company is led by a distinguished board and an experienced management team, fostering a culture of innovation and customer-centricity. HFFC maintains a strong financial position with a diversified funding base from 31 lenders, a robust liquidity buffer, and a high credit rating of 'AA' from multiple agencies.

Official Website: http://www.homefirstindia.com/

• Assets Under Management (AUM): The company has demonstrated robust and consistent growth in its loan book. AUM reached ₹1,58,777 million as of March 2026, marking a 24.9% year-over-year (YoY) increase. The AUM has grown at a 4-year Compound Annual Growth Rate (CAGR) of 31% from FY22 to FY26.

• Disbursements: Loan disbursements for the full year FY26 stood at ₹54,236 million, a 41.4% increase YoY. In Q4FY26, disbursements reached an all-time high of ₹15,724 million, growing 23.5% YoY and 19.3% quarter-over-quarter (QoQ).

• Profitability: Profit After Tax (PAT) for FY26 was ₹5,404 million, a significant 41.4% YoY growth. For Q4FY26, PAT grew 42.7% YoY to ₹1,494 million. This translated into a healthy Return on Assets (ROA) of 3.9% for FY26 and 4.1% for Q4FY26.

• Return on Equity (ROE): The company delivered an ROE of 15.7% for FY26. Adjusting for the recent Qualified Institutional Placement (QIP), the pre-money ROE was 16.8% for the full year and 17.5% for Q4FY26, indicating efficient use of equity capital.

• Capital Adequacy: HFFC is very well-capitalized. The Capital to Risk (Weighted) Assets Ratio (CRAR) stood at a strong 44.1% as of March 2026, well above the regulatory requirement. This provides a substantial buffer to support future growth.

• Liquidity: The company maintains a strong liquidity position with a buffer of ₹31,258 million as of March 2026, consisting of cash, un-availed bank lines, and sanctions from the National Housing Bank (NHB). The company has zero exposure to commercial papers.

The company's financial performance is characterized by strong, profitable growth in its loan book, supported by robust capital and liquidity buffers.

• Niche Customer Focus: HFFC specializes in serving low and middle-income customers, with over 70% of its clients having an annual household income below ₹0.6 million. It has developed expertise in assessing customers with informal or undocumented income sources, a segment that traditional financial institutions find difficult to underwrite.

• Technology-Driven Operations: Technology is at the core of HFFC's business model. It utilizes a 100% cloud-based architecture, a unified CRM and Loan Management System, and proprietary in-house applications for treasury and document management. This tech stack enables efficiency, scalability, and a superior customer experience.

• Speed and Convenience: The company's key value proposition is its industry-leading turnaround time, with 89% of loans approved within 48 hours. Digital tools like the Customer App, Connector App for sourcing partners, and RM Pro App for employees streamline the entire loan lifecycle from lead generation to service.

• Data-Science-Backed Underwriting: HFFC employs a centralized underwriting model that leverages data science and proprietary machine learning algorithms. This approach ensures consistency in credit decisions and allows for a holistic evaluation of a customer's repayment capacity, going beyond traditional income proofs.

• Granular and Secure Loan Book: The loan portfolio is highly granular, with an average home loan ticket size of ₹1.20 million. The underwriting process emphasizes security, with a low Loan-to-Value (LTV) on origination (average 48.1%) and minimal exposure (13%) to under-construction properties, which mitigates asset risk.

HFFC's unique proposition lies in its tech-enabled, data-driven approach to serving the underserved affordable housing segment with speed and efficiency.

• Macroeconomic Stability: The Indian economy maintains stability despite global headwinds from geopolitical conflicts and shifting trade dynamics. This resilience provides a favorable operating environment for the housing finance sector.

• Sustained Domestic Demand: Domestic demand continues to be supported by stable policy settings and improving economic momentum. This backdrop is conducive to growth in the affordable housing market, which is driven by fundamental needs for shelter and urbanization.

The company is operating in a stable domestic economy with sustained demand, which supports its continued business momentum and growth prospects.

• Network Expansion: HFFC is continuously expanding its physical presence. In FY26, the company added 16 new branches, taking its total to 171. This contiguous expansion into key affordable housing markets is a primary driver of AUM growth.

• Diversified Lead Generation: The company utilizes an omni-channel strategy for sourcing leads, with 77.6% coming from its network of "Connectors" (local intermediaries), managed efficiently through a dedicated app. Other channels include builders, digital marketing, and referrals, creating a resilient and diversified pipeline.

• Off-Balance Sheet Growth: HFFC actively utilizes Direct Assignment and Co-lending partnerships with major banks like State Bank of India, HDFC Bank, and Axis Bank. In FY26, the company executed ₹11,458 million in Direct Assignment and ₹8,587 million in Co-lending transactions, allowing it to grow its managed assets and generate fee income while optimizing capital usage.

