Can Fin Homes Ltd delivered exceptional Q2 FY27 results that drove shares up 2.5% to ₹736.15 on the NSE. The housing finance company reported a 9.2% year-on-year increase in standalone net profit to ₹274.61 crore for the quarter, compared with ₹251.43 crore in the year-ago period. Net income from operations rose 7.8% to ₹1,131.18 crore from ₹1,049.45 crore in Q2 FY26, demonstrating robust growth in the company's core lending business. According to the latest exchange filing, profit before tax increased 4.7% to ₹347.22 crore from ₹331.58 crore, while basic and diluted earnings per share stood at ₹20.62 compared with ₹18.88 year-on-year. Total comprehensive income rose to ₹275.82 crore from ₹251.34 crore in the corresponding period last year.
The company's September-quarter performance reflected temporary operational disruption from the IT transformation, which weighed on disbursements. As per Motilal Oswal's analysis, the technology rollout now complete, recovery in disbursements over the coming quarters will be an important monitorable. Despite the temporary setback, asset quality remained healthy with overall delinquencies largely stable and credit costs expected to remain benign at less than 10 basis points. The company's loan book expanded significantly to ₹43,539 crore in Q2 FY27, marking a 10% increase from ₹39,657 crore in the corresponding period last year, with housing loans constituting 83% of the loan book.
The company's operational efficiency showed mixed results during the quarter. Cost-to-income ratio increased to 19.59% in Q2 FY27 from 18.55% in Q2 FY26, indicating higher operational expenses due to the IT transformation. Gross non-performing assets (NPAs) increased to ₹392 crore in Q2 FY27 from ₹373 crore in the same period last year, reflecting some asset quality challenges. However, the company maintained strong liquidity with documented undrawn bank lines of ₹2,571 crore as of September 30, 2026, providing coverage for business commitments for the next three months. The company is carrying total provisions of ₹525 crore, including ₹59 crore as management overlay and ₹49 crore in provisions for restructured accounts.
For the half-year ended September 2026, Can Fin Homes reported net profit of ₹542.43 crore on net income from operations of ₹2,227.51 crore. Profit before tax stood at ₹685.73 crore, while earnings per share were ₹40.74 for the half-year period. The company achieved a significant milestone with its technology transformation project TETAS, which has now achieved full implementation across all functional applications. The platform operates on enterprise-grade cloud infrastructure with a fully operational three-tier digital framework, supporting scalability and optimized cost structures.
Can Fin Homes' financial position strengthened significantly during the quarter. Net worth increased to ₹5,980.40 crore from ₹5,067.49 crore a year earlier, while outstanding debt rose to ₹39,077.81 crore from ₹36,106.63 crore in the year-ago period. However, the debt-equity ratio improved to 6.09 from 6.61 a year earlier and 6.40 at the end of March 2026, indicating better leverage management. Shareholders had approved a final dividend of ₹8 per equity share for the financial year ended March 31, 2026, which was paid on August 3, 2026. Motilal Oswal maintains a Neutral rating with a target price of ₹795 based on 1.2x Sep'28E P/BV, modeling an advances/PAT CAGR of ~12%/6% over FY26-28E with RoA/RoE of ~2.3%/~16% in FY28E.
