• Q4 FY26 achieved all-time high quarterly disbursement of ₹3,245 crores, with each quarter in FY26 setting new records
• Karnataka recovered from Khata approval issues to deliver 7% disbursement growth versus negative start, now targeting 15% growth in FY27 with monthly run-rate improving from ₹250 crores to ₹290 crores
• Telangana stabilized from -33% in Q1 to flat performance (₹1,147 crores vs ₹1,198 crores prior year), now consistently doing ₹100+ crores per month
• Successfully converted 85% of loan portfolio from annual reset to quarterly reset (from 71% annual reset), passing on 50 basis points benefit to customers while maintaining 2.8% spread
• GNPA improved to 0.85% from 0.87% prior year, with absolute delinquency reduction for fifth consecutive quarter and credit cost of just 10 basis points for FY26
• New branches (54 opened in last 2 years) contributed ₹863 crores in FY26 versus only ₹128 crores in FY25, with plan to open 28 more branches in H1 FY27
• Sales team expansion from 35 to 80-90 people drove ₹868 crores disbursements versus ₹183 crores prior year, targeting further expansion to 150 people
• Profit reached ₹1,085 crores (20% growth to ₹1,027 crores excluding one-time items of ₹46 crore DTA provision and ₹13.5 crore tax refund)

Can Fin Homes delivered FY26 disbursements of ₹10,531 crores (exceeding ₹10,500 crore guidance) with 10.44% AUM growth, though marginally below 11-12% target due to elevated prepayments of ₹6,600 crores. Management demonstrated confidence by maintaining 2.75% spread guidance despite shifting 85% of the portfolio to quarterly reset, targeting 14% AUM growth and ₹13,000 crore disbursements for FY27, with Karnataka and Telangana markets showing recovery after regulatory challenges.

Can Fin Homes achieved FY26 disbursements of ₹10,531 crores, marginally exceeding the ₹10,500 crore guidance, with Q4 recording an all-time high of ₹3,245 crores. AUM growth reached 10.44%, slightly below the 11-12% target due to elevated prepayments of ₹6,600 crores versus the anticipated ₹6,000 crores. Net profit for FY26 was ₹1,085 crores (₹1,027 crores excluding one-time items), representing 20% growth over FY25's ₹857 crores. The company maintained spread at 2.8% despite transitioning 85% of the portfolio to quarterly reset with 50 basis points benefit passed to customers, with opening yield for FY27 at 9.8%. Cost of borrowing stands at 6.99% as of April 1, with bank borrowings increased to 62% from 55% to access lower rates (below 7%). GNPA improved to 0.85% from 0.87%, with PCR increasing from 49% to 56%. Credit cost remained benign at 10 basis points for FY26. The company expects ₹40 crores incremental IT-related costs in FY27 (part of ₹300 crore total project: ₹100 crore CapEx, ₹200 crore OpEx over 5 years).

Management exhibited confident tone despite acknowledging elevated prepayment pressures, emphasizing strategic execution in challenging markets. CEO Suresh Iyer highlighted successful resolution of Karnataka's Khata approval issues and Telangana's stabilization as key achievements, demonstrating adaptability. The proactive shift to quarterly reset pricing for 85% of the portfolio while maintaining spreads was positioned as de-risking the business model. Management conservatively maintained 15 basis point credit cost guidance despite actual 10 basis points performance, and guided for 2.75% spread versus actual 2.8%, showing disciplined expectation-setting. Strategic priorities clearly emphasized: (1) geographic expansion through 28 new branches in H1 FY27, (2) sales force scaling from 90 to 150 people, (3) maintaining asset quality focus with conservative LTV policies even at cost of losing some business to competitors, and (4) completing IT transformation for efficiency gains. The tone was pragmatic about competitive pressures from LIC Housing and Bajaj Finance but confident in risk management approach.

The company faces elevated prepayment pressure with ₹6,600 crores runoff in FY26 versus ₹5,300 crores prior year, projecting ₹7,000 crores for FY27. Balance transfer competition primarily from LIC Housing (offering rates as low as 7.15%) and Bajaj Finance (aggressive top-up offerings) resulted in ₹400 crores BT-out in Q4 alone. While 85% portfolio is now on quarterly reset, the remaining 15% on annual reset creates potential margin compression risk if rates increase. Geopolitical tensions and IT sector layoffs in Bangalore (though currently showing no delinquency impact per management) remain monitoring points. The affordable housing segment shows definite slowdown per management, though their target segment remains resilient. IT implementation costs will pressure cost-to-income ratio by ₹40 crores in FY27, potentially impacting ROE from current levels. Karnataka and Telangana, representing significant markets, are still recovering with Karnataka targeting return to 15% growth and Telangana to positive growth after flat/negative performance. Rural areas in Karnataka continue facing Gram Panchayat approval delays. PMAY 2.0/CLSS schemes showing limited traction with only 1 lakh applications across industry in 6 months. Management acknowledged conservative LTV policies sometimes result in lost business to more aggressive competitors on top-up loans.

Revenue Outlook: Targeting ₹13,000 crore disbursements for FY27 with 25% growth targeted across all zones uniformly

Margin Outlook: Spread guidance of 2.75% (actual 2.8%); NIM guidance of 3.75%; some scope for cost of funds reduction through NHB repricing and lower bank/CP rates

Key Targets:

• AUM growth: 14% for FY27 (net addition of ₹6,000 crores after ₹7,000 crore projected prepayments)
• Disbursements: ₹13,000 crores for FY27
• Karnataka: 15% disbursement growth
• New branches: 28 to be opened in H1 FY27 (including 3 in Karnataka, 2 in Telangana)
• Sales team expansion: From 80-90 to 150 people
• Credit cost: 15 basis points guidance (conservative, expecting below that)
• ROA: >2.4-2.5%
• ROE: 18%+
• IT costs: ₹40 crore incremental for FY27

The Q&A session focused heavily on three themes: (1) sustainability of spreads post quarterly-reset conversion, (2) prepayment and BT-out pressures, and (3) disbursement growth visibility for FY27. Analysts were particularly concerned about the elevated prepayment run-rate (₹6,600 crores vs ₹5,300 crores prior year) and whether the quarterly reset conversion would stabilize this. Management provided detailed reassurance, showing Q4 BT-out was stable at ₹400 crores versus ₹380 crores in Q3 despite seasonal pressures, and emphasized that 85% portfolio conversion with upfront benefit pass-through should reduce future switching. On spreads, management convincingly demonstrated that despite converting 85% to quarterly reset and passing 50 bps benefit, they maintained 2.8% spread with 9.8% yield, addressing prior concerns about margin compression. Multiple analysts probed disbursement growth drivers, given just 6-7% branch growth, with management articulating clear strategy around sales force expansion (90 to 150 people) and new branch productivity (₹863 crore contribution vs ₹128 crore prior year). Concerns about competitive intensity from LIC Housing and Bajaj Finance were acknowledged pragmatically, with management defending conservative underwriting approach. Credit quality questions were minimal given strong trends, though analysts did probe IT sector exposure in Bangalore and geopolitical risks, receiving reassurance of no visible stress. Overall, management demonstrated strong command of business drivers and maintained conservative guidance despite actual outperformance, building credibility.