• Headcount Growth: To support its expansion, the company added 221 employees in FY26, primarily in customer-facing roles. The total headcount now stands at 1,855, indicating investment in scaling its operational capacity.

Growth is driven by a multi-pronged strategy of physical network expansion, diversified lead sourcing, and leveraging capital-efficient co-lending partnerships.

• AUM Growth Guidance: The company is positioned to deliver approximately 25% YoY AUM growth in FY27.

• Strategic Priorities: Future growth will be driven by three key pillars:

1. Distribution Expansion: Continuing to broaden the branch and touchpoint network.

2. Technology Integration: Deepening the use of technology and AI to enhance efficiency and customer experience.

3. Funding Diversification: Maintaining a diversified and strong funding pipeline to support growth at a competitive cost.

• Focus on Risk Management: The company reaffirms its commitment to a strong, embedded risk governance framework to ensure that growth is disciplined, responsible, and sustainable.

The company plans to sustain its high-growth trajectory by continuing its proven strategy of network expansion and technology integration, while maintaining disciplined risk management.

• Stable Spreads: The company has successfully maintained stable spreads despite fluctuations in the interest rate environment. The Net Interest Spread for FY26 was 5.3% (excluding co-lending). For Q4FY26, the spread was also 5.3%.

• Portfolio Yield: The portfolio yield has remained robust, standing at 13.2% in Q4FY26. The company has demonstrated its ability to pass on changes in funding costs to customers through its Prime Lending Rate (PLR) adjustments.

• Cost of Borrowing (COB): HFFC has managed its cost of funds effectively. The marginal COB for Q4FY26 stood at 7.6%, while the average COB for the quarter was 7.9%. Its 'AA' credit rating and diversified lender relationships are key to maintaining competitive borrowing costs.

• Cost to Income Ratio: Operational efficiency is a key strength. The Cost to Income ratio has consistently improved, falling to 32.5% in FY26 from 35.8% in FY25, reflecting the scalability of its technology-led operating model.

HFFC has demonstrated strong control over its margins by maintaining stable spreads and improving operational efficiency, leading to enhanced profitability.

• Credit & Asset Quality Risk: The company's asset quality remains healthy and has shown recent improvement.

• Gross Stage 3 (GNPA): Stood at 1.8% in Q4FY26, an improvement of 20 basis points QoQ.

• Early Delinquencies: A pronounced improvement was seen in early-stage delinquencies, with 30+ Days Past Due (DPD) improving by 50 bps QoQ to 3.2%.

• Collection Efficiency: Remained strong and stable, with collection efficiency by unique customers at 98.8% in March 2026.

• Provisioning: The company maintains an Expected Credit Loss (ECL) provision coverage ratio of 44.9% on its Stage 3 assets as of March 2026.

• Liquidity & Funding Risk: This risk is well-managed through a diversified funding profile with relationships across 31 public sector banks, private banks, and financial institutions.

• No Commercial Paper: The company has zero borrowing through commercial papers, reducing short-term refinancing risk.

• Asset-Liability Management (ALM): The ALM profile is robust, showing cumulative positive cash flow mismatches across all time buckets, ensuring sufficient liquidity to meet obligations.

• Underwriting Risk: This is mitigated by a disciplined and data-centric underwriting framework.

• Low LTV: The average LTV at origination is 48.1%, providing a significant collateral cushion.

• Focus on Completed Property: 87% of the loan book is for completed properties, minimizing risks associated with project delays.

The company manages its risks effectively through disciplined underwriting, strong collection processes, and a prudent approach to liquidity and funding.

• Strong Institutional Shareholding: The company is backed by high-quality institutional investors. As of April 2026, Foreign Institutional Investors (FIIs) & Foreign Portfolio Investors (FPIs) held 51.0%, and Domestic Institutional Investors (DIIs) held 32.8%. Key shareholders include Fidelity, Capital Group, HDFC Mutual Fund, and Kotak Mutual Fund.

• Commitment to ESG: HFFC has a strong focus on Environmental, Social, and Governance (ESG) principles.

• Green Homes: The company actively promotes sustainable living, having certified 450 Green Homes as of March 2026, with a green portfolio AUM over ₹55 Crore.

• Social Impact: Through "Project Sashakt," the company has impacted over 10,000 families via initiatives in skilling, education, health, and financial literacy.

• Governance: The board has a strong independent majority (5 of 7 directors), with a separate Chairman and CEO, reflecting high governance standards.

• High Digital Adoption: Customer engagement with digital platforms is very high. As of Q4FY26, 83% of customers were registered on the mobile app, and 98% of service requests were raised through it. This high adoption rate drives operational efficiency and customer satisfaction, reflected in a high Net Promoter Score (NPS) of 80.

The company benefits from strong institutional backing, a deeply integrated ESG framework, and high digital adoption, which enhance its brand and operational resilience.