Can Fin Homes reported a strong Q3 FY26, marked by record disbursements of INR2,727 crores, a 45% increase year-over-year. AUM growth reached approximately 10%. The company aims for disbursements between INR3,200 crores and INR3,300 crores in Q4, targeting total disbursements of INR10,500 crores for the fiscal year. Delinquency rates improved, and the company passed on rate benefits to customers. An IT transformation project is underway, with further developments expected in Q1 of the next fiscal year.
Financial Performance
Can Fin Homes achieved record disbursements of INR2,727 crores in Q3 FY26, representing a 45% increase compared to the same quarter last year. The AUM growth has been about 10%. Prepayments have impacted AUM growth, with INR1,691 crores in prepayments during the quarter.
Delinquency Improvement
The company reported an improvement in delinquency numbers for the fourth consecutive quarter, with SMA numbers decreasing in absolute value. Total delinquency was brought down to below INR3,750 crores. Telangana portfolio also saw improvement in delinquency.
Interest Rate and Spreads
Can Fin Homes passed on a 10 bps benefit to customers from December 1st and an additional 15 bps from January 1st. The company expects spreads to stabilize around 3.75% to 3.80% and NIM to be around 2.75% to 2.80%.
Disbursement Guidance
The company anticipates disbursements of INR3,200 crores to INR3,300 crores in Q4, aiming for total disbursements of INR10,500 crores for the year.
IT Transformation
The IT transformation project is progressing, with HRMS, DMS, and Aadhar Data Vault already implemented. Deposit testing is near completion, and LOS/LMS implementation might be pushed to Q1 of the next fiscal year. The company anticipates a business impact of INR250 crores to INR300 crores during the implementation phase.
Branch Expansion
Can Fin Homes plans to reach about 300 branches by FY28, opening approximately 25 branches each year. The company will focus on geographies like North, West, Tamil Nadu, and East, including Andhra Pradesh.
Vision 2028
The company aims to increase the Self-Employed Non-Professional (SENP) book, targeting a mix of 65% salaried and 35% self-employed by FY28.
Borrowing Mix
Approximately 80% of bank borrowings are linked to external benchmark rates (repo rate), allowing for immediate transmission of rate changes.
Future Projections
For the next financial year (FY27), the company is guiding for spreads of 2.75% and NIM of 3.75%, with a credit cost of 15 bps. AUM growth is projected at approximately 15%, supported by disbursements of about INR13,500 crores. Cost-to-income ratio is estimated at around 19.5%.
Source: BSE
