Repco Home Finance LimitedFinancial ServicesREPCOHOME
Q1 FY27 concall · earnings callRepco Home Finance Limited
Repco Home Finance delivered steady growth in Q1 with plans to accelerate disbursements after settling staff transfers, while guiding for full-year disbursements of Rs.5,000 Crores and a reduction in NPAs.
Numbers
| Metric | This quarter | Change | Five-quarter trend |
|---|---|---|---|
| Disbursements | ₹843 Cr | — | |
| Sanctions | ₹938 Cr | — | |
| AUM | ₹15,990 Cr | — | |
| GNPA Ratio | 2.7% | — | |
| Net Profit | ₹114 Cr | — | |
| NIM | 5.4 | — | |
| Spread | 3.4% | — | |
| Cost of Funds | 8.3% | — |
Financials
From filed quarterly results. YoY and QoQ compare each metric on the same accounting basis.
| Quarter | Revenue | Net profit (PAT) | Basic EPS |
|---|---|---|---|
| Q3 FY25 | ₹435.93 Cr+12.6% YoY+5% QoQ | ₹113.17 Cr+8.8% YoY-1.7% QoQ | ₹18.09+8.8% YoY-1.7% QoQ |
| Q2 FY25 | ₹415.25 Cr+9.2% YoY+1.8% QoQ | ₹115.13 Cr+11.6% YoY+2.3% QoQ | ₹18.40+11.6% YoY+2.3% QoQ |
| Q1 FY25 | ₹407.83 Cr+11.9% YoY+3.9% QoQ | ₹112.53 Cr+17.9% YoY-1% QoQ | ₹17.99+26.3% YoY-1% QoQ |
| Q4 FY24 | ₹392.58 Cr+15.4% YoY+1.4% QoQ | ₹113.71 Cr+35.4% YoY+9.3% QoQ | ₹18.18+35.5% YoY+9.3% QoQ |
| Q3 FY24 | ₹387.30 Cr+18.4% YoY+1.9% QoQ | ₹104.01 Cr+25.1% YoY+0.8% QoQ | ₹16.63+25.1% YoY+0.8% QoQ |
TL;DR
- Disbursements grew to Rs.843 Crores from Rs.829 Crores a year ago, but were impacted by internal staff transfers in June.
- AUM grew 8.9% YoY to Rs.15,990 Crores, with 71% in home loans and 29% in home equity loans.
- GNPA ratio increased marginally to 2.7% from 2.6% in the prior quarter, but is targeted to fall to ~2% by March 2027.
- Net profit rose to Rs.114 Crores from Rs.108 Crores, with NIM at 5.4% and spread at 3.4%.
- Management targets Q2 disbursements of Rs.1,200-1,250 Crores and expects spreads to compress by 10-12 bps due to competitive actions.
Said on the call
“We do not want dilution or compromise in the quality of asset for the sake of growth.”
From the Q&A
| Topic | What management said |
|---|---|
| Interest Rates and Competition | An investor challenged the company's high interest rates starting at 8.75% (average 10.5%) compared to banks, questioning its competitiveness and growth prospects. Management defended the pricing as necessary given their higher cost of funds (8.3%) and target segment of non-salaried/self-employed borrowers, stating they cannot lend at PSU rates. |
| Diversification Plans | When asked about diversifying beyond housing finance to improve shareholder returns, the MD stated they have no plans to diversify as they are experts only in housing finance and are restricted by their HFC license, but plan to be more aggressive in disbursements. |
| Q1 Disbursement Impact | Management confirmed that Q1 disbursements were impacted by internal staff transfers and promotions in April-May, and by cheque issuance at month-end, which is a regular cyclical event. They stated June and July disbursements have been on track. |
| Growth Visibility and Spread Outlook | When pressed for current run-rate details, management declined to give specific monthly numbers but expressed confidence in achieving Q2 disbursement targets of Rs.1,200-1,250 Crores. They indicated spreads may come down by 10-12 basis points due to competitive pressures, efforts to retain customers (reduce BT outs), and aggressive growth plans. |
| Asset Quality and Recovery Plans | On the marginal rise in GNPA, management attributed it to the temporary disturbance from staff transfers. They detailed a plan to bifurcate NPAs into 'soft' and 'chronic' categories, with dedicated verticals targeting recoveries, aiming to reduce GNPA by Rs.40 Crores in FY27 and bring the ratio below 2% by March 2027. |
| Accounting Practice for Disbursements | Management clarified they have been accounting for disbursements and interest income only after cheque encashment, not on handover date, for the last three to four quarters. |
Guidance
- Full-year disbursement target of Rs.5,000 Crores.
- Full-year AUM growth target of 13-14%.
- Target to reduce gross NPA by Rs.40 Crores for the full year.
- Q2 FY27 disbursement target of Rs.1,200-1,250 Crores.
- Target to bring down June NPA of Rs.427 Crores to ~Rs.405 Crores by September end.
- Aim to bring GNPA ratio below 2% by March 2027.
- Plan to open 12-13 new branches in FY27, mostly in AP, Telangana, Karnataka, and West India.
Source
Summary written from the transcript filed by Repco Home Finance Limited for the call held on 12 Aug 2026; published 18 Aug 2026, 21:06 IST.
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