Can Fin Homes Limited achieved record-breaking performance in Q4 FY26, with quarterly disbursements reaching an all-time high of INR 3,245 crores. For the full fiscal year, the company disbursed INR 10,531 crores, marginally exceeding its guidance. Despite competitive pressures and IT transformation costs, the company maintains a strong outlook, projecting 14% AUM growth and a steady spread of 2.75% to 2.8% for FY27.
Record Financial Performance
Can Fin Homes Limited concluded FY26 on a high note, demonstrating consistent quarterly growth. The company reported a total annual disbursement of INR 10,531 crores. Profitability remained robust, with a profit of INR 1,027 crores (excluding one-time events), representing a 20% growth over the previous year’s INR 857 crores. Asset quality improved significantly, with the GNPA ratio reducing to 0.85%.
Strategic Shifts and Margin Management
Management highlighted a major strategic transition, with over 85% of the loan book now shifted to quarterly reset. This move, combined with passing on a 50 basis point benefit to customers, has been instrumental in managing Balance Transfer (BT) pressures. Despite this transition, the company is confident in maintaining a spread of 2.75% and a NIM of 3.75% for FY27, supported by an incremental yield of over 9.8%.
Operational Outlook and IT Investments
The company is heavily investing in IT transformation to drive future efficiencies, with a total project outlay of INR 300 crores. While this will lead to a temporary elevation in the cost-to-income ratio in FY27, the management expects these digital upgrades, including new LOS and LMS systems, to deliver long-term operational advantages. The company is targeting 14% AUM growth for FY27, driven by an ambitious disbursement target of INR 13,000 crores and the planned addition of 28 new branches in the first half of the year.
Regional Growth and Demand Drivers
After initial headwinds in Karnataka and Telangana due to e-khata and registration issues, both regions have stabilized and are expected to contribute significantly to growth. The company reported that North and West zones, along with Andhra Pradesh, delivered over 40% growth in disbursements. Management emphasized that demand remains steady, with no significant impact observed from the global geopolitical situation or IT sector job losses, as the company maintains a conservative and prudent lending approach.
Source: BSE
