Home First Finance Reports 43% Profit Surge Driven by Robust AUM Growth.
Home First Finance Company India has reported a robust performance for the fourth quarter, registering a 43% increase in net profit, which surged to Rs 150 crore from Rs 105 crore year-on-year. This upward trajectory was supported by a strong business expansion strategy, with the company’s operating profit witnessing a significant 45% rise to Rs 211 crore during the same period. Total income for the quarter also reflected growth, climbing 21.3% year-on-year to reach Rs 505 crore. For the fiscal year FY26, Home First Finance Company’s net profit stood at Rs 540 crore, an increase from Rs 382 crore in the previous fiscal year, demonstrating an impressive overall financial health.
Muthoot Microfin has demonstrated a remarkable turnaround in its financial performance, posting a net profit of Rs 71 crore in the fourth quarter, a stark contrast to the Rs 401 crore net loss experienced in the same quarter last year. This recovery can be attributed to significant improvements in asset quality, with provisions decreasing sharply from Rs 652 crore to Rs 96 crore, coinciding with a reduction in the gross non-performing assets (NPA) ratio to 3.89% from the previous year’s 4.84%. The lender’s gross profit for the quarter stood at Rs 97 crore, a notable recovery from a loss of Rs 522 crore in the prior year, thereby reflecting effective management and strategies that have bolstered performance.
Both companies are also witnessing progressive tracks in terms of asset growth. Home First Finance Company reported a 25% increase in assets under management (AUM), amounting to Rs 15,878 crore by the end of March, primarily serving low-income customers, as 70% of its client base falls into this category. Meanwhile, Muthoot Microfin achieved a 13.3% year-on-year increase in AUM, hitting Rs 14,006 crore for the fiscal year. In a move to reward its shareholders, Home First Finance Company’s board has recommended a substantial 260% dividend for FY26, translating to Rs 5.20 per share, further emphasizing the firm’s commitment to returning value to its investors amidst a positive financial outlook.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)