HomeFirst Finance Q4FY2025 Results AUM Growth by 31.1% Y-O-Y
* AUM at Rs.12,713 Cr; Strong growth of 31.1% y-o-y and 6.4% q-o-q
* ROE reaches 17.0% in Q4 / 16.5% for FY 2025
* Stable Asset Quality: 90+ DPD flat y-o-y at 1.7%; Credit cost flat at 30bps
* QIP / Fresh equity infusion in Apr’25 of Rs 1,250 Cr; Networth stands at Rs 3,751 Cr (proforma basis)
Commenting on the performance Mr. Manoj Viswanathan, MD & CEO said,
“We are pleased to report yet another year and a quarter of consistent performance, marked by strong growth, operational excellence, and precise execution.
Our Assets Under Management (AUM) grew to Rs. 12,713 cr, registering a 31.1% y-o-y and 6.4% q-o-q increase while delivering a PAT of Rs 382 cr with an ROE of 16.5% for FY2025. Asset quality remained stable with a GNPA of 1.7%.
Disbursements grew notably this quarter, increasing by 6.7% q-o-q. For fiscal 2025, disbursements were up 21.2% y- o-y to Rs 4,805 cr. For the year, Profit After Tax (PAT) rose by 25.0% y-o-y to Rs. 382 cr, and for this quarter PAT increased by 25.4% on a y-o-y basis to Rs 105 cr. We achieved an RoA and ROE of 3.5% and 17.0% for the quarter. Despite the continued rise in MCLRs of banks, we were able to leverage our strong balance sheet and well-diversified borrowing mix to maintain a competitive CoB (Ex-Co-lending) of 8.4% for fiscal 2025.
We continue to scale our operations and grow our distribution in large affordable housing markets. During fiscal 2025, we further expanded our network, adding 40 touchpoints, including 22 branches – this added our reach to 10 more districts within our 13 states and union territory. As of Mar'25, our total touchpoints stand at 361, with 155 branches. As we expand our operations, we also added 385 employees during fiscal 2025, taking the total employee strength to 1,634. Most of these new additions were for our front-end teams to strengthen our customer reach.
In April 2025, HomeFirst successfully raised Rs 1,250 crore by issuing 1.3 Crore of equity shares to Qualified Institutional Buyers via a Qualified Institutional Placement (QIP). This capital infusion will significantly bolster HomeFirst’s capital base. The overwhelming investor response highlights trust in our steady, quality-driven growth trajectory in the affordable housing finance sector.
Our asset quality remains resilient, anchored by strong underwriting and early delinquency management:
1+ DPD is at 4.5% (decline of 30 bps on q-o-q).
30+ DPD at 3.0% (decline of 10 bps on q-o-q).
Gross Stage 3 (GNPA) is at 1.7% (flat on q-o-q). Prior to RBI classification circular of Nov’21, it stands at 1.4%.
Our credit cost is at 30bps (flat on q-o-q basis). We continue to maintain a conservative credit cost guidance of 30 to 40 bps, ensuring disciplined risk management even as we scale.
As we remain focused towards sustainable finance, we expanded our Green Home initiative during the year with 120 Green Homes certifications as of Mar’25. Our ESG efforts are being acknowledged and appreciated by independent global agencies in form of high ESG scores – 46 by S&P Global for 2024 and 16.2 by MorningStar Sustainalytics indicating “Low-risk”.
Technology remains central to our strategy. Digital adoption continues to be strong and a key area of our focus as we
grow. Account aggregator adoption has improved to 75% amongst new approvals. Digital fulfillment has reached
~80% with the use of digital agreements and E-NACH mandates. 96% of our customers are registered on our app as on Mar’25 and 88% of Service requests being raised on the app.
The regulatory environment remains conducive with two consecutive rate cuts of 25 bps each by RBI and focus on improving liquidity, promoting growth and governance. We remain encouraged by the structural long-term growth drivers of the housing sector supported by overall economic growth momentum, improving socio-economic parameters, and rising middle-class. We believe that with our superior execution capability; we will continue to deliver strong growth balanced with stable asset quality and high profitability – delivering sustainable value creation for all our stakeholders.”
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